TITLE 5

Businesses and Professions

CHAPTER 5-61

Telephone Sales Solicitation Act

SECTION 5-61-3.1



   § 5-61-3.1  Security. –

(a) Each telephonic seller, pursuant to the provisions of this chapter, shall

deliver and file with the consumer protection division of the department before

a confirmation of registration shall be issued or re-issued:



   (1) A surety bond, written by a company recognized and

approved by the commissioner of insurance within the department of business

regulation and approved by that department with respect to its form, manner of

execution, and sufficiency in due form to the state of Rhode Island; or



   (2) An irrevocable letter of credit issued for the benefit of

the telephonic seller by a bank whose deposits are insured by an agency of the

federal government; or



   (3) A certificate of deposit in a financial institution

insured by an agency of the federal government which may be withdrawn only on

the order of the department, except that the interest may accrue to the

telephonic seller.



   (b) The amount of bond, letter of credit, or certificate of

deposit must be a minimum of thirty thousand dollars ($30,000). The department

may, at its discretion, establish a bond of greater amount to ensure the

general welfare of the public.



   (c) The security set forth in subsection (a) of this section

shall be limited to indemnify the purchaser only for actual damages. This

security shall neither limit or impair any right of recovery otherwise

available pursuant to law, nor shall the amount of security be relevant in

determining the amount of damage or other relief which any purchaser shall be

entitled. The security shall be accessible only after all other legal remedies

have been exhausted. In the event the security is exhausted, the telephonic

seller shall immediately notify the department, which shall cause any public

notice that it deems appropriate to be given immediately.



History of Section.

(P.L. 1999, ch. 456, § 2.)