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insured by an agency of the federal government which may be withdrawn only on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