Amendment ID: S175-1

Amendment 1

Protecting consumers from unsolicited loans

Ms. Forry moves to amend the bill by striking out proposed section 2 of proposed chapter 140F of the General Laws and inserting in place thereof the following section:-

“Section 2. No person or entity shall issue an unsolicited loan instrument; provided, however, that this section shall not prohibit a financial institution from advancing money or credit in accordance with the law and pursuant to a customer relationship, as defined in the Gramm-Leach-Bliley Act of 1999, 15 U.S.C. 6809 (11), or a valid mortgage or loan agreement.”; and

by adding in said proposed chapter 140F the following section:-

“Section 8. If a an unsolicited loan instrument is negotiated, the obligor shall have the right to rescind the contract within 10 days of the date that a negotiable instrument is cashed by notifying the financial institution or lender and returning the entire amount of the loan pursuant to the negotiable instrument.”; and

by adding the following section:-

“SECTION 2. Chapter 266 of the General Laws is hereby amended by inserting after section 33A the following section:-

Section 33B. Whoever converts into cash or equivalent value an unsolicited loan instrument, as defined in section 1 of chapter 140F, with intent to defraud shall be punished by imprisonment in a house of correction for not more than 2 ½ years or by imprisonment in the state prison for not more than 5 years or by a fine of not more than $25,000, or by both such fine and imprisonment.”.