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This entry was published on 2014-09-22
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Unsolicited mail-loan checks
§ 9-t. Unsolicited mail-loan checks. 1. For purposes of this section,
the following terms shall have the following meanings:

(a) "lending institution" shall mean a licensed lender or a state or
federally chartered bank, trust company, savings bank, savings and loan
association or credit union.

(b) "mail-loan check" shall mean a check, made out to and mailed to a
person by a lending institution, which, when cashed or deposited by such
person, obligates such person to repay to such lending institution the
amount of the proceeds of such check according to terms mailed to such
recipient with such check.

2. Any lending institution which issues mail-loan checks shall:

(a) include on the face of each check issued to a non-customer a
written statement, in legible type reading "ONE FORM OF VALID
PHOTOGRAPHIC ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any
entity cashing or accepting a mail-loan check for deposit may require
more than one form of identification;

(b) make no reference on the outside of the envelope containing a
mail-loan check that indicates that a check is enclosed within such

(c) provide that all mail-loan checks shall be non-transferable; and

(d) include an expiration date of not more than six months on the
mail-loan check.

3. Any lending institution which mails a mail-loan check in violation
of the provisions of this section shall be liable for a civil penalty
not to exceed five hundred dollars for each such violation.