§ 5-61-3.1 - Security.
SECTION 5-61-3.1
§ 5-61-3.1 Security. – (a) Each telephonic seller, pursuant to the provisions of this chapter, shalldeliver and file with the consumer protection division of the department beforea confirmation of registration shall be issued or re-issued:
(1) A surety bond, written by a company recognized andapproved by the commissioner of insurance within the department of businessregulation and approved by that department with respect to its form, manner ofexecution, and sufficiency in due form to the state of Rhode Island; or
(2) An irrevocable letter of credit issued for the benefit ofthe telephonic seller by a bank whose deposits are insured by an agency of thefederal government; or
(3) A certificate of deposit in a financial institutioninsured by an agency of the federal government which may be withdrawn only onthe order of the department, except that the interest may accrue to thetelephonic seller.
(b) The amount of bond, letter of credit, or certificate ofdeposit must be a minimum of thirty thousand dollars ($30,000). The departmentmay, at its discretion, establish a bond of greater amount to ensure thegeneral welfare of the public.
(c) The security set forth in subsection (a) of this sectionshall be limited to indemnify the purchaser only for actual damages. Thissecurity shall neither limit or impair any right of recovery otherwiseavailable pursuant to law, nor shall the amount of security be relevant indetermining the amount of damage or other relief which any purchaser shall beentitled. The security shall be accessible only after all other legal remedieshave been exhausted. In the event the security is exhausted, the telephonicseller shall immediately notify the department, which shall cause any publicnotice that it deems appropriate to be given immediately.