AB261-AA1,1,4 4"(a) "Check" has the meaning given in s. 217.02 (2).

AB261-AA1,1,55 (b) "Purchase of goods or services" does not include an extension of credit.".

AB261-AA1,1,9 9"(a) The document contains, on its face, both of the following:

AB261-AA1,1,1210 1. In at least 10-point type, a statement in substantially the following form:
11"THIS IS A SOLICITATION FOR A LOAN. READ THE ATTACHED
12DISCLOSURES BEFORE SIGNING THIS AGREEMENT."

AB261-AA1,2,3

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12. In at least 6-point type, a statement in substantially the following form: "By
2endorsing the back of this check, you accept our offer and agree to the terms of your
3loan agreement contained in the disclosure statement attached to this check."

AB261-AA1,2,7 4(b) Notification of the loan agreement being activated by endorsement must be
5conspicuously printed in at least 6-point type on the back of the check in
6substantially the following form: "By endorsing this check, you agree to repay this
7loan according to the terms of the attached loan agreement."

AB261-AA1,2,208 (c) The check is attached to a disclosure statement that is detachable and that
9contains in at least 10-point boldface type a statement that is conspicuously placed
10and is in substantially the following form: "This is a loan solicitation. If you cash this
11check, you are agreeing to borrow the sum of $____ at the ____ % rate of interest for
12a period of ____ months. Your monthly payments will be $____ for ____ months. If
13you are late with a payment, you will be charged the following fees in addition to your
14monthly payment: (list fees). All other terms of this loan are clearly identified as loan
15terms and appear on the back of the check or on this attachment. Read these terms
16carefully before you cash this check. Cashing this check constitutes a loan
17transaction. You may cancel this loan by returning the amount of the check to the
18lender within 10 days of the date on which this check is cashed. You may prepay this
19loan agreement at anytime without penalty. READ THE AGREEMENT BEFORE
20SIGNING."

AB261-AA1,2,24 21(2g) In the event a check described under sub. (2) is obtained by a person other
22than the intended payee, and the check is cashed fraudulently or without
23authorization from the payee, the lender who issued the check shall do all of the
24following:

AB261-AA1,3,8

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1(a) Upon receipt of notification that intended payee did not negotiate the check,
2promptly provide the intended payee with a statement or affidavit to be signed by
3the intended payee confirming that the intended payee did not deposit or cash the
4check or receive the proceeds of the check. The lender shall provide the intended
5payee with the name and telephone number of a contact person designated by the
6lender to provide assistance to intended payees who have been victimized by the
7fraudulent negotiation of unsolicited checks and cease all collection activity against
8the intended payee until the lender completes an investigation into the transaction.

AB261-AA1,3,109 (b) Direct the intended payee to complete and return the confirmation
10statement to the lender or an affiliate of the lender.

AB261-AA1,3,1911 (c) Within 30 days of the receipt of the confirmation statement, conduct a
12reasonable investigation to determine whether the check was fraudulently
13negotiated. Absent evidence to the contrary, the lender shall presume that the
14confirmation statement submitted by the intended payee is accurate. The lender
15shall notify the intended payee in writing of the results of the investigation. If it is
16determined that the check was cashed fraudulently, the lender shall take immediate
17action to remove the intended payee from all liability on the account and to request
18all credit reporting agencies to remove references to the transaction, if any, from the
19intended payee's credit reports.

AB261-AA1,3,22 20(2m) A consumer who is an intended payee of an unsolicited check under this
21section may bring an action against the violator to recover damages, costs, and,
22notwithstanding s. 814.04 (1), reasonable attorney fees.

AB261-AA1,4,2 23(2r) This section does not apply to a transaction in which the recipient of a
24check described under sub. (2) has submitted an application or requested an
25extension of credit from the lender before receiving the check or instrument, or a

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1transaction in which the lender has an existing account relationship with the
2recipient of a check described under sub. (2).".