AUGUSTA — A bill proposed by Sen. Linda Valentino, D-Saco, that prohibits financial institutions and creditors from mailing unsolicited loan offers known as “live” checks passed in the state senate Tuesday.

The bill will need to be signed by Gov. Paul LePage to become law.

LD 455, An Act to Prohibit Deceptive Practices Regarding Negotiable Investments, enacts a new provision in the Uniform Deceptive Trade Practices Act prohibiting the use of a solicitation designed to resemble a “negotiable instrument,” including a check, unless the document clearly states on its face that it is not negotiable, according to a press release from Valentino. Uncharted loan companies would be prohibited from mailing the solicitations, which have the appearance of an actual check but when cashed by the recipient constitute acceptance of a loan.

The bill protects both consumers and businesses, said Valentino.

“Now when someone receives one of these ”˜live’ checks they can call the Attorney General and they will have an avenue to protect themselves,” said Valentino in the press release. “We cannot allow companies to prey on the elderly or other folks who may be down on hard times.”

The measure received support from the Superintendent of the Maine Bureau of Consumer Credit Protection Will Lund and Assistant Attorney General Linda Conti.