A Georgia licensee orders 500 branded pens carrying 9 words about the firm and no rate or product. Do these pens meet the short promotional-item exception to the advertisement definition?
Correct Answer
B) Not an advertisement: fifteen words or fewer, no rate or product
An advertisement is material used or intended to induce the public to apply for a mortgage loan, in any medium, but the term excludes promotional materials of fifteen words or fewer about the entity mortgage business that carry no reference to a specific rate or product, such as balloons, hats, pens and calendars. Other choices: handing them out is what promotional items are for; keeping them inside is not the test; and the identifier requirement follows from being an advertisement rather than deciding it. Source: Ga. Comp. R. & Regs. 80-11-1-.02(f)
Why This Is the Correct Answer
An advertisement is material used or intended to induce the public to apply for a mortgage loan, in any medium, but the term excludes promotional materials of fifteen words or fewer about the entity mortgage business that carry no reference to a specific rate or product, such as balloons, hats, pens and calendars. Other choices: handing them out is what promotional items are for; keeping them inside is not the test; and the identifier requirement follows from being an advertisement rather than deciding it. Source: Ga. Comp. R. & Regs. 80-11-1-.02(f)
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