Bill 206

                    Current Status

Bill Number:               206
Ratification Number:       127
Act Number                 73
Introducing Body:          Senate
Subject:                   Prima facie evidence of fraudulent
                           intent in drawing and uttering checks

(A73, R127, S206)

AN ACT TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PRIMA FACIE EVIDENCE OF FRAUDULENT INTENT IN DRAWING AND UTTERING CHECKS, SO AS TO REQUIRE A SERVICE CHARGE OF TEN DOLLARS RATHER THAN FIVE DOLLARS IN PROCESSING CHECKS THAT HAVE BEEN RETURNED.

Be it enacted by the General Assembly of the State of South Carolina:

Prima facie evidence of fraudulent intent

SECTION 1. Subsection (a) of Section 34-11-70 of the 1976 Code, as last amended by Act 93 of 1979, is further amended to read:

"(a) When any check, draft, or other order is not paid by the drawee because the maker or drawer did not have an account with or sufficient funds on deposit with the bank or the person upon which such draft, check, or other written order was drawn when presented or the draft, check, or order has an incorrect or insufficient signature thereon, and the maker or drawer of such check, draft, or other written order fails to pay the amount due thereon, together with a service charge of ten dollars, within fifteen days after written notice has been sent by certified mail to the address printed on the check or given at the time it is tendered or provided on a check-cashing identification card stating that payment was refused upon the instrument, then such check shall constitute prima facie evidence of fraudulent intent against the maker. All service charges collected pursuant to this section must be paid to the payee of the instrument.

(1) For purposes of subsection (a), notice must be given by mailing the notice with postage prepaid addressed to such person at the address as printed or written on the instrument. The giving of notice by mail is complete upon the expiration of fifteen days after such deposit of such notice in the mail. A certificate by the payee that such notice has been sent as required by this section is presumptive proof that the requirements as to notice have been met, regardless of the fact that the notice might not actually have been received by the addressee. The form of notice must be substantially as follows:

'You are hereby notified that a check or instrument, numbered ______ , issued by you on_________ (date), drawn upon_________ (name of bank), and payable to________________________ , has been dishonored. Pursuant to South Carolina law, you have fifteen days from the date this notice was mailed to tender payment of the full amount of such check or instrument plus a service charge of ten dollars, the total amount due being ______________ dollars and _____________ cents. Unless this amount is paid in full within the specified time above, the holder of such check or instrument may turn over the dishonored check or instrument and all other available information relating to this incident to the solicitor or other appropriate officer for criminal prosecution.'

(2) When any person instituting prosecution gives notice in substantially similar form provided in item (1) of this subsection to the person and the bank upon which the instrument was drawn and waits fifteen days from the date notice is mailed before instituting the criminal proceedings, there arises a presumption that the prosecution was instituted for reasonable and probable cause and the person instituting prosecution is immune from civil liability for the giving of such notice."

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.