Bill 221

                    Current Status

Bill Number:               221
Ratification Number:       21
Act Number                 14
Introducing Body:          Senate
Subject:                   To add a provision requiring a service
                           charge payable by the drawer of a draft,
                           check, or other written order to the payee

(A14, R21, S221)

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 A CHECK AND DETERMINATION OF PROBABLE CAUSE FOR PROSECUTION, SO AS TO ADD A PROVISION REQUIRING A SERVICE CHARGE PAYABLE BY THE DRAWER OF A DRAFT, CHECK, OR OTHER WRITTEN ORDER TO THE PAYEE OF THE INSTRUMENT WHEN IT IS PRESENTED FOR PAYMENT IN WHOLE OR IN PART OF ANY DEBT EXISTING AT THAT TIME.

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

Service charge

SECTION 1. Section 34-11-70(a) of the 1976 Code, as last amended by Act 669 of 1988, is further amended by adding:

"(3) A service charge of not more than fifteen dollars is payable by the drawer of any draft, check, or other written order to the payee of the instrument when the draft, check, or other written order is presented for payment in whole or in part of any then existing debt, including, but not limited to, consumer credit transactions, and is dishonored. In this event, the service charge is solely to compensate the payee of the instrument for incurred expenses in processing the dishonored instrument and is not related to any presumption of fraud so that it is not necessary to issue the notice to the person at the address as printed on the instrument, as set forth in items (1) and (2) of this subsection."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.