Download This Bill in Microsoft Word format
Current Status Bill Number:View additional legislative information at the LPITS web site.3547 Ratification Number:156 Act Number:87 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990217 Primary Sponsor:Davenport All Sponsors:Davenport Drafted Document Number:l:\council\bills\psd\7220ac99.doc Date Bill Passed both Bodies:19990526 Date of Last Amendment:19990520 Governor's Action:S Date of Governor's Action:19990611 Subject:Checks, fraudulent; service charge on; Banks and Savings and Loan Associations; preexisting debt, remedies History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 19990702 Act No. A87 ------ 19990611 Signed by Governor ------ 19990609 Ratified R156 House 19990526 Concurred in Senate amendment, enrolled for ratification Senate 19990520 Amended, read third time, returned to House with amendment Senate 19990518 Amended, read second time, ordered to third reading with notice of general amendments Senate 19990513 Recalled from Committee, 02 SBI placed on the Calendar Senate 19990420 Introduced, read first time, 02 SBI referred to Committee House 19990415 Read third time, sent to Senate House 19990414 Amended, read second time House 19990408 Request for debate by Representative J. Brown Bales Cobb-Hunter Pinckney Scott Lloyd House 19990407 Debate adjourned until Thursday, 19990408 House 19990331 Committee report: Favorable 25 HJ House 19990217 Introduced, read first time, 25 HJ referred to Committee Versions of This Bill Revised on March 31, 1999 - Word format Revised on April 14, 1999 - Word format Revised on May 13, 1999 - Word format Revised on May 18, 1999 - Word format Revised on May 20, 1999 - Word format
(A87, R156, H3547)
AN ACT TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLECTION AND PROSECUTION PROCEDURES FOR CHECKS DRAWN WITH INSUFFICIENT FUNDS ON DEPOSIT, SO AS TO AUTHORIZE CHARGING TWENTY-FIVE OR THIRTY DOLLARS AS THE SERVICE CHARGE ON CHECKS OVER ONE HUNDRED DOLLARS RATHER THAN A TWENTY-FIVE DOLLAR SERVICE CHARGE ON ALL CHECKS; AND TO AMEND SECTION 34-11-60, AS AMENDED, RELATING TO DRAWING AND UTTERING FRAUDULENT CHECKS, SO AS TO PROVIDE THAT FRAUDULENT CHECK REMEDIES AND PROCEDURES APPLY TO A CHECK GIVEN IN FULL OR PARTIAL PAYMENT OF ANY PREEXISTING DEBT, INSTEAD OF APPLYING ONLY TO THOSE PREEXISTING DEBTS RESULTING FROM A REVOLVING CREDIT ACCOUNT WHICH IS NOT A CONSUMER CREDIT TRANSACTION.
Be it enacted by the General Assembly of the State of South Carolina:
Service charge for fraudulent checks
SECTION 1. Section 34-11-70(a) of the 1976 Code, as last amended by Act 138 of 1995, is further amended to read:
"(a) When a check, a draft, or other written 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 it was drawn when presented or the draft, check, or other written order has an incorrect or insufficient signature on it, and the maker or drawer does not pay the amount due on it, together with a service charge of twenty-five, or, thirty dollars for checks over one hundred dollars, within ten 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 it constitutes prima facie evidence of fraudulent intent against the maker. 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 the person at the address as printed or written on the instrument. The giving of notice by mail is complete upon the expiration of ten days after the deposit of the notice in the mail. A certificate by the payee that the 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 actually might not have been received by the addressee. The form of notice must be substantially as follows:
You are 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 ten days from the date this notice was mailed to tender payment of the full amount of the check or instrument plus a service charge of twenty-five, or, thirty dollars for checks over one hundred dollars, the total amount due being ___ dollars and ___ cents. Unless this amount is paid in full within the specified time above, the holder of the 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 a person instituting prosecution gives notice in substantially similar form provided in item (1) to the person upon which the instrument was drawn and waits ten 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 the notice.
(3) A service charge of not more than twenty-five, or, thirty dollars for checks over one hundred dollars is payable by the drawer of a draft, a 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 a then existing debt including, but not limited to, consumer credit transactions, and is dishonored. This service charge is solely to compensate the payee of the instrument for incurred expenses in processing the dishonored instrument and is not related to a presumption of fraud so that it is not necessary to issue the notice to the person at the address as printed on the instrument set forth in items (1) and (2)."
Drawing and uttering fraudulent checks
SECTION 2. Section 34-11-60(d)of the 1976 Code, as last amended by Act 235 of 1996, is further amended to read:
"(d) The word 'credit' as used in this section means securing further advances of money, goods, or services by means of a check, draft, or other written order, given in whole or in part payment of a then existing account. Payment for meals, lodging, or other goods or services at a hotel, motel, or other hostelry by means of a check, draft, or other written order before or upon departure or checkout from the hostelry is obtaining those goods or services by means of a check, draft, or other written order for the purposes of this section. This section applies to a check given in full or partial payment of any preexisting debt. This section does not apply to the giving of a check, draft, or other written order if the payee knows, has been expressly notified, or has reason to believe that the drawer did not have an account or have on deposit with the drawee sufficient funds to ensure payment of the check, nor to any check which has not been deposited to an account of the payee within a period of ten days from the date the check was presented to the payee. It is also unlawful for any person to induce, solicit, or to aid and abet any other person to draw, make, utter, issue, or deliver to any person including himself any check, draft, or other written order on any bank or depository for the payment of money or its equivalent, being informed, knowing, or having reasonable cause for believing at the time of the inducing, soliciting, or the aiding and abetting that the maker or the drawer of the check, draft, or other written order has not sufficient funds on deposit in, or an account with, the bank or depository with which to pay the same upon presentation."
Time effective
Section 3. This act takes effect upon approval by the Governor.
Ratified the 9th day of June, 1999.
Approved the 11th day of June, 1999.
This web page was last updated on Wednesday, December 9, 2009 at 9:15 A.M.