Download This Version in Microsoft Word format

Bill 3547

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 18, 1999

H. 3547

S. Printed 5/18/99--S.

Read the first time April 20, 1999.

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 INCREASE THE SERVICE CHARGE FROM TWENTY-FIVE TO THIRTY DOLLARS.

Amend Title To Conform

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

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 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 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 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)."

SECTION 2. That portion of Section 34-11-60(D) preceding item (1) 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 any a hotel, motel, or other hostelry by means of a check, draft, or other written order at any time prior to before or upon departure or checkout from the hostelry must be construed as is obtaining those goods or services by means of such 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 any check given only in full or partial payment of a preexisting debt unless given to satisfy a preexisting debt which resulted from a revolving credit account which is not a consumer credit transaction as defined in Section 37-1-301(11), to the giving of any a check, draft, or other written order where if:"

SECTION 3. This act takes effect upon approval by the Governor.

This web page was last updated on Friday, June 26, 2009 at 2:59 P.M.