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Current Status Bill Number:View additional legislative information at the LPITS web site.3286 Ratification Number:376 Act Number:291 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20010117 Primary Sponsor:Davenport All Sponsors:Davenport Drafted Document Number:l:\council\bills\nbd\11154ac01.doc Date Bill Passed both Bodies:20020522 Governor's Action:S Date of Governor's Action:20020603 Subject:Checks, fraudulent; service charge increased on certain History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020617 Act No. A291 ------ 20020603 Signed by Governor ------ 20020528 Ratified R376 Senate 20020522 Read third time, enrolled for ratification Senate 20020425 Read second time, notice of general amendments Senate 20020411 Minority report removed by unanimous consent Senate 20010509 Committee report: majority 02 SBI favorable, minority unfavorable Senate 20010322 Introduced, read first time, 02 SBI referred to Committee House 20010320 Read third time, sent to Senate House 20010312 Read second time House 20010307 Committee report: Favorable 25 HJ House 20010117 Introduced, read first time, 25 HJ referred to Committee Versions of This Bill Revised on March 7, 2001 - Word format Revised on May 9, 2001 - Word format
(A291, R376, H3286)
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 CHECKS AND SERVICE CHARGES FOR DRAWING FRAUDULENT CHECKS, SO AS TO INCREASE THE SERVICE CHARGE ON CHECKS OF ONE HUNDRED DOLLARS OR LESS FROM TWENTY-FIVE DOLLARS TO THIRTY DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
Service charge for returned checks
SECTION 1. Section 34-11-70(a) of the 1976 Code, as last amended by Act 87 of 1999, 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 thirty 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 thirty 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 thirty 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)."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Ratified the 28th day of May, 2002.
Approved the 3rd day of June, 2002.
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