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Indicates Matter Stricken
Indicates New Matter
Sponsors: Senators Sheheen and Ford
Document Path: l:\council\bills\agm\19294bb09.docx
Introduced in the Senate on January 13, 2009
Introduced in the House on February 26, 2009
Last Amended on February 25, 2009
Currently residing in the House Committee on Labor, Commerce and Industry
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/10/2008 Senate Prefiled 12/10/2008 Senate Referred to Committee on Judiciary 1/13/2009 Senate Introduced and read first time SJ-133 1/13/2009 Senate Referred to Committee on Judiciary SJ-133 1/23/2009 Senate Referred to Subcommittee: Campbell (ch), Cleary, Williams, Mulvaney, Nicholson 2/4/2009 Senate Committee report: Favorable with amendment Judiciary SJ-3 2/5/2009 Scrivener's error corrected 2/10/2009 Senate Committee Amendment Adopted SJ-19 2/11/2009 Scrivener's error corrected 2/25/2009 Senate Amended SJ-26 2/25/2009 Senate Read second time SJ-26 2/26/2009 Senate Read third time and sent to House SJ-8 2/26/2009 Scrivener's error corrected 2/26/2009 House Introduced and read first time HJ-115 2/26/2009 House Referred to Committee on Labor, Commerce and Industry HJ-115
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
Indicates Matter Stricken
Indicates New Matter
February 25, 2009
S. Printed 2/25/09--S. [SEC 2/26/09 2:58 PM]
Read the first time January 13, 2009.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-5-175 SO AS TO PROVIDE THAT A LENDER WHO DELIVERS AN UNSOLICITED CHECK TO A PERSON MUST DISCLOSE THAT THE CHECK SECURES A LOAN, THE TERMS OF THE LOAN, AND NOTICE THAT BY NEGOTIATING THE CHECK THE RECIPIENT HAS ENTERED INTO A LOAN AGREEMENT, TO PROVIDE PROTECTION AND RECOURSE FOR INTENDED PAYEES IF AN UNSOLICITED CHECK IS CASHED FRAUDULENTLY, AND TO PROVIDE THAT A VIOLATION OF THIS SECTION IS AN UNFAIR TRADE PRACTICE AND SUBJECT TO APPROPRIATE PENALTIES AND ENFORCEMENT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 5, Title 39 of the 1976 Code is amended by adding:
"Section 39-5-175. (A) For purposes of this section:
(1) 'Check' means a demand draft drawn on or payable through an office of a depository institution located in the United States, which has imprinted on it the account holder's name and the depository institution's name, location, and routing number.
(2) 'Unsolicited check' means a check mailed or otherwise delivered to a person from a person, firm, or corporation engaged in lending money, which is made payable to the recipient and which, upon negotiation, creates a loan and obligates the recipient to repay the amount of the check plus interest and fees.
(B) It is an unfair trade practice pursuant to Section 39-5-20 for a person, firm, or corporation engaged in lending money to deliver to a person an unsolicited check made payable to the recipient which, upon negotiation, obligates the recipient to repay the amount of the check plus interest and fees.
(C) The provisions of this section do not apply to a transaction in which a person has submitted an application or requested an extension of credit from the lender before receiving the check or instrument, or if the lender has an existing account relationship with the person.
(D) A violation of this section is an unfair trade practice pursuant to Chapter 5 of Title 39 and is subject to all of the enforcement and penalty provisions of an unfair trade practice pursuant to this chapter."
SECTION 2. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release, or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 3. This act takes effect one hundred eighty days after approval by the Governor.
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