H 3419 Session 111 (1995-1996)
H 3419 General Bill, By J.L.M. Cromer
Similar(S 479)
A Bill to amend Section 34-11-70, as amended, Code of Laws of South Carolina,
1976, relating to fraudulent checks, so as to increase the service charge
which shall be paid to the payee of the instrument from twenty to twenty-five
dollars.
01/31/95 House Introduced and read first time HJ-6
01/31/95 House Referred to Committee on Judiciary HJ-6
01/09/96 House Tabled in committee Judiciary
A BILL
TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
FRAUDULENT CHECKS, SO AS TO INCREASE THE SERVICE
CHARGE WHICH SHALL BE PAID TO THE PAYEE OF THE
INSTRUMENT FROM TWENTY TO TWENTY-FIVE
DOLLARS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 34-11-70 of the 1976 Code, as last
amended by Act 36 of 1991, is further amended to read:
"Section 34-11-70. (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 twenty-five 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
twenty-five 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 and the
bank 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
twenty-five 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).
(b) Any court, including magistrate's, may dismiss a case under
the provisions of this chapter for want of prosecution. When any
prosecutions are initiated under this chapter, the party applying for
the warrant is held liable for all reasonable administrative costs
accruing not to exceed twenty dollars if the case is dismissed for
want of prosecution. Unless waived by the court, the party applying
for the warrant shall notify, orally or otherwise, the court not less
than twenty-four hours before the date and time set for trial that full
restitution has been made in connection with the warrant, and the
notification relieves that party of the responsibility of prosecution.
(c) Any court, including magistrate's, may dismiss any
prosecution initiated pursuant to the provisions of this chapter on
satisfactory proof of restitution and payment by the defendant of all
administrative costs accruing not to exceed twenty dollars submitted
before the date set for trial after the issuance of a warrant.
(d) For purposes of this chapter, subsequent persons receiving a
check, draft, or other written order by endorsement from the
original payee or a successor endorsee have the same rights that the
original payee has against the maker of the instrument, if the maker
of the instrument has the same defenses against subsequent persons
as he may have had against the original payee. However, the
remedies available under this chapter may be exercised only by one
party in interest."
SECTION 2. This act takes effect upon approval by the
Governor.
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