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Bill Number: 2158 Ratification Number: 111 Act Number 75 Introducing Body: House Subject: Fraudulent intent in drawing checks, drafts, or other written orders
(A75, R111, H2158)
AN ACT TO AMEND SECTION 34-11-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FRAUDULENT INTENT IN DRAWING CHECKS, DRAFTS, OR OTHER WRITTEN ORDERS, SO AS TO PROVIDE THAT 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.
Be it enacted by the General Assembly of the State of South Carolina:
Rights of subsequent persons receiving a check
SECTION 1. Section 34-11-70 of the 1976 Code is amended by adding:
"(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.