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H. 3782

STATUS INFORMATION

General Bill
Sponsors: Rep. G.M. Smith
Document Path: l:\council\bills\pt\1185mm03.doc

Introduced in the House on March 12, 2003
Currently residing in the House Committee on Judiciary

Summary: Fraudulent checks and collection agencies

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/12/2003  House   Introduced and read first time HJ-9
   3/12/2003  House   Referred to Committee on Judiciary HJ-9

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/12/2003

TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EVIDENCE OF FRAUDULENT INTENT AND PROSECUTION FOR ISSUANCE OF ANY FRAUDULENT CHECK, DRAFT, OR OTHER WRITTEN ORDER, SO AS TO PROVIDE THAT A COMMERCIAL AGENT FOR COLLECTION OF AN OBLIGATION PAID FOR WITH ANY FRAUDULENT CHECK, DRAFT, OR OTHER WRITTEN ORDER DOES NOT HAVE THE SAME RIGHTS AS THE ORIGINAL PAYEE, AND MAY NOT RELY ON THE CIVIL OR CRIMINAL REMEDIES IN CHAPTER 11, TITLE 34, FOR PROSECUTING OR CIVILLY ENFORCING PAYMENT OF A FRAUDULENT CHECK, UNLESS THE CHECK, DRAFT, OR OTHER WRITTEN ORDER HAS BEEN ENDORSED OVER TO THE AGENT FOR COLLECTION FOR VALUE AND WITHOUT RESERVATION OF RIGHTS, AND THAT AN AFFIDAVIT EVIDENCING SUCH AN ENDORSEMENT MUST ACCOMPANY AN APPLICATION FOR A BAD CHECK WARRANT.

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

SECTION    1.    Section 34-11-70(d) of the 1976 Code is amended to read:

"(d)(1)    For purposes of this chapter, subsequent persons receiving a any 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.

(2)    For purposes of this chapter, a commercial agent for collection of an obligation paid for with any fraudulent check, draft, or other written order:

(i)    does not have the same rights as the original payee, and may not rely on the civil or criminal remedies in this chapter for prosecuting or civilly enforcing payment of a fraudulent check, unless the check, draft, or other written order is endorsed over to the agent for collection for value and without reservation of rights by the endorser; and

(ii)    who institutes criminal prosecution in connection with the fraudulent check, draft, or other written order pursuant to subitem (i) shall include an affidavit with his application for a warrant with sufficient sworn information to reasonably support a determination that he is a holder of the fraudulent check, draft, or other written order in compliance with subitem (i)."

SECTION    2.    This act takes effect upon approval by the Governor.

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