H*2423 Session 107 (1987-1988)
H*2423(Rat #0793, Act #0669 of 1988) General Bill, By H.H. Clyborne, Alexander,
Bailey, B.O. Baker, P.T. Bradley, H. Brown, R.S. Corning, Haskins, Kirsh,
J.G. Mattos, W.S. McCain, D.M. McEachin, J.H. Nesbitt, J.T. Petty and Wilkins
A Bill to amend Section 34-11-60, as amended, Code of Laws of South Carolina,
1976, relating to drawing and uttering fraudulent checks, so as to redefine
"credit", so as to delete the exclusion for postdated checks; and to amend
Section 34-11-70, as amended, relating to prima facie evidence of fraudulent
intent in drawing a check and determination of probable cause for prosecution,
so as to reduce the notice requirement from fifteen to ten days, to raise the
service charge on dishonored checks from ten to fifteen dollars, and to delete
provisions relating to service charges for checks for preexisting
debts.-amended title
02/10/87 House Introduced and read first time HJ-447
02/10/87 House Referred to Committee on Judiciary HJ-448
03/25/87 House Committee report: Majority favorable with amend.,
minority unfavorable Judiciary HJ-1425
03/23/88 House Amended HJ-2261
03/23/88 House Debate adjourned until Thursday, March 24, 1988 HJ-2265
03/23/88 House Reconsidered HJ-2266
03/23/88 House Read second time HJ-2266
03/24/88 House Read third time and sent to Senate HJ-2339
03/24/88 Senate Introduced and read first time SJ-11
03/24/88 Senate Referred to Committee on Judiciary SJ-11
04/13/88 Senate Committee report: Majority favorable, minority
unfavorable Judiciary SJ-62
06/01/88 Senate Amended SJ-12
06/01/88 Senate Read second time SJ-15
06/01/88 Senate Unanimous consent for third reading on next
legislative day SJ-15
06/02/88 Senate Read third time SJ-25
06/02/88 Senate Returned SJ-25
06/02/88 House Concurred in Senate amendment and enrolled HJ-4701
06/20/88 Ratified R 793
06/27/88 Signed By Governor
06/27/88 Effective date 07/01/87
06/27/88 Act No. 669
08/01/88 Copies available
(A669, R793, H2423)
AN ACT TO AMEND SECTION 34-11-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO DRAWING AND UTTERING FRAUDULENT CHECKS, SO AS TO REDEFINE
"CREDIT", SO AS TO DELETE THE EXCLUSION FOR POSTDATED CHECKS; AND TO
AMEND SECTION 34-11-70, AS AMENDED, RELATING TO PRIMA FACIE EVIDENCE OF
FRAUDULENT INTENT IN DRAWING A CHECK AND DETERMINATION OF PROBABLE CAUSE FOR
PROSECUTION, SO AS TO REDUCE THE NOTICE REQUIREMENT FROM FIFTEEN TO TEN DAYS, TO
RAISE THE SERVICE CHARGE ON DISHONORED CHECKS FROM TEN TO FIFTEEN DOLLARS, AND
TO DELETE PROVISIONS RELATING TO SERVICE CHARGES FOR CHECKS FOR PREEXISTING
DEBTS.
Be it enacted by the General Assembly of the State of South Carolina:
Credit defined
SECTION 1. Section 34-11-60(d) of the 1976 Code is amended to read:
"(d) The word 'credit' as used in this section means securing further
advances of money, goods, or services by means of a check, draft, or other
written order, given in whole or in part payment of a then existing account.
Payment for meals, lodging, or other goods or services at any hotel, motel, or
other hostelry by means of a check, draft, or other written order at any time
prior to or upon departure or checkout from such hostelry must be construed as
obtaining those goods or services by means of such check, draft, or other written
order for the purposes of this section. This section does not apply to any check
given only in full or partial payment of a preexisting debt, to the giving of any
check, draft, or other written order where the payee knows, has been expressly
notified, or has reason to believe that the drawer did not have an account or
have on deposit with the drawee sufficient funds to insure payment of the check,
nor to any check which has not been deposited to an account of the payee within
a period of ten days from the date the check was presented to the payee. It is
also unlawful for any person to induce, solicit, or to aid and abet any other
person to draw, make, utter, issue, or deliver to any person including himself
any check, draft, or other written order on any bank or depository for the
payment of money or its equivalent, being informed, knowing, or having reasonable
cause for believing at the time of the inducing, soliciting, or the aiding and
abetting that the maker or the drawer of the check, draft, or other written order
has not sufficient funds on deposit in, or an account with, the bank or
depository with which to pay the same upon presentation."
Insufficient funds
SECTION 2. Section 34-11-70 of the 1976 Code, as last amended by Act 75 of
1987, is further amended to read:
"Section 34-11-70. (a) When any check, draft, or other 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 the draft,
check, or other written order was drawn when presented or the draft, check, or
order has an incorrect or insufficient signature on it, and the maker or drawer
of the check, draft, or other written order fails to pay the amount due on it,
together with a service charge of fifteen 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 the check
constitutes prima facie evidence of fraudulent intent against the maker. All
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 might not actually 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 fifteen 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 any person instituting prosecution gives notice in substantially
similar form provided in item (1) of this subsection 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.
(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."
Time effective
SECTION 3. This act takes effect July 1, 1987. |