Bill 3757

                    Current Status

Bill Number:               3757
Ratification Number:       492
Act Number:                422
Introducing Body:          House
Subject:                   Relating to prima facie evidence of
                           fraudulent intent in drawing and uttering
                           dishonored checks

(A422, R492, H3757)

AN ACT TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PRIMA FACIE EVIDENCE OF FRAUDULENT INTENT IN DRAWING AND UTTERING DISHONORED CHECKS, SO AS TO AUTHORIZE A SERVICE CHARGE ON DISHONORED CHECKS, DRAFTS, OR OTHER WRITTEN ORDERS PRESENTED FOR PAYMENT OF A THEN EXISTING DEBT AND TO PROVIDE THAT CERTAIN NOTICE PROVISIONS DO NOT APPLY TO THE IMPOSITION OF THIS SERVICE CHARGE.

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

Service charge

SECTION 1. Subsection (a) of Section 34-11-70, as amended, is further amended by adding a new item (3) to read:

"(3) A service charge of not more than ten dollars is payable by the drawer of any draft, 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 any then existing debt, including but not limited to consumer credit transactions, and is dishonored. In this event, the service charge is solely to compensate the payee of the instrument for incurred expenses in processing the dishonored instrument and is not related to any presumption of fraud so that it is not necessary to issue the notice to the person at the address as printed on the instrument, as hereinbefore set forth in items (1) and (2) of this subsection."

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.