Senate Study Bill 1061

                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            COMMERCE BILL BY
                                            CHAIRPERSON ANGELO)


    Passed Senate, Date                Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act increasing the surcharge for certain dishonored negotiable
  2    instruments.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2085SC 80
  5 da/sh/8

PAG LIN

  1  1    Section 1.  Section 554.3512, subsection 1, Code 2003, is
  1  2 amended to read as follows:
  1  3    1.  The holder of a dishonored check, draft, or order may
  1  4 assess against the maker of that check, draft, or order a
  1  5 surcharge of not more than the greater of twenty thirty
  1  6 dollars or five percent of the face value of the check.
  1  7 However, the amount of the surcharge shall not exceed twenty
  1  8 thirty dollars unless the check, draft, or order was presented
  1  9 twice or the maker does not have an account with the drawee.
  1 10 If the check, draft, or order was presented twice or the maker
  1 11 does not have an account with the drawee, the amount of the
  1 12 surcharge shall not exceed fifty dollars.
  1 13                           EXPLANATION
  1 14    This bill amends Code section 554.3512 in Article 3 of the
  1 15 Uniform Commercial Code regulating negotiable instruments
  1 16 (providing a promise to pay an amount of money payable to the
  1 17 bearer upon demand or at some definite time).  The bill
  1 18 increases the surcharge that may be assessed against checks,
  1 19 drafts, or orders which are dishonored from $20 to $30.
  1 20 LSB 2085SC 80
  1 21 da/sh/8
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