Text: HSB00236 Text: HSB00238 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2501, subsection 1, paragraph g, 1 2 Code 1995, is amended to read as follows: 1 3 g. A surcharge of not more thantenthe greater of twenty 1 4 dollars or five percent of the amount of the dishonored 1 5 payment instrument for each dishonored payment instrument 1 6 provided that the fee is clearly and conspicuously disclosed 1 7 in the cardholder agreement. However, the surcharge shall not 1 8 be assessed against the maker if the reason for the dishonor 1 9 of the instrument is that the maker has stopped payment 1 10 pursuant to section 554.4403. 1 11 Sec. 2. NEW SECTION. 554.3505A HOLDER'S RECOURSE FOR 1 12 DISHONOR. 1 13 The holder of a dishonored check may assess against the 1 14 maker of that check a surcharge of not more than the greater 1 15 of twenty dollars or five percent of the face value of the 1 16 check for each dishonored check. The surcharge authorized by 1 17 this section shall not be assessed unless the holder clearly 1 18 and conspicuously posts a notice at the holder's usual place 1 19 of payment, or includes the notice in the billing statement of 1 20 the holder, stating that a surcharge will be assessed and the 1 21 amount of the surcharge. However, the surcharge shall not be 1 22 assessed against the maker if the reason for the dishonor of 1 23 the check is that the maker has stopped payment pursuant to 1 24 section 554.4403. 1 25 Sec. 3. NEW SECTION. 554.3505B CIVIL REMEDY FOR 1 26 DISHONOR. 1 27 1. In a civil action against a person who makes a check 1 28 which is dishonored for lack of funds or credit, or because 1 29 the maker has no account with the drawee, the plaintiff may 1 30 recover from the defendant damages equal to three times the 1 31 amount for which the dishonored check is drawn. However, 1 32 damages under this section shall not exceed the amount of the 1 33 check by more than five hundred dollars and may be awarded 1 34 only if all the following are true: 1 35 a. The plaintiff made written demand by restricted 2 1 certified mail of the defendant for payment of the amount of 2 2 the check not less than thirty days before commencing the 2 3 action. 2 4 b. The defendant has failed to tender to the plaintiff, 2 5 prior to commencement of the action, an amount of money no 2 6 less than the amount demanded pursuant to paragraph "a". 2 7 c. The plaintiff clearly and conspicuously posted a notice 2 8 at the plaintiff's usual place of payment, or included the 2 9 notice in a billing statement of the plaintiff, stating that 2 10 civil damages pursuant to this section would be sought upon 2 11 dishonoring a check. 2 12 2. In an action for damages pursuant to subsection 1, if 2 13 the court or jury determines that the failure of the defendant 2 14 to satisfy the dishonored check was due to economic hardship, 2 15 the court or jury may waive all or part of the allowable civil 2 16 damages. However, if the court or jury waives all or part of 2 17 the civil damages, the court or jury shall render judgment 2 18 against the defendant in the amount of the dishonored check, 2 19 draft, or order, and the actual costs incurred by the 2 20 plaintiff in bringing the action. 2 21 3. This section does not apply if the reasons for the 2 22 dishonor of the check is that the maker has stopped payment 2 23 pursuant to section 554.4403 because of a bona fide dispute 2 24 between the maker and the holder relating to the consideration 2 25 for which the check, draft, or order was given. 2 26 4. In actions brought pursuant to this section, no addi- 2 27 tional award pursuant to section 625.22 shall be made. 2 28 EXPLANATION 2 29 This bill amends provisions relating to the remedies pro- 2 30 vided for a dishonored check or payment instrument. 2 31 Section 537.2501 is amended to provide to increase the 2 32 allowable surcharge which may be assessed against the maker of 2 33 a dishonored payment instrument from $10 to $20 or 5 percent 2 34 of the amount of the dishonored instrument, whichever amount 2 35 is greater. 3 1 New section 554.3505A is created and provides that the 3 2 holder of a dishonored check, associated with a transaction 3 3 governed by the uniform commercial code, may assess against 3 4 the maker of the dishonored check a surcharge of $20 or 5 per- 3 5 cent of the amount of the dishonored check, whichever amount 3 6 is greater. The surcharge authorized by this section is not 3 7 to be assessed against the maker if the reasons for the 3 8 dishonor of the check is that the maker has stopped payment on 3 9 the check pursuant to section 554.4403 (customer's right to 3 10 stop payment). 3 11 New section 554.3505B is created and provides that in a 3 12 civil action against a person who issues a check which is dis- 3 13 honored for lack of funds or credit, or because the person 3 14 does not have an account with the drawee, the plaintiff may 3 15 recover damages equal to three times the amount of the 3 16 dishonored check, not to exceed the amount of the check by 3 17 more than $500. The civil damages provided for in this 3 18 section may be awarded if the plaintiff made written demand by 3 19 restricted certified mail for payment of the amount of the 3 20 check, the defendant fails to pay the amount demanded, and the 3 21 plaintiff clearly and conspicuously posted a notice at the 3 22 plaintiff's usual place of business or included such notice in 3 23 a billing statement of the plaintiff stating that such civil 3 24 damages would be sought. The court or a jury may waive all or 3 25 part of the allowable civil damages if it is determined that 3 26 the failure to satisfy the dishonored check was due to 3 27 economic hardship. The civil penalty authorized by this 3 28 section does not apply if the reason for the dishonor of the 3 29 check is that the maker has stopped payment on the check 3 30 pursuant to section 554.4403 (customer's right to stop 3 31 payment). 3 32 LSB 1869HC 76 3 33 mj/jw/5
Text: HSB00236 Text: HSB00238 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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