House File 483

                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE,
                                           REGULATION AND LABOR

                                       (SUCCESSOR TO HSB 50)


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

                                      A BILL FOR

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

PAG LIN

  1  1    Section 1.  Section 554.3512, subsection 1, Code 2003, is
  1  2 amended by striking the subsection and inserting in lieu
  1  3 thereof the following:
  1  4    1.  The holder of a dishonored check, draft, or order may
  1  5 assess against the maker of that check, draft, or order a
  1  6 surcharge not to exceed thirty dollars.
  1  7                           EXPLANATION
  1  8    This bill amends Code section 554.3512 in Article 3 of the
  1  9 Uniform Commercial Code regulating negotiable instruments
  1 10 (providing a promise to pay an amount of money payable to the
  1 11 bearer upon demand or at some definite time).  The bill
  1 12 increases the surcharge that may be assessed against checks,
  1 13 drafts, or orders which are dishonored from $20 to $30.
  1 14    The bill eliminates a provision that the amount of the
  1 15 surcharge could also equal 5 percent of the face value of the
  1 16 instrument, which could be above the $20 surcharge amount in
  1 17 current law.  Finally, the bill eliminates a provision that if
  1 18 the financial instrument was presented twice or the maker does
  1 19 not have an account with the drawee, the amount of the
  1 20 surcharge could increase to $50.
  1 21 LSB 2085HV 80
  1 22 da/sh/8
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