HOUSE FILE 2170

BY  KRESSIG

A BILL FOR

An Act relating to the notice provided to persons subject to a surcharge assessed for the return of a dishonored financial instrument.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 554.3512, subsection 2, Code 2011, is amended to read as follows:
   2.  The surcharge authorized by this section
 
subsection 1 shall not be assessed unless the holder clearly and conspicuously posts a notice at the usual place of payment, or in the billing statement of the holder, stating
 
provides notice that a surcharge will be assessed and the amount of the surcharge.

The notice shall be posted at the usual place of payment, published on the billing statement of the holder, or published on an internet site where electronic payment is made. However, the surcharge shall not be assessed against the maker if the reason for the dishonor of the check, draft, or order is that the maker has stopped payment pursuant to section 554.4403.
EXPLANATION
   This bill amends a provision in the uniform commercial code (Code section 554.3512) which authorizes the holder of a dishonored check or similar financial instrument to assess a surcharge against its maker not to exceed $30. However, in order to assess the surcharge, there must be a notice posted at the place of payment or published on the holder’s billing statement, indicating the surcharge amount. The bill provides that the same notice must be published on the internet site where electronic payment is made.