_______________________________________________

                                ENGROSSED SUBSTITUTE SENATE BILL NO. 3416

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senate Committee on Financial Institutions (originally sponsored by Senators Moore, Rasmussen, Halsan, Warnke and McDonald)

Read first time 2/22/85.

AN ACT Relating to negotiable instruments; amending RCW 62A.3-515 and 62A.3-520; and providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 23, Laws of 1967 ex. sess. as last amended by section 1, chapter 254, Laws of 1981 and RCW 62A.3-515 are each amended to read as follows:

(1) Whenever a check as defined in RCW  62A.3-104 has been dishonored by nonacceptance or nonpayment the payee or holder of the check is entitled to collect a reasonable handling fee for each such instrument.  When such check  has not been paid within fifteen days and after the holder of such check sends such notice of dishonor as provided by RCW  62A.3-520 to the drawer at his last known address, then if the instrument does not provide for the payment of interest, or collection costs and attorneys fees, the drawer of such instrument shall also be liable for payment of interest at the rate of twelve percent per annum from the date of dishonor and cost of collection not to exceed forty dollars or the face amount of the check, whichever is the lesser.  In addition, in the event of court action on the check the court, after such notice and the expiration of said fifteen days, shall award a reasonable attorneys fee as part of the damages payable to the holder of the check.  This section shall not apply to any instrument which has been dishonored by reason of any justifiable stop payment order.

(2)(a) In any action against a person who makes any check as defined in RCW 62A.3-104 brought no sooner than thirty days after notice of dishonor has been sent for the payment of money which has been dishonored for lack of funds or credit to pay the same, or because the maker has no account with the drawee, the payee or holder may recover from the defendant damages in an amount not to exceed one hundred dollars.

(b) Subsequent to the commencement of the action but prior to the hearing, the defendant may tender to the plaintiff as satisfaction of the claim, an amount of money equal to the sum of the amount of the check and the incurred court and service costs.

(c) Nothing in this section precludes the right to commence action in any court under chapter 12.40 RCW for small claims.  The remedies in this subsection are in addition to any other rights granted in subsection (1) of this section.

        Sec. 2.  Section 2, chapter 62, Laws of 1969 as amended by section 2, chapter 254, Laws of 1981 and RCW 62A.3-520 are each amended to read as follows:

          The notice of dishonor shall be sent by certified mail to the drawer at his or her last known address, and said notice shall be substantially in the following form:

NOTICE OF DISHONOR OF CHECK

          A check drawn by you and made payable by you to .......... in the amount of .......... has not been accepted for payment by .......... , which is the drawee bank designated on your check.  This check is dated .......... , and it is numbered, No. ..... .

          You are CAUTIONED that unless you pay the amount of this check ((within fifteen days after the date this letter is postmarked)), you may very well have to pay the following additional amounts:

          (1) Costs of collecting the amount of the check, including an attorney's fee which will be set by the court if payment is not made within fifteen days after the date this letter is postmarked; ((and))

          (2) Interest on the amount of the check which shall accrue at the rate of twelve percent per annum from the date of dishonor if payment is not made within fifteen days after the date this letter is postmarked;

(3) One hundred dollars in any legal action brought at least thirty days after the date this letter is postmarked.

          You are advised to make your payment to .......... at the following address:  .................... .