S-3812               _______________________________________________

                                                   SENATE BILL NO. 5040

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Moore, Bender, Deccio and Sellar

Read first time 1/24/86 and referred to Committee on Financial Institutions.

AN ACT Relating to commercial paper; and amending RCW 62A.3-515.

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:

          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 from the drawer.  No fee or charge may be assessed to any person other than the drawer who issues a check that is dishonored upon presentment because of insufficient funds or because the drawer does not have an account with the drawee.  However, a bank or holder of a dishonored instrument may charge a person other than the drawer of the check if it is shown that the party so charged knew or should have known for reasons such as previous history or failure to request a reasonably acceptable form of identification that the instrument would not be honored.  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.