2609 AMH

2609 AMH .... H4796.1

HB 2609 - H AMD 503 ADOPTED 2-14-00

By Representative

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 62A.3‑515 and 1995 c 187 s 1 are each amended to read as follows:

(a) If a check as defined in RCW 62A.3‑104 is dishonored by nonacceptance or nonpayment, the payee or ((~~holder of the check is entitled to~~)) person entitled to enforce the check under RCW 62A.3-301 may collect a reasonable handling fee for each instrument. If the check is not paid within fifteen days and after the ((~~holder of the check~~)) person entitled to enforce the check or the person's agent sends a notice of dishonor as provided by RCW 62A.3‑520 to the drawer at the drawer's last known address, and if the instrument does not provide for the payment of interest or collection costs and attorneys' fees, the drawer of the instrument is 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 less, payable to the person entitled to enforce the check. In addition, in the event of court action on the check, the court, after notice and the expiration of the fifteen days, shall award reasonable attorneys' fees, and three times the face amount of the check or three hundred dollars, whichever is less, as part of the damages payable to the ((~~holder of~~)) person enforcing the check. This section does not apply to an instrument that is dishonored by reason of a justifiable stop payment order.

(b)(1) Subsequent to the commencement of an action on the check (subsection (a)) but prior to the hearing, the defendant may tender to the plaintiff as satisfaction of the claim, an amount of money equal to the face amount of the check, a reasonable handling fee, accrued interest, collection costs equal to the face amount of the check not to exceed forty dollars, and the incurred court costs, service costs, and statutory attorneys' fees.

(2) Nothing in this section precludes the right to commence action in a court under chapter 12.40 RCW for small claims.

Sec. 2. RCW 62A.3-522 and 1993 c 229 s 69 are each amended to read as follows:

In addition to sending a notice of dishonor to the drawer of the check under RCW 62A.3-520, the ((~~holder of the check~~)) person sending notice shall execute an affidavit certifying service of the notice by mail. The affidavit of service by mail must be attached to a copy of the notice of dishonor and must be substantially in the following form:

AFFIDAVIT OF SERVICE BY MAIL

I, . . . . . ., hereby certify that on the . . . . . . day of . . . . . ., ((19)) 20. . ., a copy of the foregoing Notice was served on . . . . . . by mailing via the United States Postal Service, postage prepaid, at . . . . . ., Washington.

Dated: . . . . . . . . . . . . . . . .

(Signature)

The ((~~holder~~)) person enforcing the check shall retain the affidavit with the check but shall file a copy of the affidavit with the clerk of the court in which an action on the check is commenced.

Sec. 3. RCW 62A.3-525 and 1993 c 229 s 70 are each amended to read as follows:

No interest, collection costs, and attorneys' fees, except handling fees, are recoverable on any dishonored check under the provisions of RCW 62A.3-515 where ((~~the holder of the check or~~)) a person entitled to such recovery or any agent, employee, or assign ((~~of the holder~~)) has demanded:

(1) Interest or collection costs in excess of that provided by RCW 62A.3-515; or

(2) Interest or collection costs prior to the expiration of fifteen days after the mailing of notice of dishonor, as provided by RCW 62A.3-515 and 62A.3-520; or

(3) Attorneys' fees either without having the fees set by the court, or prior to the expiration of fifteen days after the mailing of notice of dishonor, as provided by RCW 62A.3-515 and 62A.3-520."

Correct the title.