AN ACT Relating to checks; amending RCW 62A.4-213; and adding a new section to Article 4 of Title 62A RCW.

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

NEW SECTION. Sec. 1. A new section is added to Article 4 of Title 62A RCW to read as follows:

(1) Except as provided in subsection (2) of this section, a bank shall make funds available when the funds have been deposited in an account in that bank within the following time periods:

(a) For any item drawn on the particular bank, one business day;

(b) For any item drawn on an institution located in this state, three business days; and

(2) Subsection (1) of this section does not apply to:

(a) Items in the aggregate for any one customer in an amount greater than two thousand five hundred dollars other than items drawn on the same institution in which the item is being deposited, but if requested by the customer, the customer shall be entitled to withdraw up to two thousand five hundred dollars within the time periods in subsection (1) of this section;

(b) Instances where the bank has received notice that the item has been dishonored;

(c) Instances where the bank has received notice that funds for an item are not collectible or where the bank has good and sufficient reason to doubt the collectibility of funds for an item; and

(d) Items drawn on institutions outside of the United States.

(3) Each bank shall provide clear and conspicuous notice in writing to its account holders of the time periods for the availability of funds under this section and the exceptions under this section. The notice shall include the time the bank closes business with respect to items received for deposit. The notice shall be provided before a customer opens an account and shall be mailed to all existing customers within three months of the effective date of this act. The notice shall be posted in a conspicuous manner at each place operated by the bank where customers transact business. In addition every deposit slip or form shall contain the following notice printed in a conspicuous manner: "YOUR DEPOSIT MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL. CONSULT POSTED NOTICES FOR FURTHER INFORMATION."

(4) In addition to any other remedies, violation of this section shall be an unfair or deceptive practice under chapter 19.68 RCW, the consumer protection act.

Sec. 2. Section 4-213, chapter 157, Laws of 1965 ex. sess. and RCW 62A.4-213 are each amended to read as follows:

(1) An item is finally paid by a payor bank when the bank has done any of the following, whichever happens first:

(a) paid the item in cash; or

(b) settled for the item without reserving a right to revoke the settlement and without having such right under statute, clearing house rule or agreement; or

(c) completed the process of posting the item to the indicated account of the drawer, maker or other person to be charged therewith; or

(d) made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearing house rule or agreement.

Upon a final payment under subparagraphs (b), (c) or (d) the payor bank shall be accountable for the amount of the item.

(2) If provisional settlement for an item between the presenting and payor banks is made through a clearing house or by debits or credits in an account between them, then to the extent that provisional debits or credits for the item are entered in accounts between the presenting and payor banks or between the presenting and successive prior collecting banks seriatim, they become final upon final payment of the item by the payor bank.

(3) If a collecting bank receives a settlement for an item which is or becomes final (subsection (3) of RCW 62A.4-211, subsection (2) of RCW 62A.4-213) the bank is accountable to its customer for the amount of the item and any provisional credit given for the item in an account with its customer becomes final.

(4) Subject to any right of the bank to apply the credit to an obligation of the customer, credit given by a bank for an item in an account with its customer becomes available for withdrawal as of right

((~~(a) in any case where the bank has received a provisional settlement for the item,‑-when such settlement becomes final and the bank has had a reasonable time to learn that the settlement is final;~~

~~(b) in any case where the bank is both a depositary bank and a payor bank and the item is finally paid,‑-at the opening of the bank's second banking day following receipt of the item~~)) under section 1 of this 1986 act.

(5) A deposit of money in a bank is final when made but, subject to any right of the bank to apply the deposit to an obligation of the customer, the deposit becomes available for withdrawal as of right at the opening of the bank's next banking day following receipt of the deposit.

NEW SECTION. Sec. 3. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.