AN ACT Relating to checks; adding a new section to chapter 30.04 RCW; adding a new section to chapter 31.12 RCW; adding a new section to chapter 32.04 RCW; adding a new section to chapter 33.04 RCW; and adding a new section to chapter 39.58 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 30.04 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

(c) For any item drawn on an institution located outside of this state but within the United States, seven business days.

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

(a) Items 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.

NEW SECTION. Sec. 2. A new section is added to chapter 31.12 RCW to read as follows:

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

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

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

(c) For any item drawn on an institution located outside of this state but within the United States, seven business days.

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

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

(c) Instances where the credit union has received notice that funds for an item are not collectible or where the credit union 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 credit union 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 credit union 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 credit union 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.

NEW SECTION. Sec. 3. A new section is added to chapter 32.04 RCW to read as follows:

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

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

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

(c) For any item drawn on an institution located outside of this state but within the United States, seven business days.

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

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

(c) Instances where the savings bank has received notice that funds for an item are not collectible or where the savings 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 savings 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 savings 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 savings 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.

NEW SECTION. Sec. 4. A new section is added to chapter 33.04 RCW to read as follows:

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

(a) For any item drawn on the particular savings and loan association, one business day;

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

(c) For any item drawn on an institution located outside of this state but within the United States, seven business days.

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

(b) Instances where the savings and loan association has received notice that the item has been dishonored;

(c) Instances where the savings and loan association has received notice that funds for an item are not collectible or where the savings and loan association 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 savings and loan association 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 savings and loan association 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 savings and loan association 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.

NEW SECTION. Sec. 5. A new section is added to chapter 39.58 RCW to read as follows:

A financial institution shall not qualify as a public depository unless it complies with the requirements of this section.

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

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

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

(c) For any item drawn on an institution located outside of this state but within the United States, seven business days.

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

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

(c) Instances where the financial institution has received notice that funds for an item are not collectible or where the financial institution 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 financial institution 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 financial institution 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 financial institution 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."

NEW SECTION. Sec. 6. 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.