FINAL BILL REPORT

                  HB 1400

                          C 53 L 97

                     Synopsis as Enacted

Brief Description:  Removing a termination date in the bank statement rule.

Sponsors:  Representatives Benson, L. Thomas, Wolfe, Zellinsky, Sheahan and Appelwick.

House Committee on Financial Institutions & Insurance

Senate Committee on Financial Institutions, Insurance & Housing

Background:  In 1993, Uniform Commercial Code Articles 3 and 4 were substantially revised in accordance with recommendations of the National Conference of Commissioners on Uniform State Laws.  One of the provisions in Article 4 relates to information that must be provided on a bank checking account statement.  A financial institution must either:  (1) provide the check paid or a copy of the check; or (2) provide information on the statement sufficient to allow the customer to reasonably define the check paid.  Until January 1, 1998, the statement provides sufficient information if it provides the check number, amount, date of payment, and a phone number the customer may call to request a copy of the check.

Summary:  The January 1, 1998 expiration date is deleted from the Uniform Commercial Code provision establishing what information is sufficient on a bank checking account statement.  A checking account statement will continue to provide sufficient information if it provides the check number, amount, the date of payment, and a phone number the customer may call to request a copy of the check.

Votes on Final Passage:

House  95 0

Senate 47 0

Effective:July 27, 1997