CERTIFICATION OF ENROLLMENT

 

                   ENGROSSED HOUSE BILL 2609

 

 

                   Chapter 215, Laws of 2000

 

 

                        56th Legislature

                      2000 Regular Session

 

 

DISHONORED CHECKS

 

 

 

                    EFFECTIVE DATE:  6/8/00

Passed by the House March 6, 2000

  Yeas 98   Nays 0

 

 

             CLYDE BALLARD

Speaker of the House of Representatives

     

 

 

              FRANK CHOPP

Speaker of the House of Representatives

 

 

 

Passed by the Senate March 3, 2000

  Yeas 45   Nays 0

             CERTIFICATE

 

We, Timothy A. Martin and Cynthia Zehnder, Co-Chief Clerks of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 2609  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

           CYNTHIA ZEHNDER

                          Chief Clerk

 

 

          TIMOTHY A. MARTIN

                          Chief Clerk

               BRAD OWEN

President of the Senate

 

 

 

Approved March 30, 2000 Place Style On Codes above, and Style Off Codes below.            

                                FILED                

 

           March 30, 2000 - 2:18 p.m.

 

              GARY LOCKE

Governor of the State of Washington

                 Secretary of State

                 State of Washington


          _______________________________________________

 

                     ENGROSSED HOUSE BILL 2609

          _______________________________________________

 

             Passed Legislature - 2000 Regular Session

 

                     AS AMENDED BY THE SENATE

 

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives Carrell, Constantine, Mulliken and G. Chandler

 

Read first time 01/18/2000.  Referred to Committee on Judiciary.

Allowing agents to give notice of dishonored checks.       


    AN ACT Relating to notices of dishonored checks; amending RCW 62A.3-515, 62A.3-522, and 62A.3-525; and adding a new section to chapter 26.23 RCW.

 

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

 

    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.

 

    NEW SECTION.  Sec. 4.  A new section is added to chapter 26.23 RCW to read as follows:

    For any payment made by a check as defined in RCW 62A.3-104, if the instrument is dishonored under RCW 62A.3-515, the costs and fees authorized under RCW 62A.3-515 apply.  The department may establish procedures and adopt rules to enforce this section.


    Passed the House March 6, 2000.

    Passed the Senate March 3, 2000.

Approved by the Governor March 30, 2000.

    Filed in Office of Secretary of State March 30, 2000.