REPORT TITLE:
Comm. Paper, Dishonored Checks


DESCRIPTION:
Provides assessments and other penalties for dishonored checks.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            936         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO COMMERCIAL PAPER.



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

 1      SECTION 1.  Chapter 490, article 3, Hawaii Revised Statutes,
 
 2 is amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "490:3-     Charges for dishonored checks.  (a)  In an
 
 5 action brought under section 490:3-506, the payee or a holder in
 
 6 due course shall be allowed to assess a reasonable service charge
 
 7 of not more than $20 at any time prior to a judicial hearing;
 
 8 provided notice of the assessment was provided to the maker by
 
 9 the payee prior to acceptance of the check, draft, or order for
 
10 payment.  Upon the date of the hearing of the action, the payee
 
11 or a holder in due course may recover from the maker additional
 
12 damages as specified in section 490:3-506(a) upon conditions
 
13 specified in section 490:3-506(a); provided that the maker fails
 
14 to tender to the payee or a holder in due course an amount of
 
15 money not less than the sum of the check and the service charge,
 
16 regardless of the amount demanded, prior to the commencement of
 
17 the action as provided in section 490:3-506(a)(1).  The treble
 
18 damages provided in section 490:3-506(a) shall be based on the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 amount of the check.
 
 2      (b)  Subsequent to the commencement of the action but prior
 
 3 to the hearing, the maker may tender to the payee or a holder in
 
 4 due course as satisfaction of the claim, an amount as described
 
 5 in section 490:3-506(b) plus the service charge and attorney's
 
 6 fees, if any.
 
 7      (c)  In cases of economic hardship by the maker as provided
 
 8 by section 490:3-506(c), the judgment amount against the maker
 
 9 shall be as provided in section 490:3-506(c) plus the service
 
10 charge and attorney's fees, if any."
 
11      SECTION 2.  New statutory material is underscored.
 
12      SECTION 3.  This Act shall take effect upon its approval.
 
13 
 
14                           INTRODUCED BY:  _______________________