GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 1137

Short Title:  Prohibit Cash-Out Transactions.	(Public)

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Sponsors: Senators Martin of Guilford, Shaw of Guilford; Ballance, Dannelly, Forrester, Kinnaird, Odom, Phillips, Purcell, Rand, Soles, Warren, and Wellons.

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Referred to:  Commerce.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO REQUIRE LICENSEES TO DEPOSIT CHECKS AFTER THE CHECKS HAVE BEEN CASHED AND TO CLARIFY THE AGGREGATE AMOUNT ALLOWED FOR POSTDATED OR DELAYED DEPOSIT CHECKS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 53-281 reads as rewritten:
"§ 53-281.  Postdated or delayed deposit checks.
(a)	A licensee may defer the deposit of a personal check cashed for a customer for up to 31 days pursuant to the provisions of this section.
(b)	The face amount of postdated or delayed deposit checks cashed pursuant to this section for a customer shall not exceed in the aggregate three hundred dollars ($300.00).
(c)	Each postdated or delayed deposit check cashed by a licensee shall be documented by a written agreement that has been signed by the customer and the licensee. The written agreement shall contain a statement of the total amount of any fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement shall authorize the licensee to defer deposit of the personal check until a specific date not later than 31 days from the date the check is cashed.
(d)	A licensee shall not directly or indirectly charge any fee or other consideration for cashing a postdated or delayed deposit check in excess of fifteen per cent (15%) of the face amount of the check.
(e)	No check cashed under the provisions of this section shall be repaid by the proceeds of another check cashed by the same licensee or any affiliate of the licensee. A licensee shall not, for any consideration, renew or otherwise extend any postdated or delayed check or withhold such check from deposit for any period beyond the time set forth in the written agreement with the customer.
(f)	If a licensee has delayed deposit of a check pursuant to this section, the licensee must deposit the check not later than 31 days from the date the check is cashed and shall not return that check to the customer in return for cash. The Commissioner may order and impose civil penalties upon any person required to be licensed under this Article for violations of this subsection pursuant to G.S. 53-286 and may suspend or revoke the license of the person for violations of this subsection pursuant to G.S. 53-284."
Section 2.  This act becomes effective October 1, 1999, and applies to offenses committed on or after that date.