MISSISSIPPI LEGISLATURE

2003 Regular Session

To: Banks and Banking

By: Representative Chism

House Bill 477

AN ACT TO PROHIBIT FINANCIAL INSTITUTIONS FROM CHARGING THEIR CUSTOMERS A FEE FOR PROCESSING INSURANCE DRAFTS PAYABLE TO THE CUSTOMER FOR DAMAGE SUSTAINED IN A NATURAL DISASTER; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  A financial institution shall not charge a fee to a customer of the financial institution for cashing, handling or processing a draft from an insurance company that is payable to the customer for damage sustained by the customer in a natural disaster, such as a hurricane, flood, tornado, wind, ice storm or earthquake.

     (2)  As used in this section, the following terms shall have the following meanings:

          (a)  "Customer" means an individual who has a checking or savings account at a financial institution.

          (b)  "Financial institution" means:

               (i)  Any bank, savings association, savings and loan association, savings bank or credit union incorporated under the laws of the State of Mississippi that offers checking or savings accounts to Mississippi residents;

               (ii)  Any bank, savings association, savings and loan association or credit union incorporated under the laws of the United States and having an office in Mississippi that offers checking or savings accounts to Mississippi residents; and

               (iii)  Any bank, savings association, savings and loan association, savings bank or credit union incorporated under the laws of another state and having an office in Mississippi that offers checking or savings accounts to Mississippi residents.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2003.