MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Business and Financial Institutions

By: Senator(s) White (5th)

AN ACT TO AMEND SECTION 75-67-519, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A CHECK CASHING LICENSEE ENGAGES IN THE ACTIVITY OF DEFERRING THE DEPOSITS OF PERSONAL CHECKS CASHED FOR CUSTOMERS, THEN THE LICENSEE SHALL ALSO ENGAGE IN THE BUSINESS OF CASHING CHECKS, THE DEPOSITS OF WHICH ARE NOT DEFERRED, FOR CUSTOMERS IN ACCORDANCE WITH SECTION 75-67-517, MISSISSIPPI CODE OF 1972; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 75-67-519, Mississippi Code of 1972, is amended as follows:

75-67-519. (1) A licensee may defer the deposit of a personal check cashed for a customer for up to thirty (30) days under the provisions of this section. However, if a licensee engages in the activity of deferring the deposits of personal checks cashed for customers, then the licensee shall also engage in the business of cashing checks, the deposits of which are not deferred, for customers in accordance with Section 75-67-517.

(2) The face amount of any delayed deposit check cashed under the provisions of this section shall not exceed Four Hundred Dollars ($400.00).

(3) Each 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 as a dollar amount and as an annual percentage rate. The written agreement shall authorize the licensee to defer deposit of the personal check until a specific date not later than thirty (30) days from the date the check is cashed.

(4) A licensee shall not directly or indirectly charge any fee or other consideration for cashing a delayed deposit check in excess of eighteen percent (18%) of the face amount of the check.

(5) 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 delayed deposit check.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.