MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Business and Financial Institutions

By: Senator(s) Browning (By Request)

AN ACT TO REQUIRE ANY BANK, SAVINGS AND LOAN ASSOCIATION, OR SAVINGS BANK WHICH COMMUNICATES TO A BUSINESS OWNER OR OPERATOR THAT AN ACCOUNT HAS SUFFICIENT FUNDS TO COVER THE AMOUNT OF A CHECK WRITTEN ON THE ACCOUNT TO PAY THAT CHECK WHEN PRESENTED FOR PAYMENT BY THE BUSINESS OWNER OR OPERATOR; AND FOR RELATED PURPOSES.

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

SECTION 1. Any bank which communicates to a business owner or operator that an account has sufficient funds to cover the amount of a check written on the account shall not accept a stop payment order from the accountholder on that check, and shall be required to pay that check when presented for payment by the business owner or operator regardless of whether there are sufficient funds in the account at the time of presentation for payment.

SECTION 2. Any savings and loan association which communicates to a business owner or operator that an account has sufficient funds to cover the amount of a check written on the account shall not accept a stop payment order from the accountholder on that check, and shall be required to pay that check when presented for payment by the business owner or operator regardless of whether there are sufficient funds in the account at the time of presentation for payment.

SECTION 3. Any savings bank which communicates to a business owner or operator that an account has sufficient funds to cover the amount of a check written on the account shall not accept a stop payment order from the accountholder on that check, and shall be required to pay that check when presented for payment by the business owner or operator regardless of whether there are sufficient funds in the account at the time of presentation for payment.

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.