MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Business and Financial Institutions; Judiciary, Division B
By: Senator(s) McDaniel
AN ACT TO AMEND SECTIONS 97-19-55 AND 97-19-57, MISSISSIPPI CODE OF 1972, TO REVISE THE BAD CHECK AND INSUFFICIENT FUNDS LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 97-19-55, Mississippi Code of 1972, is amended as follows:
97-19-55. (1) It shall be unlawful for any person with fraudulent intent:
(a) To make, draw,
issue, utter or deliver any check, draft or order * * * drawn on any real or fictitious bank, corporation,
firm or person, in exchange for anything of value, whether the exchange is
contemporaneous or not, with intent to defraud, knowing at the time of
making, drawing, issuing, uttering or delivering * * * the check, draft or order that the
maker or drawer has not sufficient credit or funds in or on deposit with * * * the bank, corporation, firm or
person for the payment of * * *such the check, draft or order in full, and all other
checks, drafts or orders upon * * * funds deposited then outstanding,
or that the account is fictitious, or is one in which the maker or drawer has
no interest or no authority to issue a check, draft or order;
(i) This section applies to a check, draft or order tendered for satisfaction, in whole or in part, of:
1. Payments due on installment contracts, open accounts or any other obligation for which the creditor has authorized periodic payments of the extension of time in which to pay;
2. A state tax obligation;
(ii) This section applies to a check, draft or order to obtain the use of property or credit extended by any licensed gaming establishment;
(iii) For purposes of this section, any check, draft or order tendered for payment of any tax, fee, fine, penalty or other obligation to the state or a political subdivision of the state constitutes issuing a check, draft or order in exchange for anything of value.
(b) To close an
account without leaving sufficient funds to cover all outstanding checks
written on * * *
the account.
(2) For purposes of Sections 97-19-55 through 97-19-69:
(a) "Check" includes a casino marker issued to any licensed gaming establishment.
(b) "Credit" means an arrangement or understanding with a bank, corporation, firm or person for the payment of a check or other instrument.
(c) "State tax obligation" means a state tax, interest, penalty, fee or any contract, installment agreement or other obligation arising out of the state tax obligation.
SECTION 2. Section 97-19-57, Mississippi Code of 1972, is amended as follows:
97-19-57. (1) As against
the maker or drawer thereof, the making, drawing, issuing, uttering or
delivering of a check, draft or order, payment of which is refused by the
drawee, shall be prima facie evidence and create a presumption of intent to
defraud and of knowledge of insufficient funds in, or on deposit with, * * * the bank, corporation, firm or
person, provided * * *
the maker or drawer shall not have paid the holder thereof the amount
due thereon, together with a service charge of Forty Dollars ($40.00), within * * * ten (10) days after * * * notice that * * * the check, draft or order has not
been paid by the drawee has been deposited by certified mail in the United
States mail system addressed to the maker or drawer either at the address shown
on the instrument or the last-known address for the person shown on the records
of the bank, corporation, firm or person upon which the instrument is drawn or
within ten (10) days after delivery or personal tender or the written notice to
the maker or drawer by the payee or the payee's agent.
(2) For purposes of Section 11-7-12, the form of the notice provided for in subsection (1) of this section shall be sent by regular mail and shall be substantially as follows: "This statutory notice is provided pursuant to Section 97-19-57, Mississippi Code of 1972. You are hereby notified that a check, draft or order numbered _____, apparently issued by you on _____ (date), drawn upon _____ (name of bank), and payable to _____, has been dishonored. Pursuant to Mississippi law, you have fifteen (15) days from receipt of this notice to tender payment of the full amount of such check, draft or order, plus a service charge of Forty Dollars ($40.00), the total amount due being $_____. Failure to pay this amount in full within the time specified above shall be prima facie evidence of and create a presumption of both the intent to defraud and the knowledge of insufficient funds in, or on deposit with, such bank in violation of Section 97-19-55."
(3) For purposes of Section
97-19-67, the form of the notice provided for in subsection (1) of this section
shall be sent by * * *
certified mail, supported by an affidavit of service by mailing, or
personal service, and shall be substantially as follows: "This
statutory notice is provided pursuant to Section 97-19-57, Mississippi Code of
1972. You are hereby notified that a check, draft or order numbered _____,
apparently issued by you on _____ (date), drawn upon _____ (name of bank), and
payable to _____, has been dishonored. Pursuant to Mississippi law, you have * * * ten (10) days from * * * [mailing] or [personal delivery]
(cross out one) of this notice to tender payment of the full amount of such
check, draft or order, plus a service charge of Forty Dollars ($40.00), the
total amount due being $_____. Unless this amount is paid in full within the
time specified above, the holder may assume that you delivered the instrument
with intent to defraud and may turn over the dishonored instrument and all
other available information relating to this incident to the proper authorities
for criminal prosecution."
(4) If any notice is returned undelivered to the sender after such notice was mailed to the address printed on the check, draft or order, or to the address given by the accused at the time of issuance of the instrument, such return shall be prima facie evidence of the maker's or drawer's intent to defraud.
(5) Affidavit of service by mail shall be adequate if made in substantially the following form:
"STATE OF ____________
COUNTY OF ____________
________________, being first duly sworn on oath, deposes and states that he/she is at least eighteen (18) years of age and that on (date)______________, 2___, he/she served the attached Notice of Dishonor by placing a true and correct copy thereof securely enclosed in an envelope addressed as follows:
______________________________
______________________________
______________________________
and deposited the same, postage prepaid, in the United States mail at ________________________, __________________________.
__________________________________
(signature)
Subscribed to and sworn before me, this the ________ day of _____________________, 2___.
_________________________________
(Notary Public)
My commission expires:
(SEAL)"
(6) Without in any way limiting the provisions of this section, this section shall apply to a draft for the payment of money given for a motor vehicle even if such payment is conditioned upon delivery of documents necessary for transfer of a valid title to the purchaser.
SECTION 3. This act shall take effect and be in force from and after July 1, 2013.