HB6005 96TH GENERAL ASSEMBLY

LRB096 16586 DRJ 31860 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6005

Introduced 2/10/2010, by Rep. Angelo Saviano

SYNOPSIS AS INTRODUCED:

810 ILCS 5/3-806

from Ch. 26, par. 3-806

Amends the Uniform Commercial Code. Provides that any person who issues a converted check, electronic funds transfer, or order for the payment of money (in addition to any person who issues a check or other draft) that is not honored upon presentment because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account, or because the drawer does not have sufficient credit with the drawee, shall be liable in the amount of $25, or for all costs and expenses, including reasonable attorney's fees, incurred by any person in connection with the collection of the amount for which the converted check, electronic funds transfer, or order for the payment of money was written, whichever is greater, and shall be liable for interest upon that amount. Provides that a person who undertakes a nonlitigated collection against the person who issued a converted check, electronic funds transfer, or order for the payment of money that is not honored upon presentment shall make a written demand by certified mail, return receipt requested, delivered to the last known address of that person in order to become eligible for any costs and expenses in excess of $25. Authorizes assessment of a fee or charge not to exceed $4.50 to any person or owner of a commercial checking account or other similar commercial account where a converted check, electronic funds transfer, or order for the payment of money that is deposited into the account is dishonored upon presentment because of insufficient funds or because the drawer does not have an account with the drawee.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Uniform Commercial Code is amended by changing Section 3-806 as follows:

(810 ILCS 5/3-806) (from Ch. 26, par. 3-806)

Sec. 3-806. Any person who issues a check, converted check, electronic funds transfer, order for the payment of money, or other draft that is not honored upon presentment because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account, or because the drawer does not have sufficient credit with the drawee, shall be liable in the amount of $25, or for all costs and expenses, including reasonable attorney's fees, incurred by any person in connection with the collection of the amount for which the check, converted check, electronic funds transfer, order for the payment of money, or other draft was written, whichever is greater, and shall be liable for interest upon the amount of the check, converted check, electronic funds transfer, order for the payment of money, or other draft at the rate provided in subsection (1) of Section 4 of the Interest Act. Costs and expenses shall include reasonable costs and expenses incurred in the nonlitigated collection of the check, converted check, electronic funds transfer, order for the payment of money, or other draft.

A person who undertakes a nonlitigated collection against the person who issued a check, converted check, electronic funds transfer, order for the payment of money, or other draft that is not honored upon presentment shall make a written demand by certified mail, return receipt requested, delivered to the last known address of that person in order to become eligible for any costs and expenses in excess of $25. The written demand shall demand payment within 30 days of the mailing of the demand and shall include notice of liability for the costs and expenses.

A fee or charge not to exceed $4.50 may be assessed to any person or owner of a commercial checking account or other similar commercial account where a check, converted check, electronic funds transfer, order for the payment of money, or other draft that is deposited into the account is dishonored upon presentment because of insufficient funds or because the drawer does not have an account with the drawee; provided, however, that, the limitation on the fee or charge specified in this paragraph does not apply to any fee or charge assessed to any bank or other depository institution or to any non-commercial checking account or other similar non-commercial account.

(Source: P.A. 87-582; 87-624.)