Senate Bill 2294
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Florida Senate - 1999 SB 2294
By Senator Campbell
33-1400-99
1 A bill to be entitled
2 An act relating to deferred presentment of
3 checks; creating part IV of chapter 560, F.S.;
4 defining the terms "deferred presentment,"
5 "maker," "registrant," "renewal," and "service
6 fee"; providing conditions for engaging in
7 deferred presentment transactions; providing an
8 effective date.
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10 Be It Enacted by the Legislature of the State of Florida:
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12 Section 1. Part IV of chapter 560, Florida Statutes,
13 consisting of sections 560.401, 560.402, and 560.403, Florida
14 Statutes, is created to read:
15 560.401 Short title.--This part may be cited as the
16 "Deferred Presentment Act."
17 560.402 Definitions.--In addition to the definitions
18 provided in ss. 560.103 and 560.301, as used in this part, the
19 term:
20 (1) "Deferred presentment" means a transaction in
21 which a check is cashed by a person licensed under s. 560.301
22 and, by mutual agreement between the registrant and the maker
23 of the check, its presentment or negotiation is deferred for a
24 period of time not to exceed 31 days. A deferred presentment
25 transaction that complies with the rules contained in s.
26 560.403 may not be construed to be a loan under state law.
27 (2) "Maker" means any person who writes a personal
28 check and upon whose account the check is drawn.
29 (3) "Registrant" means a person registered under s.
30 560.301.
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Florida Senate - 1999 SB 2294
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1 (4) "Renewal" means the termination of an existing
2 deferred presentment agreement solely by the payment of fees
3 then due the licensee and the substitution of a new check
4 drawn by the maker pursuant to a new deferred presentment
5 agreement.
6 (5) "Service fee" means the fee authorized for the
7 deferral of the presentation of a check pursuant to this part.
8 This fee does not constitute interest for any purpose.
9 560.403 Transactions.--A person may engage in deferred
10 presentment transactions, subject to the following:
11 (1) A person may not engage in deferred presentment
12 transactions without first obtaining registration under the
13 provisions of s. 560.301.
14 (2) A registrant may not charge fees in excess of 20
15 percent of the amount paid to the maker of the check whose
16 presentment or negotiation is deferred.
17 (3) A deferred presentment agreement may not be for a
18 term in excess of 31 days.
19 (4) Makers who write a check for a deferred
20 presentment transaction on an acocunt that was closed on the
21 date of the transaction or that is closed before the agreed
22 upon negotiation date of the deferred presentment, are subject
23 to all civil and criminal penalties available at law. If a
24 check is returned to a registrant from a payer financial
25 institution due to insufficient funds or a closed account or
26 stop payment order, the registrant may pursue all legally
27 available civil means to collect the check including, without
28 limitation, the imposition of all charges imposed on the
29 registrant by the payer financial institution. Except as
30 otherwise provided in this part, an individual who issues a
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Florida Senate - 1999 SB 2294
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1 personal check to a licensee under a deferred presentment
2 agreement is not subject to criminal penalty.
3 (5) Proceeds to the maker in a deferred presentment
4 transaction may be made in the form of the registrant's
5 business check or money order if the person is licensed under
6 s. 560.200. However, no additional fee may be charged by a
7 registrant for cashing the registrant's check.
8 (6) A registrant may not renew any deferred
9 presentment transaction more than two consecutive times, after
10 which the deferred presentment check must be paid in cash or
11 its equivalent by the maker or deposited by the registrant.
12 Once the issuer of a check has completed a deferred
13 presentment transaction with a licensee, he or she may enter
14 into a new agreement for deferred presentment services with
15 the licensee. A transaction is completed when a check is
16 presented for payment, is deposited, or is redeemed by the
17 issuer by payment in full in cash to the licensee.
18 (7) The face amount of a check taken for deferred
19 presentment may not exceed $500, exclusive of the fees allowed
20 by this section.
21 (8) Each deferred presentment transaction must be
22 documented by a written agreement. The written agreement must
23 contain the name or trade name of the registrant, the
24 transaction date, the amount of the check, and a statement of
25 the total amount of fees charged, expressed both as a dollar
26 amount and its effective annual percentage rate. The written
27 agreement must authorize the registrant to defer presentment
28 or negotiation of the check until after a specific date, not
29 later than 31 days from the date the check is accepted by the
30 registrant.
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Florida Senate - 1999 SB 2294
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1 (9) A registrant or person related to the registrant
2 by common ownership or control may not have outstanding more
3 than two checks from any one customer at any one time; nor may
4 the aggregate face value of all outstanding checks from any
5 one customer payable to any registrant exceed $1,000. Each
6 registrant may rely on a written representation of a customer
7 regarding the existence of any outstanding checks for deferred
8 presentment.
9 (10) A registrant must provide a notice in a prominent
10 place on each deferred presentment agreement in at least
11 10-point type in substantially the following form:
12
13 NOTICE
14 STATE LAW PROHIBITS YOU FROM HAVING MORE THAN
15 TWO DEFERRED PRESENTMENT TRANSACTIONS TOTALING
16 MORE THAN $1,000 OUTSTANDING AT ANY TIME.
17 FAILURE TO OBEY THIS LAW COULD CREATE SEVERE
18 FINANCIAL HARDSHIP FOR YOU AND YOUR FAMILY.
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20 (11) A registrant may charge only those fees
21 specifically authorized in this section.
22 Section 2. This act shall take effect upon becoming a
23 law.
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26 SENATE SUMMARY
27 Provides conditions for transactions involving the
deferred presentment of checks.
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