Repeals drop-dead date. Allows multiple deferred deposit checks to be issued for cashing. Limits the total dollar value of deferred deposit checks per customer to $600. Allows an administrative/collection fee to be imposed. Increases check return fee to $35 and deference period to 36 days.

A BILL FOR AN ACT

SECTION 1. Act 146, Session Laws of Hawaii 1999, section 1, is amended by:

1. Amending subsection (b) of section -4, Hawaii Revised Statutes, to read as follows:

"(b) Each deferred deposit shall be made pursuant to a written agreement that has been signed by the customer and the check casher or an authorized representative of the check casher. The written agreement shall contain a statement of the total amount of any fees charged for the deferred deposit, expressed both in United States currency and as an annual percentage rate. The written agreement shall authorize the check casher to defer deposit of the personal check until a specific date not later than [thirty-one] thirty-six days from the date the written agreement was signed. The written agreement shall not permit the check casher to accept collateral."

2. Amending subsection (d) of section -4, Hawaii Revised Statutes, to read as follows:

"(d) A check casher shall not enter into an agreement for deferred deposit with a customer [during the period of time that an earlier agreement for a deferred deposit for the same customer is in effect. A deferred deposit transaction shall not be repaid, refinanced, or consolidated by or with the proceeds of another deferred deposit transaction.] if, by entering into the agreement, the total aggregate value of agreements for deferred deposits with the same customer will exceed $600 at any time."

3. Amending subsection (e) of section -4, Hawaii Revised Statutes, to read as follows:

"(e) A check casher who enters into a deferred deposit agreement and accepts a check passed on insufficient funds, or any assignee of that check casher, shall not be entitled to recover damages in any action brought pursuant to or governed by chapter 490. Instead, the check casher may charge and recover a fee for the return of a dishonored check in an amount not greater than [$20.] $35. The check casher shall notify the customer by certified mail that the customer's check has been returned. If the customer fails to pay the balance of the check and any applicable fees within fifteen days of receiving the notification, the check casher may charge and recover a fee for the collection of the unpaid balance and fees in an amount not greater than $40."

SECTION 2. Act 146, Session Laws of Hawaii 1999, is amended by amending section 2 to read as follows:

"SECTION 2. This Act shall take effect on July 1, 1999[, and shall be repealed on July 1, 2001]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.