093_HB3602

 
                                     LRB093 09720 AMC 09960 b

 1        AN ACT concerning business transactions.

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

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

 6        (810 ILCS 5/3-806) (from Ch. 26, par. 3-806)
 7        Sec. 3-806.  Any person who issues a check or other draft
 8    that  is not honored upon presentment because the drawer does
 9    not have an account with the drawee, or  because  the  drawer
10    does not have sufficient funds in his account, or because the
11    drawer does not have sufficient credit with the drawee, shall
12    be  liable  (i)  in  the amount of $5 if the insufficiency is
13    less than $200 or in the amount of $25 if  the  insufficiency
14    is  $200  or  more,  or  (ii)  for  all  costs  and expenses,
15    including reasonable attorney's fees, incurred by any  person
16    in connection with the collection of the amount for which the
17    check  or  other draft was written, whichever is greater, and
18    shall be liable for interest upon the amount of the check  or
19    other draft at the rate provided in subsection (1) of Section
20    4  of  the  Interest  Act.   Costs and expenses shall include
21    reasonable costs and expenses incurred  in  the  nonlitigated
22    collection of the check or other draft.
23        A person who undertakes a nonlitigated collection against
24    the  person  who  issued  a  check or other draft that is not
25    honored upon presentment  shall  make  a  written  demand  by
26    certified  mail,  return  receipt requested, delivered to the
27    last known address of that person in order to become eligible
28    for any costs and expenses in excess  of  $25.   The  written
29    demand  shall demand payment within 30 days of the mailing of
30    the demand and shall include  notice  of  liability  for  the
31    costs and expenses.
 
                            -2-      LRB093 09720 AMC 09960 b
 1        A  fee  or  charge not to exceed $4.50 may be assessed to
 2    any person or owner of a commercial checking account or other
 3    similar commercial account where a check or other draft  that
 4    is  deposited into the account is dishonored upon presentment
 5    because of insufficient funds or because the drawer does  not
 6    have an account with the drawee; provided, however, that, the
 7    limitation  on  the fee or charge specified in this paragraph
 8    does not apply to any fee or charge assessed to any  bank  or
 9    other   depository   institution  or  to  any  non-commercial
10    checking account or other similar non-commercial account.
11    (Source: P.A. 87-582; 87-624.)