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5 AN ACT RELATING TO FINANCIAL INSTITUTIONS; PERMITTING CREDITORS TO
6 CONTRACT FOR FEES OR SERVICE CHARGES FOR DISHONORED INSTRUMENT.
7 This act affects sections of Utah Code Annotated 1953 as follows:
9 7-15-4, Utah Code Annotated 1953
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 7-15-4 is enacted to read:
12 7-15-4. Terms regarding dishonored instruments in contracts for the extension of
14 (1) For purposes of this section "extension of credit" means the right to defer payment of
15 debt or to incur debt and defer its payment.
16 (2) (a) A contract for the extension of credit may provide for the payment of any fee or
17 service charge for a check, draft, order, or other instrument received in payment on the contract
18 for the extension of credit if the check, draft, order, or other instrument is dishonored.
19 (b) Subsection 7-15-1(2) does not apply to a contract described in Subsection (2)(a).
20 (3) If in accordance with Subsection 7-15-1(3) a holder of a dishonored check, draft, order,
21 or other instrument provides notice of an action for payment under a contract described in
22 Subsection (2)(a), the written notice shall state the fee or service charge due under the contract
23 described in Subsection (2)(a).
Legislative Review Note
as of 2-16-98 2:31 PM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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