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H.B. 463

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PAYMENTS ON CREDIT CONTRACTS

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1998 GENERAL SESSION

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STATE OF UTAH

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Sponsor: Kevin S. Garn

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:
8    ENACTS:
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
13     credit.
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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