HOUSE BILL No. 5075

 

September 25, 2003, Introduced by Reps. Spade, Sheltrown, Law, Bieda, Wojno, Farrah, Plakas, Meyer, Clack and Sak and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1962 PA 174, entitled                                             

                                                                                

    "Uniform commercial code,"                                                  

                                                                                

    by amending section 4110 (MCL 440.4110), as added by 1993 PA                

                                                                                

    130.                                                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 4110.  (1) "Agreement for electronic presentment" means                

                                                                                

2   an agreement, clearing-house rule, or  Federal Reserve  federal             

                                                                                

3   reserve regulation or operating circular, providing that                    

                                                                                

4   presentment of an item may be made by transmission of an image of           

                                                                                

5   an item or information describing the item ("presentment notice")           

                                                                                

6   rather than delivery of the item itself.   The  An agreement for            

                                                                                

7   electronic presentment shall provide a procedure that prohibits             

                                                                                

8   presentment by transmission of an image of an item or presentment           

                                                                                

9   notice if the drawer of the item requests that electronic                   

                                                                                

10  presentment not be used for the drawer's items and requires                 

                                                                                


                                                                                

1   written notice to each drawer of his or her right to make that              

                                                                                

2   request.  An agreement for electronic presentment may provide for           

                                                                                

3   procedures governing retention, presentment, payment, dishonor,             

                                                                                

4   and other matters concerning items subject to the agreement.                

                                                                                

5       (2) Presentment of an item pursuant to an agreement for                     

                                                                                

6   presentment is made when the presentment notice is received.                

                                                                                

7       (3) If presentment is made by presentment notice, a reference               

                                                                                

8   to "item" or "check" in this article means the presentment notice           

                                                                                

9   unless the context otherwise indicates.