SB 279 -- DEMAND DRAFTS

SPONSOR:  Taylor (Wasson)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Judiciary by a vote of 13 to 0.

This bill changes the laws regarding the Uniform Commercial Code
relating to negotiable instruments and bank deposits and
collections.  Transfer warranties and presentment warranties for
negotiable instruments and bank deposits and collections will
apply to demand drafts.  The person submitting the demand draft
warrants that the creation of the demand draft was authorized by
the person identified as the maker of the check.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill addresses the problem
of demand drafts being presented to banks without the
authorization of the consumer.

Testifying for the bill were Senator Taylor; and Missouri Bankers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Amy Woods, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm