Bill Summary for H 1060 (2015-2016)

Summary date: 

May 10 2016

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 1060 (Public) Filed Tuesday, May 10, 2016
AN ACT TO CONFORM TO THE COMPARABLE PROVISION OF THE UNIFORM COMMERCIAL CODE THIS STATE'S LAW ON ACCORD AND SATISFACTION OF A DISPUTED DEBT THROUGH THE TENDERING OF A NEGOTIABLE INSTRUMENT AS FULL PAYMENT OF THE DEBT, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.
Intro. by Bryan.

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Bill summary

Identical to S 807 filed on 5/3/16.

Amends Article 3 of GS Chapter 25 that provides the Negotiable Instruments provisions of Article 3 of the Uniform Commercial Code, to specifically amend GS 25-3-311 concerning accord and satisfaction by use of negotiable instrument.  

Current subsection (b) discharges a claim of a property or possessory interest in a negotiable instrument (instrument) if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous or obvious statement to the effect that the instrument was tendered as full satisfaction of the claim.  

Current subsection (c) provides that a claim is not discharged under subsection (b) when the claimant, if an organization, proves that (1) within a reasonable time before the tender, the claimant sent a conspicuous or obvious statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place and (2) the instrument or accompanying communication was not received by that designated person, office, or place.  Moves this language to new subsubsection (c)(1).

Establishes a new subsubsection (c)(2) providing that a claim will also not be discharged when the claimant, whether or not an organization, proves that within 90 days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. Provides that new (c)(2) does not apply if the claimant is an organization that sent a statement complying with clause (1) of (c)(1).

Effective October 1, 2016, and applies to negotiable instruments tendered in full satisfaction of a claim on or after that date.

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