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Current through October 23, 2012
(a) No licensee under this chapter shall engage in the business of discounting of notes, bills of exchange, checks, or other evidences of indebtedness, nor shall such a discounting business be conducted on the same premises where the licensee is conducting business pursuant to this chapter.
(b) No licensee shall at any time cash or advance any monies on a post dated check.
(c) Repealed.
(May 12, 1998, D.C. Law 12-111, § 20, 45 DCR 1788; Nov. 24, 2007, D.C. Law 17-42, § 2(c), 54 DCR 9988.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 26-1119.
Effect of Amendments
D.C. Law 17-42 repealed subsec. (c) which had read as follows:
"(c)(1) No licensee shall at any time cash or advance any monies on a personal check for a fee in excess of 10% of the face amount of the check as set out in § 26-317; provided, however, that where the licensee enters into an agreement with a customer to hold his or her personal check for deferred deposit, the licensee may charge an additional fee for verification, handling, and documentation processing totaling no more than $5 on a personal check with a face amount of up to $250; no more than $10 on a personal check with a face amount of $250.01 to $500; no more than $15 on a personal check with a face amount of $500.01 to $750; and no more than $20 on a personal check with a face amount of $750.01 to $1,000.
"(2) A personal check for deferred deposit must bear an issue date of not later than the date the check is cashed and the deferred deposit agreement is originated.
"(3) The deposit date of a check held for deferred deposit shall not exceed 31 days following the issue date of the check as agreed to in the Deferred Deposit Disclosure Agreement, Addendum I; provided, however, that when the deposit date occurs on a weekend or bank holiday, the check may be deposited on the next business day.
"(4) The minimum face amount of a check held for deferred deposit must amount to no less than $50. The aggregate face amount of checks being held for deferred deposit must not exceed $1,000 per customer.
"(5) The licensee shall retain all rights and privileges of a holder in due course on checks presented for deferred deposit.
"(6) The license to offer deferred deposit services shall be limited to only those businesses whose dominant business activity is financial services. The licensee may offer deferred deposit services only when the Superintendent has determined that the licensee's dominant business activity is financial services.
"(7) Fees charged for deferred deposit transactions shall be evidenced by a receipt. Such receipt shall be presented to the purchaser upon completion of the transaction."
Legislative History of Laws
For legislative history of D.C. Law 12-111, see Historical and Statutory Notes following § 26-301.
For Law 17-42, see notes following § 26-301.
Effective Dates
Section 4 of D.C. Law 17-42 provides:
"This act shall take effect following the certification by the Chief Financial Officer, through a revised quarterly revenue estimate for fiscal year 2008, that local funds exceed the annual revenue estimates incorporated in the fiscal year 2008 budget and financial plan in an amount sufficient to account for its fiscal effect. The Chief Financial Officer shall set aside revenue to account for the cost of fully implementing this act."
