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S. B. No. 2738 *SS08/R1228* ~ OFFICIAL ~ G1/2
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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) McMahan (By Request)
SENATE BILL NO. 2738
AN ACT TO AMEND SECTION 97-19-57, MISSISSIPPI CODE OF 1972, 1
TO INCREASE FROM $40.00 TO $100.00 THE SERVICE CHARGE FOR THE 2
MAKING, DRAWING, ISSUING, UTTERING, DELIVERING, OR INITIATION OF A 3
CHECK, DRAFT, ORDER, ELECTRONICALLY CONVERTED CHECK, OR ELECTRONIC 4
COMMERCIAL DEBIT PAYMENT OF WHICH IS REFUSED BY THE DRAWEE DUE TO 5
INSUFFICIENT FUNDS IN OR ON DEPOSIT WITH SUCH BANK, CORPORATION, 6
FIRM OR PERSON; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 97-19-57, Mississippi Code of 1972, is 9
amended as follows: 10
97-19-57. (1) As against the maker, drawer or payor 11
thereof, the making, drawing, issuing, uttering, delivering, or 12
initiation of a check, draft, order, electronically converted 13
check, or electronic commercial debit payment of which is refused 14
by the drawee, shall be prima facie evidence and create a 15
presumption of intent to defraud and of knowledge of insufficient 16
funds in, or on deposit with, such bank, corporation, firm or 17
person, provided such maker, drawer or payor shall not have paid 18
the holder or payee thereof the amount due thereon, together with 19
a service charge of * * * One Hundred Dollars ($100.00), within 20
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fifteen (15) days after receiving notice that such check, draft, 21
order, electronically converted check, or electronic commercial 22
debit has not been paid by the drawee or payor's bank. 23
(2) For purposes of Section 11-7-12, the form of the notice 24
provided for in subsection (1) of this section for a check, draft, 25
order, or electronically converted check shall be sent by regular 26
mail and shall be substantially as follows: "This statutory 27
notice is provided pursuant to Section 97-19-57, Mississippi Code 28
of 1972. You are hereby notified that a check, draft, order, or 29
electronically converted check numbered _____, apparently issued 30
by you on _____ (date), drawn upon _____ (name of bank), and 31
payable to _____, has been dishonored. Pursuant to Mississippi 32
law, you have fifteen (15) days from receipt of this notice to 33
tender payment of the full amount of such check, draft or order, 34
or electronically converted check plus a service charge of Forty 35
Dollars ($40.00), the total amount due being $_____. Failure to 36
pay this amount in full within the time specified above shall be 37
prima facie evidence of and create a presumption of both the 38
intent to defraud and the knowledge of insufficient funds in, or 39
on deposit with, such bank in violation of Section 97-19-55." 40
(3) For purposes of Section 97-19-67, the form of the notice 41
provided for in subsection (1) of this section for a check, draft, 42
order, or electronically converted check shall be sent by regular 43
mail, supported by an affidavit of service by mailing, and shall 44
be substantially as follows: "This statutory notice is provided 45
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pursuant to Section 97-19-57, Mississippi Code of 1972. You are 46
hereby notified that a check, draft, order, or electronically 47
converted check numbered _____, apparently issued by you on _____ 48
(date), drawn upon _____ (name of bank), and payable to _____, has 49
been dishonored. Pursuant to Mississippi law, you have fifteen 50
(15) days from receipt of this notice to tender payment of the 51
full amount of such check, draft or order, or electronically 52
converted check plus a service charge of Forty Dollars ($40.00), 53
the total amount due being $_____. Unless this amount is paid in 54
full within the time specified above, the holder may assume that 55
you delivered the instrument with intent to defraud and may turn 56
over the dishonored instrument and all other available information 57
relating to this incident to the proper authorities for criminal 58
prosecution." 59
(4) For purposes of Sections 11-7-12 and 97-19-67, the form 60
of notice provided for in subsection (1) of this section for an 61
electronic commercial debit shall be sent by regular mail, 62
supported by an affidavit of service by mailing, and shall be 63
substantially as follows: "This statutory notice is provided 64
pursuant to Section 97-19-57, Mississippi Code of 1972. You are 65
hereby notified that on ______(date) an electronic commercial 66
debit was initiated by_____(name of payee bank) on behalf of 67
_______ (payee) to ___________ (name of payor bank) through the 68
ACH Network requesting a payment in the amount of $_______ to 69
___________ (payee) from your account pursuant to invoice number 70
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________ and our agreement dated ________, but that payment has 71
been dishonored. Pursuant to Mississippi law, because the payee 72
delivered ___________ (goods or service) to you in reliance upon 73
the agreement, you have fifteen (15) days from receipt of this 74
notice to tender payment of the full amount of such electronic 75
commercial debit plus a service charge of Forty Dollars ($40.00), 76
the total amount due being $_______. Failure to pay this amount 77
in full within the time specified above shall be prima facie 78
evidence of and create a presumption of both the intent to defraud 79
and the knowledge of insufficient funds in, or on deposit with, 80
such bank in violation of Section 97-19-55, and the payee may 81
assume that you entered into such agreement with intent to defraud 82
and may turn over all documentation related to the dishonored 83
electronic commercial debit to the proper authorities for criminal 84
prosecution." 85
(5) If any notice is returned undelivered to the sender 86
after such notice was mailed to the address printed on the check, 87
draft or order, or to the address given by the accused at the time 88
of issuance of the instrument, such return shall be prima facie 89
evidence of the maker's or drawer's intent to defraud. 90
(6) Affidavit of service by mail shall be adequate if made 91
in substantially the following form: 92
"STATE OF ____________ 93
COUNTY OF ____________ 94
S. B. No. 2738 *SS08/R1228* ~ OFFICIAL ~
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ST: Service charge; increase for certain
payments refused due to insufficient funds from
$40 to $100.
________________, being first duly sworn on oath, deposes and 95
states that he/she is at least eighteen (18) years of age and that 96
on (date)______________, 2___, he/she served the attached Notice 97
of Dishonor by placing a true and correct copy thereof securely 98
enclosed in an envelope addressed as follows: 99
______________________________ 100
______________________________ 101
______________________________ 102
and deposited the same, postage prepaid, in the United States mail 103
at ________________________, __________________________. 104
__________________________________ 105
(signature) 106
Subscribed to and sworn before me, this the ________ day of 107
_____________________, 2___. 108
_________________________________ 109
(Notary Public) 110
My commission expires: 111
(SEAL)" 112
(7) Without in any way limiting the provisions of this 113
section, this section shall apply to a draft for the payment of 114
money given for a motor vehicle even if such payment is 115
conditioned upon delivery of documents necessary for transfer of a 116
valid title to the purchaser. 117
SECTION 2. This act shall take effect and be in force from 118
and after July 1, 2026. 119