The bill amends the Deferred Presentment Service Transactions Act, specifically section 2, to clarify and update definitions and terms related to deferred presentment service transactions. Key insertions include the definition of "check," which now encompasses any negotiable instrument representing an obligation to pay, and the term "closed," which outlines various conditions under which a deferred presentment service transaction is considered complete. Additionally, the bill modifies the definition of "deferred presentment service transaction" to specify that it involves both the payment of an agreed amount to the customer and the holding of the customer's check for a specified period.

The bill also makes several deletions and insertions to enhance clarity, such as changing "its" to "the licensee's" in reference to agents and adjusting the language around the collection of checks. Furthermore, it expands the scope of what constitutes a deferred presentment service transaction by specifying that it does not include delays in presentment of loan repayment checks under certain financial acts. The enactment of this bill is contingent upon the passage of House Bill No. 5544 and is set to take effect on January 1, 2026.

Statutes affected:
House Introduced Bill: 487.2122