Bill Text: DE HB364 | 2015-2016 | 148th General Assembly | Draft

Delaware House Bill 364 (Prior Session Legislation)

Draft

Bill Title: An Act To Amend Title 6 Of The Delaware Code Relating To Funds Transfers.

Spectrum: Bipartisan Bill

Status: (Passed) 2016-08-10 - Signed by Governor [HB364 Detail]

Download: Delaware-2015-HB364-Draft.html

SPONSOR:

Rep. B. Short & Sen. Townsend

Reps. Baumbach, Briggs King, Keeley, Lynn, M. Smith;

Sens. Bonini, Hall-Long, Hocker, Lavelle, Lopez

HOUSE OF REPRESENTATIVES

148th GENERAL ASSEMBLY

HOUSE BILL NO. 364

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO FUNDS TRANSFERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §4A-108, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§4A-108. ~~Exclusion of consumer transactions governed by federal law~~ Relationship to Electronic Fund Transfer Act.

(a) Except as provided in subsection (b) of this section, this ~~This~~ Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act (Title XX, Public Law 95-630, 92 Stat. 3728, 15 U.S.C. §1693 et seq.) ~~as amended from time to time~~.

(b) This Article applies to a funds transfer that is a remittance transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C. §1693o-1, unless the remittance transfer is an electronic fund transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C. §1693a.

(c) In a funds transfer to which this Article applies, in the event of an inconsistency between the applicable provisions of this Article and an applicable provision of the Electronic Fund Transfer Act, the provision of the Electronic Fund Transfer Act governs to the extent of the inconsistency.

SYNOPSIS

The Electronic Funds Transfer Act ("EFTA") was originally drafted to govern only consumer wire transfers. As a result, §4A-108 of Title 6 of the Delaware Code excluded fund transfers governed by EFTA from the scope of Article 4A of Title 6 ("Article 4A"). However, in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act amended EFTA ("Dodd-Frank amendments") to bring remittance transfers that are electronic fund transfers within its scope. Therefore, under §4A-108 of Title 6, even a remittance transfer that is not an electronic fund transfer, such as a commercial remittance transfer, is currently outside the scope of Article 4A. Consequently, there are no statutory rules governing remittance transfers that may involve mistaken addresses or payees, duties of intermediaries, and other issues beyond the initial sending of the transfer.

This Act fills the gap created by the Dodd-Frank amendments by bringing under Article 4A remittance transfers that are not electronic fund transfers under EFTA, to the extent there is not an inconsistency between Article 4A and EFTA.