An Act To Make the State's Uniform Commercial Code Compatible with the Federal Electronic Fund Transfer Act

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  the State's Uniform Commercial Code, Article 4-A currently applies only to transfers of funds between commercial parties; and

Whereas,  the federal Electronic Fund Transfer Act currently applies only to consumer wire transfers; and

Whereas,  amendments to the federal Electronic Fund Transfer Act that govern remittance transfers and remittance transfers that are also electronic fund transfers as defined in the federal Electronic Fund Transfer Act become effective in February 2013; and

Whereas,  as a result of the amendments to the federal Electronic Fund Transfer Act, a fund transfer initiated by a remittance transfer is entirely outside the coverage of the Uniform Commercial Code, Article 4-A and the federal Electronic Fund Transfer Act; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 11 MRSA §4-1102,  as enacted by PL 1991, c. 812, §2, is amended to read:

§ 4-1102. Subject matter

Except as otherwise provided in section 4-1108 4-1109, this Article applies to funds transfers defined in section 4-1104.

Sec. 2. 11 MRSA §4-1108,  as enacted by PL 1991, c. 812, §2, is repealed.

Sec. 3. 11 MRSA §4-1109  is enacted to read:

§ 4-1109.  Relationship to federal Electronic Fund Transfer Act

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

In anticipation of the effective date of the amendments to federal law governing electronic fund transfers, this bill replaces the existing exemption in the State's Uniform Commercial Code governing fund transfers by making the Uniform Commercial Code applicable to the remittance transfers that are not electronic funds transfers under the federal Electronic Fund Transfer Act. The bill also specifically acknowledges that the federal statute will control in the case of any conflict between the Uniform Commercial Code and the federal Electronic Fund Transfer Act.