§ 40-5.2-32 - Cashing of assistance checks.
SECTION 40-5.2-32
§ 40-5.2-32 Cashing of assistance checks.– (a) For purposes of this section, the term "banking institution" shall mean:(1) any state or federally chartered bank, savings bank, loan and investmentbank or credit union located within this state; and (2) any currency exchangespecialist located within this state and enrolled with the department of humanservices pursuant to regulations to be adopted by the department.
(b) Each banking institution shall cash, at its main officeor any of its branch offices within the state, any check drawn by the state andpayable within the state to a recipient of cash assistance under this chapter,if the check is negotiated to the banking institution by the original payee ofthe check, and if the payee produces reasonable identification required by thissection and as provided for in regulations adopted pursuant to subsection (d).
(c) Nothing in this section shall be interpreted as limitingany rights which the banking institution may have against the payee by contractor law, with regard to items which are negotiated to it as provided for in thissection, which are not paid upon presentment or where such payee breaches awarranty made under § 6A-3-417. This section shall not apply to any checknegotiated to a banking institution if such institution has reason to believethat the check will not be paid on presentment or that the tendering party maybe in breach of one or more of the warranties contained in § 6A-3-417.
(d) Provided that a banking institution properly employed theidentification procedures prescribed in regulations adopted pursuant to thissubsection at the time a cash assistance check was cashed by such institution,the state shall honor and make payment on the cash assistance check and thebanking institution shall not be liable to reimburse the state for a lossincurred as a result of the wrongful payment of a check by a bankinginstitution. The director of the department of human services shall adoptregulations specifying: (1) the forms of reasonable identification which abanking institution shall accept when cashing a cash assistance check pursuantto subsection (b); and (2) the identification procedures the institution mustemploy to receive payment thereon and to avoid liability for wrongful paymentof any check. The regulations shall provide that the forms of reasonableidentification shall include, but need not be limited to: (1) a cash assistancephoto identification card issued by the department of human services; (2) avalid identification card issued by the administrator of the division of motorvehicles pursuant to section 3-8-6; (3) a valid driver's license; (4) anidentification card issued by the department of elderly affairs; and (5) avalid identification card issued by the United States Immigration andNaturalization Service.
(e) The department shall issue a stop payment order withrespect to any assistance check reported as lost, stolen, or undelivered. Thedepartment shall not issue a replacement cash assistance check for a period ofthree (3) business days from the date of the report of such loss, theft, ornon-delivery.