Committee considers repealing 1914 statute on Saturday payment of negotiable instruments

The committee considered Senate Bill 331, a measure to repeal a 1914 provision that states no law shall be construed to prevent banks from paying checks, drafts or other bills of exchange on Saturday afternoons or legal holidays when such payments would be lawful at other times.

Eileen, speaking for the reviser's office, said the statute was adopted when banks were not usually open on Saturdays and holidays; with internet banking and automated processing the provision is largely obsolete and exists only to avoid printing the volume in the statutes book. "It just eliminated that as an excuse to invalidate a payment," she told the committee.

Brock Railer, general counsel for the Office of the State Bank Commissioner, supported repeal and noted that payment instruments and checks are governed by the Uniform Commercial Code (Articles 3 and 4), which makes the 1914 law redundant. He said state banks already may operate Saturdays if they choose and that the statute's original purpose is now covered by subsequent legislation and commercial practice.

Committee members asked how the statute was uncovered; Eileen and Brock credited the reviser's office and legislative staff. The hearing produced no opponent or neutral testimony and no fiscal ramifications were identified. The committee closed the SB331 hearing.