ASSEMBLY FINANCIAL INSTITUTIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 605

 

STATE OF NEW JERSEY

 

DATED: FEBRUARY 15, 1996

 

      The Assembly Financial Institutions Committee reports favorably Assembly Bill No. 605.

      This bill adds a section to New Jersey's Uniform Commercial Code - Negotiable Instruments, Chapter 3 of Title 12A of the New Jersey Statutes. This section clarifies the rights and obligations of a claimant and an obligated bank in cases in which a cashier's check, teller's check, or certified check is lost, destroyed or stolen.

      In addition, the bill amends N.J.S.3B:14-58 with a correction to the text as it was enacted in P.L.1995, c.28. It clarifies the conditions under which a bank has notice of a breach of fiduciary duty with respect to a deposit of an instrument made payable to the fiduciary as fiduciary or the principal.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.