NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

 

 

CHAPTER 1071

SENATE BILL 783

 

 

AN ACT TO AMEND ARTICLE 9, CHAPTER 105 OF THE GENERAL STATUTES OF NORTH CAROLINA TO RESTRICT LIABILITY FOR PAYMENT OF SUMS REPRESENTED BY NEGOTIABLE INSTRUMENTS UNDER GARNISHMENT PROCEEDINGS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subsection (b) of Section 105-242, Article 9, Chapter 105 of the General Statutes of North Carolina is hereby amended by inserting a semicolon in lieu of the period at the end of the first sentence thereof immediately following the word "garnishee" and by adding thereafter the following:

"provided, however, the garnishee shall not become liable for any sums represented by or held pursuant to any negotiable instrument issued and delivered by the garnishee to the taxpayer and negotiated by the taxpayer to a bona fide holder in due course, and whenever any sums due by the taxpayer and subject to garnishment are so held or represented, the garnishee shall hold such sums for payment to the Commissioner of Revenue upon the garnishee's receipt of such negotiable instrument, unless such instrument is presented to the garnishee for payment by a bona fide holder in due course in which event such sums may be paid in accordance with such instrument to such holder in due course."

Sec. 2.  This Act does not apply to pending litigation.

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 30th day of June, 1969.