§ 40-6-5.2. Cashing of AFDC, GPA checks.
(a) For the purposes of this section, the term "banking institution� shall mean:
(1)Any
state or federally chartered bank, savings bank, loan and investment bank, or credit
union located within this state; and (2) Any currency-exchange specialist located
within this state and enrolled with the department of human services pursuant to regulations
to be adopted by the department.
(b) Each banking institution shall cash, at its main office or any of its branch offices
within the state, any check drawn by the state and payable within the state to a recipient
Free access — add to your briefcase to read the full text and ask questions with AI
§ 40-6-5.2. Cashing of AFDC, GPA checks.
(a) For the purposes of this section, the term "banking institution� shall mean: (1) Any
state or federally chartered bank, savings bank, loan and investment bank, or credit
union located within this state; and (2) Any currency-exchange specialist located
within this state and enrolled with the department of human services pursuant to regulations
to be adopted by the department.
(b) Each banking institution shall cash, at its main office or any of its branch offices
within the state, any check drawn by the state and payable within the state to a recipient
of aid to families with dependent children (AFDC) or general public assistance (GPA),
if the check is negotiated to the banking institution by the original payee of the
check, and if the payee produces reasonable identification required by this section
and as provided for in regulations adopted pursuant to subsection (d) hereof.
(c) Nothing in this section shall be interpreted as limiting any rights the banking institution
may have against the payee by contract or at law, with regard to items that are negotiated
to it as provided for in this section, that are not paid upon presentment, or where
the payee breaches a warranty made under § 6A-3-417. This section shall not apply to any check negotiated to a banking institution if
the institution has reason to believe that the check will not be paid on presentment
or that the tendering party may be in breach of one or more of the warranties contained
in § 6A-3-417.
(d) Provided that a banking institution properly employed the identification procedures
prescribed in regulations adopted pursuant to this subsection at the time an AFDC
or GPA check was cashed by such institution, the state shall honor and make payment
on the AFDC or GPA check, and the banking institution shall not be liable to reimburse
the state for a loss incurred as a result of the wrongful payment of a check by the
banking institution. The director of the department of human services shall adopt
regulations specifying: (1) The forms of reasonable identification that a banking
institution shall accept when cashing an AFDC or GPA check pursuant to subsection
(b); and (2) The identification procedures the institution must employ to receive
payment thereon and to avoid liability for the wrongful payment of any such check.
The regulations shall provide that the forms of reasonable identification shall include,
but need not be limited to: (i) An AFDC or GPA photo-identification card issued by
the department of human services; (ii) A valid identification card issued by the administrator
of the division of motor vehicles pursuant to § 3-8-6; (iii) A valid driver's license; (iv) An identification card issued by the office
of healthy aging; and (v) A valid identification card issued by the United States
Immigration and Naturalization Service.
(e) The department of human services shall issue a stop-payment order with respect to
any AFDC or GPA check reported as lost, stolen, or undelivered. The department of
human services shall not issue a replacement AFDC or GPA check for a period of three
(3) business days from the date of the report of such loss, theft, or nondelivery.