Essentially, what this bill does is conform state law to current federal law in order to ensure that the wire transfer of money is a safe transaction. Due to differences in the language of state and federal law, this has not always been the case.
“This bill serves as a provision to current law, under which discrepancies between federal and state law allowed for safety loopholes in the wire transfer of money,” said Rep. Price. “With this new legislation, the legal jargon of the bills will be aligned to ensure secure transactions.”
The bill provides that Indiana’s UCC provisions governing fund transfers apply to remittance transfers as defined in the federal Economic Fund Transfer Act (EFTA), unless the remittance transfer is also an electronic fund transfer as defined by EFTA. Additionally, it provides that if EFTA and Indiana’s statue both apply to a fund transfer, the federal EFTA governs to the extent of any inconsistency.
“As the Chairman of the Financial Institutions Committee, I had the opportunity to take an in-depth look at HB 1224,” said Rep. Burton. “I enjoyed watching Rep. Price pass his first bill through the House of Representatives. That is a very exciting time for a freshman legislator.”
To stay up to date on the legislative happenings at the Statehouse, visit www.in.gov/legislative.