§ 26-1-3.1-502.5 — Surcharge after dishonor

Indiana § 26-1-3.1-502.5

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

5. (a) Except as provided in subsection
(b), a person to whom a check, a draft, an order, or like instrument is
tendered may, if the instrument is dishonored or returned unpaid for
any reason, charge and collect from the maker or drawer, or the person
for whose benefit the instrument was given, an amount not to exceed
twenty dollars ($20) plus an amount equal to the actual charge by the
depository institution for each returned or dishonored instrument. The
charge shall not be considered an interest charge, a finance charge, a
time price differential, or any charge of a similar nature.
(b) To the extent applicable to a federally chartered bank, if a check
is dishonored, a bank, trust, banc, banco, or bancorp may not charge
any party other than the maker or drawer of the check a fee in
connection with the dishonoring of the check.

Legislative History

As added by P.L.248-1995, SEC.3. Amended by P.L.213-2007, SEC.32.