Indiana § 26-2-7-4 Liability for stopping payment or permitting dishonor of checks

Indiana Statutes

§ 26-2-7-4 — Liability for stopping payment or permitting dishonor of checks

Indiana·Title 26 COMMERCIAL LAW·Art. 2 COMMERCIAL TRANSACTIONS·Ch. 7 Penalties for Stopping Payments or Permitting Dishonor

Subject to section 8 of this chapter, a person found liable under other applicable law is liable under this chapter to the holder of a check if the person executed and delivered the check to another person drawn on or payable at a financial institution and the person does either of the following:

(1)Without valid legal cause stops payment on the check.

(2)Allows the check to be dishonored by a financial institution because of any of the following:

(A)Lack of funds.

(B)Failure to have an account.

(C)Lack of an authorized signature of the drawer or a necessary endorser.

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Subject to section 8 of this chapter, a person
found liable under other applicable law is liable under this chapter to
the holder of a check if the person executed and delivered the check to
another person drawn on or payable at a financial institution and the
person does either of the following:
(1) Without valid legal cause stops payment on the check.
(2) Allows the check to be dishonored by a financial institution
because of any of the following:
(A) Lack of funds.
(B) Failure to have an account.
(C) Lack of an authorized signature of the drawer or a necessary
endorser.

Indiana § 26-2-7-4 (Liability for stopping payment or permitting dishonor of checks) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.