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 § 26-2-7-4

Title 26COMMERCIAL LAW

Art. 2COMMERCIAL TRANSACTIONS

Ch. 7Penalties for Stopping Payments or Permitting Dishonor

This text of Indiana § 26-2-7-4 (Liability for stopping payment or permitting dishonor of checks) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-2-7-4 (2026).

Text

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.