Indiana § 26-2-7-5 Extent of liability for stopping payment or permitting dishonor of
checks

Indiana Statutes

§ 26-2-7-5 — Extent of 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

A person liable under section 4 of this chapter is also liable for all of the following:

(1)Interest at the rate of eighteen percent (18%) per annum on the face amount of the check from the date of the check's execution until payment is made in full.

(2)Court costs incurred in prosecuting an action that may be brought by the holder to collect on the check.

(3)Reasonable attorney's fees incurred by the holder if the responsibility for collection is referred to an attorney who is not a salaried employee of the holder. If legal action is filed to effect collection and the collection on the check is referred to an attorney who is not a salaried employee of the holder, the holder of the check is entitled to minimum attorney's fees of not less than one hundred dollars ($100).

(4)Actual trave

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A person liable under section 4 of this chapter
is also liable for all of the following:
(1) Interest at the rate of eighteen percent (18%) per annum on the
face amount of the check from the date of the check's execution
until payment is made in full.
(2) Court costs incurred in prosecuting an action that may be
brought by the holder to collect on the check.
(3) Reasonable attorney's fees incurred by the holder if the
responsibility for collection is referred to an attorney who is not
a salaried employee of the holder. If legal action is filed to effect
collection and the collection on the check is referred to an
attorney who is not a salaried employee of the holder, the holder
of the check is entitled to minimum attorney's fees of not less than
one hundred dollars ($100).
(4) Actual travel expenses not otherwise reimbursed under
subdivisions (1) through (3) and incurred by the holder to do
either of the following:
(A) Have the holder or an employee or agent of the holder file
papers and attend court proceedings related to the recovery of
a judgment under this chapter.
(B) Provide witnesses to testify in court proceedings related to
the recovery of a judgment under this chapter.
(5) A reasonable amount to compensate the holder for time used
to do either of the following:
(A) File papers and attend court proceedings related to the
recovery of a judgment under this chapter.
(B) Travel to and from activities described in clause (A).
(6) Actual direct and indirect expenses incurred by the holder to
compensate employees and agents for time used to do either of
the following:
(A) File papers and attend court proceedings related to the
recovery of a judgment under this section.
(B) Travel to and from activities described in clause (A).
(7) All other reasonable costs of collection.

Indiana § 26-2-7-5 (Extent of liability for stopping payment or permitting dishonor of checks) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.