§ 26-2-7-6 — Liability for continued nonpayment of checks

Indiana § 26-2-7-6

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

Text

(a) This section does not apply to a person who
has allowed a check to be dishonored because of lack of funds if both
of the following apply:
(1) The person reasonably believed that there were sufficient
funds in the account to cover the check.
(2) The insufficiency of funds is caused by the dishonoring of a
third party check that had been deposited into the person's
account.
(b) If a person liable under this chapter does not pay to the holder
the full amount of the check not more than thirty (30) days after the
certified mailing of written notice that the check has not been paid, the
person is liable for, and the court shall award judgment for, the
following, whichever applies:
(1) If the face amount of the check is not greater than two hundred
fifty dollars ($250), three (3) times the face amount of the check.
(2) If the face amount of the check is greater than two hundred
fifty dollars ($250), the face amount of the check plus five
hundred dollars ($500).

Legislative History

As added by P.L.42-1993, SEC.18.