§ 15-803

(a) A notice of dishonor sent by a holder to a maker or drawer under § 15–802 of this subtitle shall substantially comply with the following form:

“NOTICE OF DISHONORED CHECK

Date _________________________________________________________________________
Name of Issuer _______________________________________________________________
Street Address _______________________________________________________________
City and State ________________________________________________________________
You are according to law hereby notified that a check or instrument numbered ___________ and dated ___________, drawn on the ___________ bank of ___________ in the amount of ___________ has been returned unpaid with the notation the payment has been refused because of ___________________________________________
Within 30 days from the mailing of this notice, you must pay or tender to __________
______________________________________________________________________________
(Holder)
sufficient money to pay such check or instrument in full and a collection fee of $________ (not more than $35). If payment of the above amounts is not made within 30 days of the mailing of this notice of dishonor, you shall be liable under § 15–802 of the Commercial Law Article, in addition to the amount of the check or instrument and a collection fee of up to $35, for an amount up to 2 times the amount of the check or instrument, but not more than $1,000. In addition, you may be prosecuted under Title 8, Subtitle 1 of the Criminal Law Article of Maryland and subject to the following penalties:
(1) If the property or services has a value of at least $1,000 but less than $10,000, a fine not exceeding $10,000 or imprisonment not exceeding 10 years, or both;
(2) If the property or services has a value of at least $10,000 but less than $100,000, a fine not exceeding $15,000 or imprisonment not exceeding 15 years, or both;
(3) If the property or services has a value of $100,000 or more, a fine not exceeding $25,000 or imprisonment not exceeding 25 years, or both;
(4) If the property or services has a value of less than $1,000, a fine not exceeding $500 or imprisonment not exceeding 18 months, or both.
It shall be a complete defense to any action brought by any holder under § 15–802 of the Commercial Law Article that, within 30 days from the mailing of the “Notice of Dishonored Check”, the maker or drawer has paid the holder the full amount of the check or instrument and collection costs of not more than $35. A holder may not recover any damages if the holder has demanded of, and received from, the maker or drawer collection costs exceeding $35.

It shall be a complete defense to any action brought under § 15–802 of the Commercial Law Article by a holder to whom a dishonored check or other instrument was issued that the dishonor of the check or other instrument was due to a justifiable stop payment order or to the attachment of the account.

In any action brought under § 15–802 of the Commercial Law Article by a holder or holder in due course to whom a dishonored check or other instrument was negotiated, the action is subject to all valid defenses that may be raised by the maker or drawer against the holder or holder in due course under Title 3 of the Commercial Law Article.”

(b) The holder to whom a check or other instrument is issued or negotiated may post a clearly conspicuous notice at or near the point of receipt stating the liability of the maker or drawer for the collection fee and damages provided in § 15–802 of this subtitle and criminal penalties provided in §§ 8–106 and 8–107 of the Criminal Law Article.