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Ind. Code § 26-2-7-6

Liability for continued nonpayment of checks

Applied in 1 court decision — leading case PAYDAY TODAY, INC. v. Hamilton (2009)

Most recently applied in PAYDAY TODAY, INC. v. Hamilton (July 2009)

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

Sec. 6. (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).

Official source: Indiana General Assembly. Reproduced from public-domain Indiana statutes; confirm against the official source for the current text. Not legal advice.