Indiana Code 26-2-7-6. Liability for continued nonpayment of checks
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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:
(2) The insufficiency of funds is caused by the dishonoring of a third party check that had been deposited into the person’s account.
(1) The person reasonably believed that there were sufficient funds in the account to cover the check.
Terms Used In Indiana Code 26-2-7-6
- check: includes a draft. See Indiana Code 26-2-7-1
- Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
(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).
As added by P.L.42-1993, SEC.18.