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Can you summarize 4 ARCO Chapter 60?
Contracts, Notes, and Other Commercial Instruments > Checks
Short Summary
This legal document found in the Arkansas Code under Business and Commercial Law governs the liability for restitution in cases where a check is issued but not paid due to insufficient funds. It applies to holders of ‘hot checks’ who are entitled to recover the increasing costs associated with processing and collecting on these checks. The document declares an emergency and highlights the inadequacy of current law in allowing adequate recovery of these costs. The effective date of this act is determined by the approval or veto process by the Governor. The document also references other acts that revise the duties of certain state entities and establish new departments of the state. However, the specific penalties for non-compliance or violation of the provisions are not mentioned in this document. The document defines key terms such as ‘check’, ‘drawee’, ‘drawer’, and ‘issue’. It also specifies that this chapter does not apply to the laws governing the imposition of a penalty for checks written on accounts which have insufficient funds and which checks are payable to either the Secretary of the Department of Finance and Administration or to the Department of Finance and Administration for any taxes, licenses, or fees imposed by any laws of this state. The document outlines the restitution process for ‘hot checks’, including the timeframe for payment, collection fees, and fees charged by financial institutions. It states that if the person who issued the check fails to make restitution within thirty days of a written demand, they become liable to the holder of the check for twice the amount of the check, but not less than fifty dollars ($50.00), and a collection fee not exceeding thirty dollars ($30.00), plus any fees charged by financial institutions. The prevailing party may also recover court costs and reasonable attorney’s fees. The document clarifies that this section does not prevent the criminal prosecution of the person who issues the check, and any payment made by the defendant to a victim under a criminal restitution order will be set off against any judgment in favor of the victim in a civil action under this section.
Whom does it apply to?
Holders of 'hot checks'
What does it govern?
Checks
What are exemptions?
Laws governing the imposition of a penalty for checks written on accounts which have insufficient funds and which checks are payable to either the Secretary of the Department of Finance and Administration or to the Department of Finance and Administration for any taxes, licenses, or fees imposed by any laws of this state
What are the Penalties?
Specific penalties for non-compliance or violation of the provisions are not mentioned in this document.
Jurisdiction
Arkansas