Ask Reggi Your Question Now
Can you summarize 47 TNCO Chapter 29?
Commercial Instruments And Transactions > Collection of Bad Checks
Short Summary
This section of the Tennessee Code governs the liability for dishonored checks. It applies to persons who have executed and delivered a check or draft drawn on or payable at a bank or other financial institution. If a person stops payment on the check or allows it to be dishonored due to lack of funds, failure to have an account, or lack of an authorized signature, they may be held liable in a civil action. The person would be liable for the face amount of the check, interest at a rate of ten percent (10%) per annum, reasonable service charges incurred by the payee, court costs, and reasonable attorney fees. However, if the person pays the full amount of the check within ten (10) days after receiving notice of non-payment, this section does not apply. If the person fails to pay within thirty (30) days following certified mailing of written notice, treble damages may be sought, not exceeding five hundred dollars ($500).
Whom does it apply to?
Persons who have executed and delivered a check or draft drawn on or payable at a bank or other financial institution
What does it govern?
Liability for dishonored checks
What are exemptions?
If the person pays the full amount of the check within ten (10) days after receiving notice of non-payment, this section does not apply.
What are the Penalties?
The person would be liable for the face amount of the check, interest at a rate of ten percent (10%) per annum, reasonable service charges incurred by the payee, court costs, and reasonable attorney fees. If the person fails to pay within thirty (30) days following certified mailing of written notice, treble damages may be sought, not exceeding five hundred dollars ($500).
Jurisdiction
Tennessee