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Can you summarize 6 DECO Chapter 13A?
Other Laws Relating to Commerce and Trade > DISHONOR OF CHECKS, DRAFTS OR ORDERS
Short Summary
This legal document, part of the Delaware Code, governs actions relating to the dishonor of checks, drafts, or orders for the payment of money. It applies to drawers of such checks, drafts, or orders. In an action against a drawer, the plaintiff may recover the amount of the dishonored check, draft, or order, plus court costs. Additionally, damages can be claimed: $50 for the first instance of dishonor within 1 year, and triple the amount of the check, draft, or order for subsequent instances within 1 year of a previous dishonored item, not exceeding $250. To initiate the action, the plaintiff must have made a written demand for payment at least 30 days prior and the defendant must have failed to tender the amount of the check, plus a fee of $40. The defendant may tender the amount of the check, plus $40 and court costs, after the action has commenced but before the hearing. The document allows the drawer and payee to agree in writing to terms that exceed the specified limits. However, damages cannot be recovered under this section for the repayment of certain short-term consumer loans subject to specific provisions. The Justice of the Peace Court is responsible for developing forms and regulations to ensure the efficient application of this statute.
Whom does it apply to?
Drawers of checks, drafts, or orders
What does it govern?
Actions relating to the dishonor of checks, drafts, or orders for the payment of money
What are exemptions?
Damages cannot be recovered under this section for the repayment of certain short-term consumer loans subject to specific provisions
What are the Penalties?
Damages can be claimed: $50 for the first instance of dishonor within 1 year, and triple the amount of the check, draft, or order for subsequent instances within 1 year of a previous dishonored item, not exceeding $250
Jurisdiction
Delaware