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Can you summarize IACO 554.3513?
UNIFORM COMMERCIAL CODE > Civil remedy for dishonor.
Short Summary
This section of the Iowa Code governs the civil remedy for dishonor of checks, drafts, or orders due to lack of funds or credit. In a civil action, the plaintiff can recover total damages equaling three times the face value of the dishonored instrument, including the face value itself. However, the total recovery cannot exceed $500 more than the amount of the dishonored instrument. To be eligible for this remedy, the plaintiff must have made a written demand for payment at least thirty days before commencing the action, notifying the defendant of the intention to seek treble damages. The demand must have been received by the defendant through personal service, restricted certified mail, or regular mail to specific addresses. Additionally, the defendant must have failed to tender an amount not less than the face value of the dishonored instrument prior to the commencement of the action. The plaintiff must have also posted a notice stating the intention to seek civil damages at the usual place of payment or in a billing statement. In cases of economic hardship, the court or jury may waive all or part of the civil damages but will still render judgment for the face value of the dishonored instrument and the actual costs incurred by the plaintiff. This section does not apply if the dishonor is due to a bona fide dispute between the maker and the holder. No additional awards under other sections are allowed in actions brought under this section. In small claims, punitive or exemplary damages cannot be sought, but civil damages under this section are allowed. In other district court actions, either punitive or exemplary damages under chapter 668A or civil damages under this section can be sought, but not both. Violation of this section is considered an unlawful practice.
Whom does it apply to?
Persons who make a dishonored check, draft, or order
What does it govern?
Civil remedy for dishonor
What are exemptions?
The section does not apply if the dishonor is due to a bona fide dispute between the maker and the holder
What are the Penalties?
The plaintiff shall recover total damages equaling three times the face value of the dishonored check, draft, or order, not exceeding $500 more than the amount of the check, draft, or order
Jurisdiction
Iowa