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Can you summarize IC 26-2-7?
COMMERCIAL TRANSACTIONS > Penalties for Stopping Payments or Permitting Dishonor of Checks and Drafts
Short Summary
The provided legal document content pertains to the penalties for stopping payments or permitting dishonor of checks and drafts under the Indiana Code, specifically the Commercial Transactions section. It applies to persons liable under section 4 of this chapter. The document outlines the liabilities and penalties for individuals who stop payment on a check without valid legal cause or allow a check to be dishonored by a financial institution due to lack of funds, failure to have an account, or lack of an authorized signature. The liabilities include interest at the rate of 18% per annum on the face amount of the check, court costs, reasonable attorney’s fees, travel expenses, compensation for time used, and other reasonable costs of collection. The minimum attorney’s fees are set at $100. There are no exemptions mentioned in this section. However, there are exemptions for persons who have allowed a check to be dishonored due to lack of funds, but reasonably believed there were sufficient funds in the account and the insufficiency of funds is caused by the dishonoring of a third party check deposited into the person’s account. If a person liable under this chapter does not pay the full amount of the check within thirty days after receiving written notice of nonpayment, they are subject to penalties. The penalties vary based on the face amount of the check. If the face amount is not greater than $250, the penalty is three times the face amount of the check. If the face amount is greater than $250, the penalty is the face amount of the check plus $500.
Whom does it apply to?
Persons liable under section 4 of this chapter
What does it govern?
Penalties for stopping payments or permitting dishonor of checks and drafts
What are exemptions?
Exemptions for persons who have allowed a check to be dishonored due to lack of funds, but reasonably believed there were sufficient funds in the account and the insufficiency of funds is caused by the dishonoring of a third party check deposited into the person's account
What are the Penalties?
Penalties for continued nonpayment of checks vary based on the face amount of the check. If the face amount is not greater than $250, the penalty is three times the face amount of the check. If the face amount is greater than $250, the penalty is the face amount of the check plus $500.
Jurisdiction
Indiana