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Can you summarize NYCL GBS 396-AA?
Miscellaneous > Simulated check
Short Summary
This section of the Consolidated Laws of New York, under the General Business section, pertains to simulated checks. A simulated check refers to any document that resembles currency or a negotiable instrument but is not one. It is designed to mislead or deceive individuals into believing it represents currency or a negotiable instrument. However, non-negotiable checks, drafts, notes, or other instruments used for soliciting orders for the purchase of such instruments, which are clearly marked as non-negotiable, are not considered simulated checks. It is prohibited for any person, firm, or corporation to produce, advertise, offer for sale, sell, distribute, or transfer simulated checks in the state of New York unless the document bears the phrase ‘THIS IS NOT A CHECK’ diagonally printed in clear and conspicuous type on the front. Violations of this section may result in an application by the attorney general for an injunction to restrain such violations. The court may issue an injunction and impose a civil penalty of up to one hundred dollars for each violation. The attorney general is authorized to gather relevant facts, make determinations, and issue subpoenas in accordance with the civil practice law and rules.
Whom does it apply to?
Any person, firm, or corporation producing, advertising, offering for sale, selling, distributing, or transferring simulated checks in the state of New York
What does it govern?
Simulated checks
What are exemptions?
Non-negotiable checks, drafts, notes, or other instruments used for soliciting orders for the purchase of checks, drafts, notes, bonds, or other instruments, clearly marked as a sample, specimen, or non-negotiable
What are the Penalties?
A civil penalty of not more than one hundred dollars for each violation
Jurisdiction
New York