Ask Reggi Your Question Now
Can you summarize RIGL Title 6, Chapter 42?
Commercial Law General Regulatory Provisions > Checks and Other Instruments Dishonor
Short Summary
This legal document provides the form and requirements for a notice of dishonor for dishonored checks. It applies to holders, makers, and drawers of dishonored checks. The notice must include specific information such as the date, issuer’s name and address, check or instrument number, date of the check, and the bank or financial institution on which the check was drawn. The notice informs the recipient that the check has been returned unpaid and provides a deadline of thirty (30) days to pay the amount in full. Failure to make payment within the specified time may result in liability for damages. The document also governs the damages that can be sought by holders of dishonored checks or other instruments. If a check, draft, or other instrument has not been paid within thirty (30) days after the holder has sent a notice of dishonor, the holder may seek damages in the district court. The damages include the amount of the check or other instrument, a collection fee, and an amount equal to three times the amount of the check or instrument (minimum $200, maximum $1,000). The maker or drawer of a dishonored check or other instrument who fails to pay the amount demanded within thirty (30) days of the mailing of the notice of dishonor shall be liable for these damages. Additionally, when a check, draft, or other instrument has been dishonored by nonacceptance or nonpayment by any bank or other financial institution and has not been paid within ten (10) days, the holder may send a notice of dishonor to the maker or drawer. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Holders, makers, and drawers of dishonored checks
What does it govern?
Notice of dishonor for dishonored checks
What are exemptions?
1) Dishonor due to a justifiable stop payment order or attachment of the account; 2) Payment made to the holder within 30 days of the notice of dishonor
What are the Penalties?
Liability for damages including the amount of the check or instrument, a collection fee, and an amount equal to three times the amount of the check or instrument (minimum $200, maximum $1,000)
Jurisdiction
Rhode Island