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Can you summarize UTCO Title 7, Chapter 15?
Financial Institutions Act > Dishonored Instruments
Short Summary
The provided legal document content consists of two sections. The first section governs the notice requirements for dishonored instruments, specifically checks. It applies to issuers of dishonored checks and defines ’notice’ as notice given to the issuer of a check either orally or in writing. The document provides guidelines for giving written notice, including the presumption of notice when properly deposited in the United States mail. It also mentions that holders exempt under Subsection 7-15-1(9) are exempt from this notice requirement. Failure to comply with the notice requirements may result in civil legal action, including the payment of the check amount, interest, court costs, attorneys’ fees, actual costs of collection, and damages. The second section governs the civil liability of issuers of checks and the rights and obligations of holders of dishonored checks. It outlines the circumstances under which an issuer of a check is liable to the holder, such as dishonor, insufficient funds, or fraudulent intent. The issuer is liable for the check amount and a service charge of $20. The holder has the option to give notice to the issuer and may waive the service charge if the check is redeposited and honored. If the issuer fails to pay within 15 days of notice, they may face a civil action and be liable for the check amount, collection costs, interest, court costs, reasonable attorney fees, and damages. However, there are exemptions for depository institutions and persons receiving payment on behalf of a depository institution.
Whom does it apply to?
Issuers of dishonored checks, holders of dishonored checks
What does it govern?
Notice requirements for dishonored instruments, civil liability of issuers of checks, rights and obligations of holders of dishonored checks
What are exemptions?
Holders exempt under Subsection 7-15-1(9), depository institutions, persons receiving payment on behalf of a depository institution
What are the Penalties?
Payment of the check amount, interest, court costs, attorneys' fees, actual costs of collection, and damages
Jurisdiction
Utah