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Worthless Check Legal Meaning

§13A-9-13.2 Trading in worthless negotiable instruments – notification of refusal to pay for the instrument. 1. Communications by registered letter or registered letter to the address printed on the apparatus or indicated at the time of issue shall be deemed sufficient and equivalent to receipt by the person who produces, designs, pronounces or delivers the document. If a bank returns an uncashed cheque with one of the following endorsements, the lawsuit could be filed under the state`s worthless cheques law: There are many situations where charges can be solved without ending in a conviction. Because of the significant negative impact that a criminal conviction for fraud or theft can have on life, it is important that anyone accused of such crimes seek immediate legal assistance. (c) Dealing in a worthless negotiable instrument is a Class A administrative offence. Under this section of the Act, there are two ways to provide prima facie evidence against a cheque drawer that the person knew the instrument would be dishonoured. 2. The number of a cheque exchange card issued by the receiving party may be recorded on the negotiable document. Such cheque exchange card shall not be issued until the information required under this paragraph has been provided by the receiving Party. (2) Within 30 days after receiving the cheque, the financial institution shall refuse to return the instrument upon presentation to the dealer because of insufficient funds on the part of the issuer of the cheque. In addition, the cheque clerk must refuse to pay the merchant the face value of the cheque plus a service charge of $30.00 within 10 days of receiving the merchant`s notice of rebate by registered or registered mail. Errors by the recipient of the worthless cheque can also protect you from civil action.

For example, the recipient did not notify you in writing at least 20 days in advance of their intention to lay charges, attempted to charge you civil penalties before filing the complaint, or agreed to a refund of the cheque. In other words, once it is determined that a bad cheque has been written, the burden of proof shifts from the prosecutor to the defendant. Instead of having the prosecutor have the task of proving that the accused was aware of the lack of money, it is up to the defendant to prove that he did not know and that it was a bona fide error. Civil arbitration awards awarded in a worthless cheque case can literally add up. In addition to paying the face value of the cheque to the recipient, you may also be required to pay other separate damages, court costs, attorneys` fees and exemplary damages equal to three times the value of these two amounts (not to exceed $500). An experienced lawyer with experience in financial fraud cases can investigate your case and determine if you have a valid defense against worthless cheque charges. In many cases, this defence depends on whether the issuer of the worthless cheque did so intentionally and with intent to deceive. Whether you call it an NSF check, a rubber check, or any other common nickname, a worthless check can get you in all sorts of trouble if you intentionally pass one. This act is considered a form of fraud that exposes you to criminal charges that can result in jail time or fines. For more information on NSF checks, merchants are strongly advised to contact your district attorney`s office to determine if there is a worthless control unit that can offer assistance. Let`s start with the fact that a worthless cheque is NOT. The law does not criminalize simply writing a cheque if there is not enough money in your bank account.

This is important because if that were the case, there would be many more people in jail now. If the recipient knew in advance that the account did not contain enough money but still accepted the check, your lawyer can use this point to defend you against worthless check fees. The court may also dismiss the charge if you can prove that you backdated the cheque or were able to stop the payment. That said, prosecutors in Fort Lauderdale`s worthless check cases typically deal primarily with making amends to victims. If the evidence against you is substantial and reimbursement can be initiated before trial, the prosecutor may agree to a diversion program instead of a jail sentence. However, it is important to have an experienced defense lawyer by your side during negotiations, otherwise the plea might not be a good deal at all. You may also face worthless cheque fees if you write a cheque into a legitimate account that does not have sufficient funds to cover the amount of the cheque. If the cheque bounces back, you will receive an official notice of non-payment. If you do not resolve this issue within five days, the recipient may file a complaint against you. Even if you knew the account didn`t have enough funds when you wrote the cheque, you may have made an effort to make up for the shortfall by notifying the financial institution with a promise to fund the account.

If you can prove that the financial institution acknowledged and responded to this request, you cannot be convicted. This information can be extracted from the control itself; or the number on the cheque exchange card issued by the merchant. Merchants cannot issue a check cashing card until the legally required information about the checker has been stored in the merchant`s store. When a person issues a cheque, a dealer or an employee of the merchant must witness the cheque writer`s signature and initial the instrument. Merchants are encouraged to request government-issued photo identification, which is permitted by law (current and valid, including any federal branch, department or agency) to accept cheques. A passport is also acceptable. The address on the ID must match the address on the cheque. If photo identification is not available, a merchant may refuse the check or authorize two or three forms of identification without a photo: a social security card, a statement of the author with the name and address of the author, a valid U.S. military ID card, a birth certificate (certified copy), a naturalization document (certified copy), a valid Medicaid card, a valid Medicare card, a valid Electronic Benefits Transfer (EBT) card, or other Government Document showing the author`s name and address. Merchants who file a statement of fees that is identical or substantially similar to the legal form are protected from civil or criminal liability for making the notice and bringing legal action based on the notice. 1. The issuer of the cheque does not have an account with the financial institution with which the cheque is drawn at the time the instrument is traded; or «This legal notice is provided pursuant to Section 13A-9-13.2 of the Alabama Code.

You are informed that a check or deed bearing the number ………, which was obviously issued by you on.. (date) issued on ………… (name of bank) and payable to……….. was dishonoured. Another possible defence involves the possibility that someone other than you may have committed this form of fraud without your knowledge, encouragement or consent. If another party issued the worthless cheque on your behalf, you should have no legal responsibility in the case, forcing the court to drop the charges against you. In response to the growing demand from Alabama citizens for stricter crime laws, the Alabama legislature enacted the Worthless Checks Act (Act No. 91-319) during the 1991 regular session to deter and prosecute individuals who violate the law by trading NSF checks and other forms of negotiable instruments. In 2014, the legislator amended the law (Law No. 14-444) to include electronic projects in the definition of negotiable instruments for the purposes of the section of the law dealing with worthless instruments. If properly enforced, this law will provide merchants and prosecutors with an effective way to combat violators of bad cheques and drafts.

Below is a compilation of the laws that govern worthless cheques/instruments. Depending on the amount confirmed in this audit, conditional sentences can be up to several years in prison. It should be noted that while this window of opportunity is granted in certain circumstances to allow correction by those who made a bona fide error, payment alone is not necessarily a defence to that charge. In fact, the law is very clear that paying the uncashed cheque, bill of exchange, bill of exchange or debit card is NOT a DEFENCE, nor is it a reason to reject fees. (a) A person commits the crime of dealing in a worthless negotiable instrument when trading or providing a negotiable instrument for an item of value and with the intention, knowledge or expectation that the drawer will not comply with it.