Bad Check:

Any person who issues a check which is dishonored, either because the maker has no account with the bank on which it is drawn or because the maker has insufficient funds on deposit therein, is liable to the payee the amount of the check and additional damages, as determined by the court, in an amount not less than $100.00 and not more than $500.00, if he fails to pay the maker the amount of the dishonored check within 30 days following a written demand.  The written demand must be sent to the maker by regular mail and by certified mail with return receipt requested, and must be printed in at least ten point type in both the English and Spanish language and in substantially the following format:  (c. 93, s. 40A.)  DEMAND FOR PAYMENT OF DISHONORED CHECK

DATE:_________________________________
TO:___________________________________
         (Name of Maker) WARNING: YOU MAY BE SUED 30 DAYS AFTER THE DATE OF THIS NOTICE IF YOU DO NOT MAKE PAYMENT

_______________________________________
_______________________________________
_______________________________________
(Last know residence address or place of business)

YOUR CHECK/DRAFT/ORDER IN THE AMOUNT OF $_______________ DATED_________________PAYABLE TO THE ORDER OF_______________________________HAS BEEN DISHONORED BY THE BANK OR OTHER DEPOSITORY UPON WHICH IT HAS BEEN DRAWN BECAUSE:

    _____ THE MAKER HAD NO ACCOUNT WITH SUCH BANK OR DEPOSITORY
    _____ THE MAKER HAD INSUFFICIENT FUNDS ON DEPOSIT WITH SUCH BANK OR DEPOSITORY

IF YOU DO NOT MAKE PAYMENT WITHIN THIRTY DAYS OF THE ABOVE DATE, YOU MAY BE SUED TO RECOVER PAYMENT. IF A JUDGMENT IS RENDERED AGAINST YOU IN COURT, IT WILL INCLUDE NOT ONLY
THE ORIGINAL FACE AMOUNT OF THE CHECK/DRAFT/ORDER, BUT ALSO ADDITIONAL LIQUIDATED DAMAGES OF NOT LESS THAN ONE HUNDRED DOLLARS ($100.00) NOR MORE THAN FIVE HUNDRED
DOLLARS ($500.00).

PLEASE MAKE PAYMENT IN THE AMOUNT OF $____________________ TO: _______________________________________ Name Of Payee _______________________________________ _______________________________________ _______________________________________ Address to which payment should be delivered

Copies of the General Laws of Massachusetts are available from the State of Massachusetts here.  

Chapter 93: Section 40A. Dishonored checks; demand for payment.

This information is presented only for illustration purposes for accounts receivable professionals. Always discuss actual transactions with your actual legal advisor or legal department.