Bad Check:

Section 332.50 of the Minnesota Statutes 1997 provides that whoever issues any check   that is dishonored is liable for the following penalties:

      (a) A service charge of up to $20, or actual costs of   collection not to exceed $30, may be imposed immediately on any
dishonored check, regardless of mailing a notice of dishonor, if  notice of the service charge was conspicuously displayed on the premises when the check was issued. Only one service charge may be imposed under this paragraph for each dishonored  check.

      (b) If the amount of the dishonored check is not paid within 30 days after the payee or holder has mailed notice of
 dishonor pursuant to section 609.535 and a description of the penalties contained in this subdivision, whoever issued the
 dishonored check is liable to the payee or holder of the check  for:

            (1) the amount of the check, the service charge as provided  in paragraph (a), plus a civil penalty of up to $100 or the
 value of the check, whichever is greater.  The civil penalty may not be imposed until 30 days following the mailing of the notice
 of dishonor.  A payee or holder of the check may make a written demand for payment of the civil liability by sending a copy of  this section and a description of the liability contained in this section to the issuer's last known address.   Notice as
 provided in paragraph (a) must also include notification that  additional civil penalties will be imposed for dishonored checks
 for nonpayment after 30 days;

            (2) interest at the rate payable on judgments pursuant to section 549.09 on the face amount of the check from the date of  dishonor; and
 
            (3) reasonable attorney fees if the aggregate amount of  dishonored checks issued by the issuer to all payees within a
 six-month period is over $1,250.

Notice of nonpayment or dishonor that includes a citation to this section and section 609.535, and a description of the penalties contained in these sections, shall be sent by the payee or holder of the check to the drawer by certified mail, return receipt requested, or by regular mail, supported by an affidavit of service by mailing, to the address printed or written on the check.  The issuance of a check with an address printed or written on it is a representation by the drawer that the address is the correct address for receipt of mail concerning the check.  Failure of the drawer to receive a regular or certified  mail notice sent to that address is not a defense to liability under this section, if the drawer has had actual notice for 30 days that the check has been dishonored.

An affidavit of service by mailing shall be retained by the payee or holder of the check.