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Bad Check: A person who issues a check, which is dishonored for lack of funds or credit to pay, or because the issuer has no account with the drawee, is liable to the holder for the amount of the check and a service charge in a reasonable amount, not to exceed $30.00. To recover the service charge, the holder must make a demand in writing. The written demand must state that the maker is required to pay the face amount of the check and the service charge, and must be mailed to the address shown on the bad check or the maker's last known address. If the maker of the bad check fails to pay the amounts demanded within ten (10) days from the date of the written demand, the holder of the check, or his assignee, may pursue legal action to recover damages for the service charge plus the greater of $100.00, or three times the amount of the check, but not to exceed the value of the check by more than $500.00. (MCA 27-1-717.) If a person delivers a check to another knowing that it will not be paid by the depository or fails to make good the check within five (5) days after receiving written notice of nonpayment, he may also be subject to criminal penalties which may include monetary fine of $500 or imprisonment for any term not exceeding 6 months if the value of the check or property is less than $500.00. However, if the bad check amount is in excess of $500.00, the fine may be up to $50,000 or imprisonment in the state prison for any term not to exceed 10 years, or both. (MCA 45-6-316.) |
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