Bad Check:

A person who, with fraudulent intent, issues a check which is dishonored either by stopped payment, or because of the lack of funds or failure to have an account with the drawee bank, or lack of an authorized signature, may be subject to civil liability for the face amount of the dishonored check, interest at the rate of 10% per annum, reasonable service charges, court costs and attorney fees if a civil action is brought to recover the check amount.  (47-29-101(a).)  The service or handling charge may not exceed $20.00.  (47-29-101(f).)  The maker of the dishonored check may avoid these liabilities if within ten (10) days after notice of dishonored is given by the holder of the check to him, he pays the holder the full amount of the check. (47-29-101(b).)   Notice of dishonor is considered to have been given if it is deposited in the regular United States mail and addressed to the maker at the address printed on the check or at the address given in writing by the maker to the holder at the time the check was given. (47-29-101(c).)

If the written notice is sent by the holder to the maker of the dishonored check by certified mail, and the maker failed to pay the full amount of the check within thirty (30) days, the maker of the dishonored check may be responsible for treble damages not to exceed $500.00 if fraudulent intent is found.  (42-29-101(d).)

The holder of a dishonored check may also elect to pursue his claim under Tennessee's Criminal Statute, Title 39, Chapter 14.   Under subsection (f) of section 39-14-121, passing a worthless check may be punishable as theft of property or services which is a misdemeanor if the amount is $500.00 or less, or a felony if it is above $500.00.