Montana Notice of Bad Check or NSF Check - Civil Laws
This is a Notice of Bad Check or NSF Check - Civil. A "dishonored check" (also known as a "bounced check" or "bad check") is a Bad Check or NSF check which the bank will not pay because there is no such checking account, or there are insufficient funds in the account to pay the Bad Check or NSF check. In order to attempt the greatest possible recovery on a Bad Check or NSF check, the business owner, or any other person given a Bad Check or NSF check, may be required by state law to notify the debtor that the Bad Check or NSF check was dishonored.
Montana Bad Check Law Summary - Montana Notice of Bad Check or NSF Check - Civil Laws
Montana Bad Check Law Summary
Notice of Bad Check or NSF Check
Note: This summary is not intended to be an all inclusive summary of the Montana bad check laws, but does contain basic and other provisions.
Montana Statutes
TITLE 27 - CIVIL LIABILITY, REMEDIES, AND LIMITATIONS
CHAPTER 1 - AVAILABILITY OF REMEDIES LIABILITY
Part 7 - Liability
27-1-717. Issuing a bad bad check or NSF check or stopping payment - civil
liability.
(1) A person who issues a bad check or NSF check, draft, or order for the
payment of money is liable for a service charge, as provided in subsection (2),
or for damages in a civil action, as provided in subsection (3), to the payee to
whom the bad check or NSF check, draft, or order is issued, or the payee's
assignee, if the bad check or NSF check, draft, or order is: (a) dishonored for
lack of funds or credit or because the issuer has no account with the drawee; or
(b) issued in partial or complete fulfillment of a valid and legally binding
obligation and the issuer stops payment with the intent to fraudulently defeat a
possessory lien or otherwise defraud the payee of the bad check or NSF check.
(2) The person who issues the bad check or NSF check, draft, or order is liable
to the payee or the payee's assignee for a service charge in a reasonable
amount, not greater than $30. The payee or the payee's assignee may waive the
service charge. Demand for the service charge must be made in writing by the
payee or the payee's assignee and mailed to the address shown on the bad check
or NSF check, draft, or order or to the issuer's last-known address. The demand
must state that the issuer is required to pay the value of the bad check or NSF
check, draft, or order and service charge and must state the service charge
provided for in this section.
(3) The amount of damages awarded pursuant to subsection (1) must be an amount
equal to the service charge plus the greater of $100 or three times the amount
for which the bad check or NSF check, draft, or order was issued. However,
damages may not exceed the value of the bad check or NSF check, draft, or order
by more than $500.
(4) The remedy provided by subsection (3) is available only if: (a) the payee or
the payee's assignee has made the written demand required in subsection (2) not
less than 10 days before commencing the action; and
(b) the issuer has failed to tender an amount of money equal to the amount
demanded under subsection (2) prior to the commencement of the action. (5) The
remedy provided by this section: (a) may be pursued notwithstanding the
provisions of 27-1-312;
(b) may be pursued whether or not a criminal penalty is sought under 45-6-316 or
any other statute providing a criminal penalty; and
(c) does not affect the obligation of the issuer provided for in 30-3-423 to pay
the amount of the draft. However, in case of any inconsistency with the
provisions of Title 30, chapter 3, the provisions of this section apply. (6)
Upon introduction by the payee or the payee's assignee of evidence sufficient to
establish the fact of mailing as required under subsection (2), the failure to
receive the written demand is not a defense to the action allowed under
subsection (3).
CRIMINAL PROVISIONS
Montana Statutes
TITLE 45 - CRIMES
CHAPTER 6 - OFFENSES AGAINST PROPERTY
Part 3 - Theft and Related Offenses
45-6-316. Issuing a bad bad check or NSF check.
(1) A person commits the offense of issuing a bad bad check or NSF check when
the person issues or delivers a bad check or NSF check or other order upon a
real or fictitious depository for the payment of money knowing that it will not
be paid by the depository.
(2) If the offender has an account with the depository, failure to make good the
bad check or NSF check or other order within 5 days after written notice of
nonpayment has been received by the issuer is prima facie evidence that the
offender knew that it would not be paid by the depository.
(3) A person convicted of issuing a bad bad check or NSF check shall be fined
not to exceed $1,000 or be imprisoned in the county jail for any term not to
exceed 6 months, or both. If the offender has engaged in issuing bad bad check
or NSF checks that are part of a common scheme or if the value of any property,
labor, or services obtained or attempted to be obtained exceeds $1,000, the
offender shall be fined not to exceed $50,000 or be imprisoned in the state
prison for any term not to exceed 10 years, or both.