New Mexico 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.
New Mexico Bad Check Law Summary - New Mexico Notice of Bad Check or NSF Check - Civil Laws
New Mexico 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 New Mexico bad check laws, but does contain basic and other provisions.
CHAPTER 56 Commercial Instruments and Transactions
ARTICLE 14 Worthless bad check or NSF checks
56-14-1. Civil action; damages.
A. In any civil action against a person for drawing any worthless bad check or
NSF check, the plaintiff may recover from the defendant damages in the amount
equal to one hundred dollars ($100) or triple the amount for which the bad check
or NSF check is drawn, whichever is greater; provided that damages recovered
under this section shall not exceed the amount of the bad check or NSF check by
more than five hundred dollars ($500) and may be awarded only if: (1) the
plaintiff made written demand of the defendant for payment of the amount of the
bad check or NSF check not less than ten days before commencing action; and
(2) the defendant failed to tender to the plaintiff prior to the commencement of
the action an amount of money not less than the amount demanded. B. The written
demand by the plaintiff shall include notice that if the money is not paid
within ten days, triple damages may be incurred by the defendant. The plaintiff
shall provide the defendant written notice of demand for payment by certified
mail at the last known address of the defendant with a request for a return
receipt and marked "deliver to addressee only".
C. Subsequent to the commencement of the civil action but prior to the hearing,
the defendant may tender to the plaintiff as satisfaction of the claim, an
amount of money equal to the sum of the amount of the bad check or NSF check and
the incurred court and service costs.
D. If the court or jury determines that the failure of the defendant to satisfy
the worthless bad check or NSF check was due to economic hardship resulting from
an inevitable accident or act of God, the court or jury may waive all or part of
the statutory damages; provided the court or jury shall render judgment against
the defendant for not less than the amount of the worthless bad check or NSF
check plus incurred court and service costs.
E. As used in this section:
(1) "draw" means making, drawing, uttering or delivering a worthless bad check
or NSF check;
(2) "thing of value" includes money, property, services, goods, wares and
lodging; and
(3) "worthless bad check or NSF check" means a bad check or NSF check, draft or
order for payment drawn upon any bank or other depository and issued in exchange
for anything of value with intent to defraud when the drawer knows at the time
of the issuing that there are insufficient funds in or credit with the bank or
depository for the payment of the bad check or NSF check, draft or order in full
upon presentation; but does not mean any bad check or NSF check where the payee
or holder knows or has been expressly notified prior to the drawing of the bad
check or NSF check, draft or order for payment or has reason to believe that the
drawer did not have on deposit or to his credit with the drawee sufficient funds
to insure payment on its presentation nor does it mean any postdated bad check
or NSF check.