South Dakota 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.
South Dakota Bad Check Law Summary - South Dakota Notice of Bad Check or NSF Check - Civil Laws
South Dakota 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 South Dakota bad check laws, but does contain basic and other provisions.
TITLE 21
CHAPTER 21-57
§ 21-57-1. Liability for dishonored bad check or NSF checks, drafts or orders -
Minimum and maximum amounts - Court costs and interest - Satisfaction.
In any civil action brought for the purpose of collecting a bad check or NSF
check, draft, or order of payment, any person who makes, draws, or issues any
bad check or NSF check, draft, or order of payment that is dishonored and is not
paid within thirty days after mailing of a notice of dishonor sent in compliance
with §§ 21-57-4 and 21-57-5 is liable to the holder or assignee for collection
for an amount equal to three times the face amount of the bad check or NSF
check. However, in no case, including any combination pursuant to § 21-57-6, may
the liability for damages be less than one hundred dollars nor greater than two
hundred dollars. The maker, drawer, or issuer is also liable to the holder or
assignee for allowable court costs, filing fees, and interest computed at the
legal rate from the date of the bad check or NSF check, draft, or order that
payment was issued. Subsequent to the commencement of an action as provided for
in this section, but prior to the court hearing, the maker, drawer, or issuer
may tender to the holder or assignee, as satisfaction of the claim, an amount of
money equal to the face amount of the bad check or NSF check together with the
returned bad check or NSF check fee as provided for under § 57A-3-421 together
with accrued interest and incurred court costs.
TITLE 21
CHAPTER 21-57
§ 21-57-2. Final judgment required before liability asserted.
No holder or assignee for collection may assert that any maker, drawer, or
issuer has any liability pursuant to § 21-57-1 unless such liability has been
determined by entry of a final judgment by a court of competent jurisdiction.
TITLE 21
CHAPTER 21-57
§ 21-57-3. No liability in certain circumstances.
The maker, drawer, or issuer is not liable for the damages and costs specified
in § 21-57-1 if: (1) The account contained sufficient funds or credit to cover
the bad check or NSF check, draft, or order at the time the bad check or NSF
check, draft, or order was issued, plus all other bad check or NSF checks,
drafts, and orders on the account then outstanding and unpaid; or
(2) The bad check or NSF check, draft, or order was not paid because a paybad
check or NSF check, deposited in the account in an amount sufficient to cover
the bad check or NSF check, draft, or order, was not paid upon presentation; or
(3) Funds sufficient to cover the bad check or NSF check, draft, or order were
garnished, attached, or setoff and the maker, drawer, or issuer had no notice of
such garnishment, attachment, or setoff at the time the bad check or NSF check,
draft, or order was issued; or
(4) The maker of the bad check or NSF check, draft, or order was not competent
or of full age to enter into a legal contractual obligation at the time the bad
check or NSF check, draft, or order was issued; or
(5) The making of the bad check or NSF check, draft, or order was induced by
fraud or duress; or
(6) The transaction which gave rise to the obligation for which the bad check or
NSF check, draft, or order was given lacked consideration or was illegal.
TITLE 21
CHAPTER 21-57
§ 21-57-4. Notice of dishonor - Writing - Service.
Notice that a bad check or NSF check, draft, or order has not been paid upon
presentment shall be in writing and given in person and receipted for, or by
personal service, or by depositing the notice by certified mail, return receipt
requested and postage prepaid, in the United States mail and addressed to such
person at the address shown on the bad check or NSF check or at the most recent
address known to the sender. If the notice is mailed and not returned as
undeliverable by the United States Postal Service, notice shall be conclusively
presumed to have been given on the date of mailing. For the purposes of this
section, the term, undeliverable, does not include unclaimed or refused.
TITLE 21
CHAPTER 21-57
§ 21-57-5. Notice of dishonor - Information required.
The notice given pursuant to § 21-57-4 shall include the following information
regarding the unpaid bad check or NSF check, draft, or order: (1) The date the
bad check or NSF check, draft, or order was issued;
(2) The name of the bank, depository, person, firm, or corporation on which it
was drawn;
(3) The name of the payee;
(4) The face amount;
(5) A statement of total amount claimed, which shall be itemized and may not
exceed the amount permitted pursuant to § 21-57-1.
(6) A statement that the maker has thirty days from the date notice was given to
make payment in full of the total amount claimed; and
(7) A statement that, if the total amount is not paid within thirty days after
the date notice was given, the maker is liable in a civil action for three times
the face amount of the bad check or NSF check but not less than one hundred
dollars nor greater than two hundred dollars and that, in such civil action, the
court may award court costs to the payee, holder, or assignee for collection.
TITLE 21
CHAPTER 21-57
§ 21-57-6. Instruments and actions for recovery may be combined -- Venue.
If the same person is the maker, drawer, or issuer of two or more bad check or
NSF checks, drafts, or orders, such instruments may be combined. An action for
their recovery pursuant to § 21-57-1 may be brought in any county in which one
of the dishonored bad check or NSF checks, drafts, or orders were issued or in
the county in which the bad check or NSF check writer resides. A cause of action
under this section may be brought in small claims court, if the amount of the
demand does not exceed the jurisdiction of that court, or in any other
appropriate court.
TITLE 21
CHAPTER 21-57
§ 21-57-7. Criminal prosecution not precluded.
Nothing in §§ 21-57-1 to 21-57-7, inclusive, prevents the criminal prosecution
of the person who makes, draws, or issues a dishonored bad check or NSF check,
draft, or order.
TITLE 57A
CHAPTER 57A-3
PART 4
§ 57A-3-421. Collection costs and expenses -- Liability of issuer of dishonored
bad check or NSF check.
If a merchant or place of business conspicuously posts a notice on its premises
or if a merchant or place of business regularly extends credit and prints a
notice on its customer statements of such size and location as to be
conspicuous, stating that a fee will be assessed against returned bad check or
NSF checks, any person who issues a bad check or NSF check or other draft to the
merchant or place of business which is not honored for any of the following
reasons upon presentment is liable for all reasonable costs and expenses of
collection: (1) The drawer's account is closed;
(2) The drawer's account does not have sufficient funds; or
(3) The drawer does not have sufficient credit with the drawee. The costs and
expenses provided for in this section are reasonable if they do not exceed
thirty dollars.