Text: HF00319 Text: HF00321 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 554.3512 CIVIL REMEDY FOR
1 2 DISHONOR.
1 3 1. In a civil action against a person who makes a check,
1 4 draft, or order, which has been dishonored for lack of funds
1 5 or credit or because the maker has no account with the drawee,
1 6 the plaintiff may recover from the defendant damages triple
1 7 the amount for which the dishonored check, draft, or order is
1 8 drawn. However, damages under this section shall not exceed
1 9 by more than five hundred dollars the amount of the check,
1 10 draft, or order and may be awarded only if all of the
1 11 following apply:
1 12 a. The plaintiff made written demand by restricted
1 13 certified mail of the defendant for payment of the amount of
1 14 the check, draft, or order not less than thirty days before
1 15 commencing the action.
1 16 b. The defendant has failed to tender to the plaintiff,
1 17 prior to commencement of the action, an amount of money not
1 18 less than the amount demanded.
1 19 c. The plaintiff clearly and conspicuously posted a notice
1 20 at the usual place of payment, or in a billing statement of
1 21 the plaintiff, stating that civil damages pursuant to this
1 22 section would be sought upon dishonorment.
1 23 2. In an action for damages pursuant to subsection 1, if
1 24 the court or jury determines that the failure of the defendant
1 25 to satisfy the dishonored check, draft, or order is due to
1 26 economic hardship, the court or jury may waive all or part of
1 27 the allowable civil damages. However, if the court or jury
1 28 waives all or part of the civil damages, the court or jury
1 29 shall render judgment against the defendant in the amount of
1 30 the dishonored check, draft, or order and the actual costs
1 31 incurred by the plaintiff in bringing the action.
1 32 3. This section does not apply if the reason for the
1 33 dishonor of the check, draft, or order is that the maker has
1 34 stopped payment pursuant to section 554.4403 because of a bona
1 35 fide dispute between the maker and the holder relating to the
2 1 consideration for which the check, draft, or order was given.
2 2 4. In actions brought pursuant to this section, no
2 3 additional award pursuant to section 625.22 shall be made.
2 4 EXPLANATION
2 5 The bill provides that in a civil action against a person
2 6 who makes a check, draft, or order which has been dishonored
2 7 for lack of funds or credit or because the maker has no
2 8 account with the drawee, the plaintiff may recover from the
2 9 defendant damages triple the amount for which the dishonored
2 10 check, draft, or order is drawn. The bill provides that the
2 11 total amount of damages cannot exceed $500 more than the
2 12 amount of the check, draft, or order. The damages are
2 13 contingent upon a number of conditions. First, the plaintiff
2 14 must have made written demand by restricted certified mail of
2 15 the defendant within 30 days before commencing the action; the
2 16 defendant must have failed to pay the plaintiff the amount of
2 17 money demanded; and the plaintiff must have clearly and
2 18 conspicuously posted a notice at the usual place of payment,
2 19 or in a billing statement. The bill provides that a court may
2 20 waive damages if the check was dishonored due to economic
2 21 hardship. However, the court must render judgment against the
2 22 defendant in the amount of the dishonored check, draft, or
2 23 order and the actual costs incurred by the plaintiff in
2 24 bringing the action.
2 25 The bill excuses dishonor in cases where a maker of an
2 26 instrument stops payment.
2 27 LSB 2429HH 76
2 28 da/jw/5
Text: HF00319 Text: HF00321 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Mon Mar 4 09:34:06 CST 1996
URL: /DOCS/GA/76GA/Legislation/HF/00300/HF00320/950309.html
jhf