Civil Bad Check Law in Tennessee
Tennessee Code Section 47-29-101 provides the basic provisions and process for recovering civil penalties from a person who issues a fraudulently written, dishonored check. The violator also can face criminal charges and a possible assessment of court fines.
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General Rule
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Generally, civil penalties for issuing a fraudulently written check include a returned check fee of up to $30, as per Section 47-29-102, and triple damages based on the face value of the dishonored check. The maximum civil penalty is $500. Attorney fees and interest also can be assessed.
Exemptions
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Post-dated checks are not usually subject to an assessment of triple damages, as per Uniform Commercial Code Section 3-104(2)(b); although the aggrieved recipient of a dishonored check can still collect actual damages incurred. Also, triple damages cannot be recovered if the check recipient knew at the time the check was issued that there were insufficient funds in the issuer's checking account to cover the face value of the check.
Section 47-29-101 is inapplicable if the check issuer pays the face value of the check plus a reasonable returned check handling fee (not more than $30), within ten days after the holder notifies the issuer that the check has been dishonored.
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UCC Remedies
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The recipient of a dishonored check also may be permitted to exercise all of the rights provided under Tennessee's Uniform Commercial Code sections as per Section 47-29-103.
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References
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