(a) The drawer gave such check as payment for the rental of
residential premises; or
(b) The drawer gave such check as payment for residential service
supplied by a gas, electric, steam, telephone or water corporation; or
(c) The drawer gave such check as repayment of all, or a portion of, a
debt secured by collateral which the payee has repossessed.
5. Defenses which may be asserted against any person not having the
rights of a holder in due course, as specified in sections 3-306 and
3-408 of the uniform commercial code, shall be available to a defendant
in any action or proceeding in which additional liability is claimed
under this section.
6. The additional liquidated damages provided for in this section
shall be available only to those persons or entities which post or
otherwise give conspicuous notice to the public of the additional,
liquidated damages which may be imposed pursuant to this section. Such
notice shall set forth the additional liquidated damages that may be
imposed if a check is dishonored and the section of law authorizing
imposition of such damages, and provide notice that criminal penalties
also may apply.
7. The first written demand for payment on the dishonored check shall
be in the form prescribed by subdivision eight of this section and shall
be sent to the drawer's last known residence address or last known place
of business by first class mail and by certified mail return receipt
requested with delivery restricted to the drawer, on or after the date
the payee received notice that such check had been dishonored. The
second written demand for payment on the dishonored check shall be in
the form provided in subdivision eight of this section and shall be sent
to the drawer at the drawer's last known residence address or last known
place of business by first class mail on or after the fifteenth day
following the date of receipt of the first written demand for payment.
8. The written demands for payment required by subdivision seven of
this section, shall be in the following form and shall be printed in at
least ten point type in both the English and Spanish languages:
DEMAND FOR PAYMENT OF DISHONORED CHECK
DATE: 1ST NOTICE
2ND AND FINAL NOTICE
TO: _____________________ WARNING: YOU MAY BE
NAME OF DRAWER SUED 30 DAYS AFTER
_____________________ THE DATE OF THIS
_____________________ NOTICE IF YOU DO
_____________________ NOT MAKE PAYMENT
LAST KNOWN RESIDENCE ADDRESS
OR PLACE OF BUSINESS
YOUR CHECK IN THE AMOUNT OF $___________ DATED____________________
PAYABLE TO THE ORDER OF__________________ HAS BEEN DISHONORED BY
THE BANK UPON WHICH IT WAS DRAWN, BECAUSE:
________YOU HAD NO ACCOUNT WITH THAT BANK.
________YOU HAD INSUFFICIENT FUNDS ON DEPOSIT WITH THAT BANK.
IF YOU DO NOT MAKE PAYMENT, YOU MAY BE SUED UNDER SECTION 11-104 OF THE
GENERAL OBLIGATIONS LAW TO RECOVER PAYMENT. IF A JUDGMENT IS RENDERED
AGAINST YOU IN COURT, IT MAY INCLUDE NOT ONLY THE ORIGINAL FACE AMOUNT
OF THE CHECK, BUT ALSO ADDITIONAL LIQUIDATED DAMAGES, AS FOLLOWS:
--IF YOU HAD NO ACCOUNT WITH THE BANK UPON WHICH THE CHECK WAS DRAWN,
AN ADDITIONAL SUM WHICH MAY BE EQUIVALENT TO TWICE THE FACE AMOUNT OF
THE CHECK OR SEVEN HUNDRED FIFTY DOLLARS, WHICHEVER IS LESS; OR
--IF YOU HAD INSUFFICIENT FUNDS ON DEPOSIT WITH THE BANK UPON WHICH
THE CHECK WAS DRAWN, AN ADDITIONAL SUM WHICH MAY BE EQUIVALENT TO TWICE
THE FACE AMOUNT OF THE CHECK OR FOUR HUNDRED DOLLARS, WHICHEVER IS LESS.
PLEASE MAKE PAYMENT IN THE AMOUNT OF_______ TO:
____________________________________________________________________
NAME OF PAYEE
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
ADDRESS TO WHICH PAYMENT SHOULD BE DELIVERED
IF YOU DISPUTE ANY OF THE FACTS LISTED ABOVE, CONTACT THE PAYEE
IMMEDIATELY.
9. The public service commission shall study the extent to which
checks given in payment for residential service supplied by a gas,
electric, steam, telephone or water corporation are dishonored either
because the drawer had no account with the bank on which the check was
written or because the drawer had insufficient funds on deposit with
such bank, including the extent of chronic payment with checks that
are dishonored and the impact of such dishonored checks on the
operating costs of these corporations and their requests for rate
increases, and whether any penalty for dishonored checks, in addition
to recovery of the utilities' administrative costs, is necessary. The
commission shall report to the governor and the legislature no later
than one year after the effective date of this section.
Structure New York Laws
Article 11 - Obligations to Make Compensation or Restitution
11-101 - Compensation for Injury Caused by the Illegal Sale of Intoxicating Liquor.
11-103 - Compensation for Injury Caused by the Illegal Sale of Controlled Substances.
11-104 - Additional Liability of Drawer.
11-105 - Larceny in Mercantile Establishments.
11-106 - Compensation for Injury or Death to Police Officers and Firefighters or Their Estates.
11-107 - Compensation for Harm to a Guide, Hearing or Service Dog.