Texas Statutes
Chapter 502 - Protection of Identifying Financial Information
Section 502.003. Delivery of Check Form

Sec. 502.003. DELIVERY OF CHECK FORM. (a) In this section:
(1) "Addressee" means a person to whom a check form is sent.
(2) "Check form" means a device for the transmission or payment of money that:
(A) is not a negotiable instrument under Section 3.104;
(B) if completed would be a check as defined by Section 3.104; and
(C) is printed with information relating to the financial institution on which the completed check may be drawn.
(3) "Check form provider" means a business that provides check forms to a customer for a personal or business account.
(4) "Courier" means an entity that delivers parcels for a fee.
(b) If an addressee requests that a check form provider employ courier delivery of a check form with signature required, and that service is available in the delivery area of the addressee, the entity arranging for courier delivery in compliance with the addressee's request must provide the addressee with the option to require that the signature of the addressee, or the representative of the addressee, be obtained on delivery.
(c) The option under Subsection (b) to require the signature of the addressee or representative may be provided:
(1) on a printed check form order form;
(2) on an electronic check form order form where check form orders are offered on the Internet;
(3) by electronic mail to an address established for that purpose by the entity making the offer; or
(4) by another method reasonably designed to effectively communicate the addressee's intent.
(d) An entity that arranges for the courier delivery of a check form to an addressee as requested under Subsection (b) shall notify the courier of the check form that the signature of the addressee or a representative of the addressee is required for delivery under that subsection.
(e) If the addressee suffers a pecuniary loss because of the use of a check form stolen at the time of delivery to the addressee, a civil penalty of not more than $1,000 for each delivery may be imposed on:
(1) an entity that violates Subsection (b), (c), or (d); or
(2) a courier that:
(A) is properly notified under Subsection (d) that a signature is required for delivery; and
(B) delivers the check form without obtaining the signature of the addressee or a representative of the addressee.
(f) The attorney general may bring an action to recover a civil penalty imposed under Subsection (e). The attorney general may recover reasonable expenses incurred in obtaining the civil penalty, including court costs, reasonable attorney's fees, investigative costs, witness fees, and deposition expenses.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

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