Chapter 228

2003 -- S 0279 AS AMENDED

Enacted 07/15/03

AN ACT

RELATING TO BANKING LAW -- DISHONORED CHECKS

Introduced By: Senators Badeau, and Cote

Date Introduced: February 05, 2003

It is enacted by the General Assembly as follows:

     SECTION 1. Section 6-42-2 of the General Laws in Chapter 6-42 entitled "Checks and

Other Instruments - Dishonor" is hereby amended to read as follows:

6-42-2. Term of notes -- Form of notice of dishonor. -- (a) A notice of dishonor sent

by a holder to a maker or drawer pursuant to section 6-42-1 shall substantially comply with the

following form:

     NOTICE OF DISHONORED CHECK

     DATE _______________________________________________________

     NAME OF ISSUER ________________________________________________

     STREET ADDRESS ________________________________________________

      CITY AND STATE ________________________________________________

     You are according to law hereby notified that a check or instrument numbered ________

and dated ________ 20________, drawn on ________ (bank or other financial institution) of

________, in the amount of ________ has been returned unpaid with the notation that the

payment has been refused because of rule. Within thirty (30) days from the mailing of this notice,

you must pay or tender to _____________________________ (holder) at

_______________________________________________sufficient money to pay the check

     (address of holder) draft or instrument in full. If payment of the above amount is not made

within thirty (30) days of the mailing of this notice of dishonor, you may be liable under section

6-42-3, in addition to the amount of the check, draft, or other instrument and a collection fee of

twenty-five dollars ($25.00), for an amount of up to three (3) times the amount of the check, draft

or other instrument, but in no case less than two hundred dollars ($200) and not more than one

thousand dollars ($1,000).

      _______________________________________________

     (signature of holder)

     (b) The notice provided for in subsection (a) shall be sent certified mail, return receipt

requested. or by regular mail when such mailing is supported by an affidavit of service by mail.

     SECTION 2. This act shall take effect upon passage.     

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LC01204

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