 Utah Bad Check Law
In Utah, a person issuing a check that is dishonored because he has insufficient funds, or does not have an account, or has closed the account at the financial institution upon which the check is drawn may be liable to the holder of the check the face amount of the check plus service charge in an amount not to exceed $20.00 if the holder gives the check maker written or verbal notice of dishonor. However, if the check is honored after being redeposited, the holder may not be entitled to the service charge.
If a civil action is filed to recover the amount owed under the dishonored check, the maker of the check may be liable for the face amount of the check, interest, and all costs of collection, including all court costs and reasonable attorney's fees. Before filing a civil action, the holder must give the maker of a dishonored check a written notice of his intent to file a civil action, allowing the maker of the dishonored check 7 days from the date on which the notice was mailed to tender payment in full, plus the service charge imposed for the dishonored check. A written notice is conclusively presumed to have been given when properly deposited in the United States mails, postage prepaid, by certified or registered mail, return receipt requested, and addressed to the signer at the signer's address as it appears on the check or at the signer's last-known address. The notice must be esentially in the following form:
Date: _____________
To: _______________
You are hereby notified that the check(s) described below issued by you has (have) been returned to us unpaid:
Instrument date: ____________
Instrument number: __________
Originating institution: _________
Amount: ___________________
Reason for dishonor (marked on instrument): _______________________________________
This instrument, together with a service charge of $20 must be paid to the undersigned within seven days from the date of this notice in accordance with Section 7-15-1, Utah Code Annotated, or appropriate civil legal action may be filed against you for the amount due and owing together with interest, court costs, attorneys' fees, and actual costs of collection as provided by law.
In addition, the criminal code provides in Section 76-6-505, Utah Code Annotated, that any person who issues or passes a check for the payment of money, for the purpose of obtaining from any person, firm, partnership, or corporation, any money, Property, or other thing of value or paying for any services, wages, salary, labor, or rent, knowing it will not be paid by the drawee and payment is refused by the drawee, is guilty of issuing a bad check.
The civil action referred to in this notice does not preclude the right to prosecute under the criminal code of the state of Utah.
(Signed) ____________________________________________________
Name of Holder: ____________________________________________________
Address of Holder: ____________________________________________________
Telephone Number: ____________________________________________________
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