Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 140-H.F.No. 368 
           An act relating to crimes; requiring notice of 
          dishonor for issuing a worthless check to cite laws 
          creating civil and criminal liability; amending 
          Minnesota Statutes 1984, sections 332.50, subdivisions 
          2 and 3; and 609.535, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 332.50, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACTS CONSTITUTING.] Whoever issues any check 
that is dishonored and is not paid within 30 days after mailing 
a notice of dishonor and a copy of that includes a citation to 
sections 332.50 and 609.535, and a description of the penalties 
contained in these sections, in compliance with subdivision 3, 
is liable to the holder for the amount of the check plus a civil 
penalty of up to $100, interest at the rate payable on judgments 
pursuant to section 549.09 on the face amount of the check from 
the date of dishonor, and reasonable attorney fees if the amount 
of the check is over $1,250.  
    A service charge not exceeding $15 may be imposed 
immediately on any dishonored check, regardless of mailing a 
notice of dishonor, if written notice of the service charge was 
conspicuously displayed on the premises when the check was 
issued.  
    This subdivision prevails over any provision of law 
limiting, prohibiting, or otherwise regulating service charges 
authorized by this subdivision, but does not nullify charges for 
dishonored checks, which do not exceed $15 or the actual cost of 
collection but in no case more than $30, or terms or conditions 
for imposing the charges which have been agreed to by the 
parties to an express contract. 
    Sec. 2.  Minnesota Statutes 1984, section 332.50, 
subdivision 3, is amended to read: 
    Subd. 3.  [NOTICE OF DISHONOR REQUIRED.] Notice of 
nonpayment or dishonor and a copy of that includes a citation to 
sections 332.50 and 609.535, and a description of the penalties 
contained in these sections, shall be sent by the payee or 
holder of the check to the drawer by certified mail, return 
receipt requested, or by regular mail, supported by an affidavit 
of service by mailing, to the address printed or written on the 
check.  The issuance of a check with an address printed or 
written on it is a representation by the drawer that the address 
is the correct address for receipt of mail concerning the 
check.  Failure of the drawer to receive a regular or certified 
mail notice sent to that address is not a defense to liability 
under this section, if the drawer has had actual notice for 30 
days that the check has been dishonored.  
    An affidavit of service by mailing shall be retained by the 
payee or holder of the check.  
    Sec. 3.  Minnesota Statutes 1984, section 609.535, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROOF OF INTENT.] Any of the following is 
evidence sufficient to sustain a finding that the person at the 
time he issued the check intended it should not be paid: 
    (1) Proof that, at the time of issuance, he did not have an 
account with the drawee;  
    (2) Proof that, at the time of issuance, he did not have 
sufficient funds or credit with the drawee and that he failed to 
pay the check within five business days after mailing of notice 
of nonpayment or dishonor as provided in this subdivision; or 
    (3) Proof that, when presentment was made within a 
reasonable time, the issuer did not have sufficient funds or 
credit with the drawee and that he failed to pay the check 
within five business days after mailing of notice of nonpayment 
or dishonor as provided in this subdivision. 
    Notice of nonpayment or dishonor and a copy of that 
includes a citation to and a description of the penalties in 
this section shall be sent by the payee or holder of the check 
to the maker or drawer by certified mail, return receipt 
requested, or by regular mail, supported by an affidavit of 
service by mailing, to the address printed on the check.  
Refusal by the maker or drawer of the check to accept certified 
mail notice or failure to claim certified or regular mail notice 
is not a defense that notice was not received.  
    The notice may state that unless the check is paid in full 
within five business days after mailing of the notice of 
nonpayment or dishonor, the payee or holder of the check will or 
may refer the matter to proper authorities for prosecution under 
this section. 
     An affidavit of service by mailing shall be retained by the 
payee or holder of the check.  
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective August 1, 1985, and apply to 
checks issued on or after that date. 
    Approved May 17, 1985