Key facts
| Measure | Value | Year |
|---|---|---|
| civil damages rule[1] | The holder of a worthless check may recover both punitive and compensatory damages, plus a reasonable attorney fee, in an amount set by the court or jury, under Ala. Code Section 6-5-285. | 2026 |
| misdemeanor penalty[2] | Negotiating a worthless negotiable instrument is a Class A misdemeanor under Alabama law; the section sets no dollar-amount tiers. | 2026 |
| notice period days[3] | 10 | 2026 |
| statute citation[2] | Ala. Code Section 13A-9-13.1 | 2026 |
| statute of limitations years[1] | 1 | 2026 |
Lending rules in Alabama: Alabama lending laws.
Sources
- Alabama Legislature. Code of Alabama Section 6-5-285, Holder of Worthless Check, Draft, or Order.
- Alabama Legislature. Code of Alabama Section 13A-9-13.1, Negotiating Worthless Negotiable Instrument - Generally.
- Alabama Legislature. Code of Alabama Section 13A-9-13.2, Notice of Refusal of Payment Upon Instrument.