Bad check laws in New York

Key facts

• Civil damages ruleA drawer who does not pay a dishonored check within 30 days after the payee mails a second written demand owes the face amount plus liquidated damages of no more than twice the face amount or $750, whichever is less, when there was no account, or no more than twice the face amount or $400, whichever is less, when funds were insufficient, under N.Y. General Obligations Law Section 11-104. Only a payee who posts or gives conspicuous notice to the public of the additional damages, and that criminal penalties may result, can recover them. Checks for residential rent, for residential gas, electric, steam, telephone or water service, or for repayment of a debt secured by collateral the payee has repossessed are excluded.^[1]
• Misdemeanor penaltyIssuing a bad check is a class B misdemeanor under N.Y. Penal Law Section 190.05. The offense covers a drawer who utters, or a person who passes, a check knowing the drawer does not have sufficient funds to cover it, who intends or believes payment will be refused, when payment is then refused.^[2]
• Notice periodThe drawer has 30 days after the payee mails a second written demand to pay the face amount before liquidated damages are owed. The first demand goes by first class mail and by certified mail, return receipt requested, restricted delivery, on or after the date the payee received notice of dishonor; the second goes by first class mail on or after the 15th day after the first demand was received. Demands are printed in at least 10 point type in both English and Spanish, under N.Y. General Obligations Law Section 11-104 (30 days).^[1]
• Statute citationN.Y. Penal Law Section 190.05, issuing a bad check^[2]
• Treble damagesNew York allows double, not treble, liquidated damages: up to twice the face amount of the check, capped at $750 when there was no account or $400 when funds were insufficient (2 times).^[1]

Sources

1. New York State Senate (Open Legislation). New York General Obligations Law Section 11-104, Additional liability of drawer.
2. New York State Senate (Open Legislation). New York Penal Law Section 190.05, Issuing a bad check.