Key facts
- Misdemeanor penaltyIssuing a bad check is a Class C misdemeanor under Tex. Penal Code Section 32.41(f), or a Class B misdemeanor if the check was for court-ordered child support.[1]
- Prosecution notice requirementKnowledge of insufficient funds is presumed under Tex. Penal Code Section 32.41(b)(2) if the issuer fails to pay the holder in full within 10 days after receiving notice the check was refused.[1]
- Service fee maximumA holder of a dishonored payment device may charge a maximum processing fee of $30 under Tex. Bus. and Com. Code Section 3.506(b) ($30).[2]
- Statute citationTex. Penal Code Section 32.41, issuance of bad check or similar sight order[1]
Lending rules in Texas: Texas lending laws.
Sources
- Texas Legislative Council. Texas Penal Code Chapter 32, Fraud.
- Texas Legislative Council. Texas Business and Commerce Code Chapter 3, Negotiable Instruments.