T H E   W O R T H L E S S   C H E C K   L A W

CODE OF ALABAMA (1975)

§13A-9-13.1 -- Negotiating Worthless Negotiable Instrument - Generally

(a) A person commits the crime of negotiating a worthless negotiable instrument if he negotiates or delivers a negotiable instrument for a thing of value and with the intent, knowledge or expectation that it will not be honored by the drawee.

(b) For the purposes of this section, it is prima facie evidence that the maker or drawer intended, knew or expected that the instrument would not be honored if:

(1) The maker or drawer had no such account with the drawee at the time the negotiation instrument was negotiated or delivered, as determined according to §7-3-503(2); or

(2) Payment was refused by the drawee for lack of funds, upon presentation within 30 days after delivery, and the maker or drawer shall not have paid the holder thereof the amount due within 10 days after receiving written notice from the holder of the instrument that payment was refused upon such instrument, as provided in §13A-9-13.2; or

(3) Notice that payment was refused is mailed by certified or registered mail and is returned undelivered to the sender, when such notice is mailed within a reasonable time after dishonor to the address printed on the instrument or given by the maker or drawer at the time of issuance of the instrument.

(c) Negotiating a worthless negotiable instrument is a Class A misdemeanor.

(d) The definition of "negotiable instrument" in §7-3-104 of the Code of Alabama applies to this section and §13A-9-13.2 and §13A-9-13.3.

(e) The definition of "negotiation" in §7-3-202 of the Code of Alabama applies to this section and §13A-9-13.2 and §13A-9-13.3.

(f) The definition of "delivery" in §7-1-201(14) of the Code of Alabama applies to this section and §13A-9-13.2 and §13A-9-13.3 (Acts 1980, No. 80-200, p. 279, §1).

13A-9-13.2 -- Same - Notice of refusal of payment upon instrument

For purposes of §13A-9-13.1:

(1) Notice mailed by certified or registered mail, evidenced by return receipt, to the address printed on the instrument or given at the time of issuance shall be deemed sufficient and equivalent to notice having been received by the person making, drawing, uttering or delivering said instrument.

(2) The form of notice shall be substantially as follows:

"This statutory notice is provided pursuant to §13A-9-13.2 of the Alabama Code. You are hereby notified that a check or instrument numbered ......, apparently issued by you on ......(date), drawn upon ......(name of bank), and payable to ......, has been dishonored. Pursuant to Alabama law, you have 10 days from receipt of this notice to tender payment of the full amount of such check or instrument plus a service charge of not more than $30.00, the total amount due being $....... Unless this amount is paid in full within the specified time above, the holder of such check or instrument may assume that you delivered the instrument with intent to defraud and may turn over the dishonored instrument and all other available information relating to this incident to the proper authorities for criminal prosecution."

(3) Any party holding a worthless negotiable instrument and giving notice in substantially similar form to that provided in subdivision (2) of this section shall be immune from civil or criminal liability for the giving of such notice and for proceeding under the forms of such notice (Acts 1980, No. 80-200, P. 279, §2).

§13A-9-13.3 -- Same - Prima facie evidence of identity

(a) In any prosecution or action under the provisions of §13A-9-13.1, a negotiable instrument for which the information required in subsections (b) and (c) of this section is available at the time of issuance shall constitute prima facie evidence of the identity of the party issuing the negotiable instrument and that such person was a party authorized to draw upon the named account.

(b) To establish this prima facie evidence, the following information regarding the identity of the party presenting the negotiable instrument shall be requested by the party receiving such instrument: the presenter's name, residence address, and home phone number. Such information may be provided by either of two methods:

(1) It may be recorded upon the negotiable instrument itself; or

(2) The number of a check-cashing identification card issued by the receiving party may be recorded on the negotiable instrument. Such check-cashing identification card shall be issued only after the information required in this subsection has been placed on file by the receiving party.

(c) In addition to the information required in subsection (b) of this section, the party receiving a negotiable instrument shall witness the signature or endorsement of the party presenting such negotiable instrument and, as evidence of such, the receiving party shall initial the negotiable instrument.

W H E N   T H E   C H E C K W R I T E R   D O E S N ' T   R E S P O N D

After you send the notice of dishonor letter (click here to get a printable letter in Adobe Acrobat .pdf file format) by certified or registered mail as required by law, and the check writer does not make restitution within 10 days, you may request the services of the Worthless Check Unit. Present the original check and the certified or registered mail receipt to the Worthless Check Unit of the District Attorney's Office.

T H E   W O R T H L E S S   C H E C K   U N I T

To request the services of the Worthless Check Unit, you must bring the original check and the return receipt for the certified or registered letter to the Worthless Check Unit at the Lee County Justice Center. Your complaint will be evaluated by the Unit and, if appropriate under the facts and circumstances, you will be requested to sign an affidavit charging the writer with issuing a worthless negotiable instrument (check).

The Worthless Check Unit will then contact the defendant giving notice that a complaint has been filed against him/her. The defendant will then be allowed 10 days to come in to the Worthless Check Unit and seek deferred prosecution. If the defendant is granted deferred prosecution, he/she will enter into a written restitution agreement with our office. We will not accept any partial payment of restitution. If the defendant complies with this agreement, no court appearance or further action will be required by you. Restitution will be forwarded on a monthly basis to the victim/merchant. The restitution may include up to a $30.00 service charge. (PLEASE NOTE: This amount is set by law and may not exceed $30.00)

Should the defendant fail to respond to the notice, a warrant will be signed on your complaint and forwarded to the Sheriff for service. It would then be necessary for you to appear in Court at the appropriate time for prosecution of the case. Additionally, should a defendant fail to comply with a restitution agreement, a warrant will be signed on your complaint and the defendant will be arrested and prosecuted.

Complaint Withdrawal

If, after filing a complaint with the Worthless Check Unit, the victim/merchant wishes to withdraw the complaint for any reason, then the victim/merchant must pay a $30.00 service charge. This fee is required by law and cannot be waived.

S U G G E S T I O N S   F O R   A C C E P T I N G   C H E C K S

It is vital that you stress to your employees the importance of being thorough when accepting a check. If your establishment has set a policy for all customers, then no one should have any reason to feel they are being treated unfairly. It is a good idea to have a "checklist" where a cashier can see it easily. It should include the following:

(1) DO NOT accept checks previously signed. Have them signed in your presence and compare the signature with their driver license or other identification.

(2) Require a permanent street address (not a P.O. Box) be written or printed on the check and affirmed by the writer. If possible, get a place of employment and a telephone number.

(3) Record on the check the type of identification used as well as the clerk's initials that received the check. A physical description of the writer will be needed if a warrant is later issued. This should include date of birth, race, sex, etc.

(4) After you have the license/identification in your hand, quickly ask yourself the following questions: (a) Is the person in the photo and in front of you the same person?; (b) Are the addresses on the check and license/identification the same?; and (c) When does the license expire? Licenses are legally worthless for identification as soon as they expire.

(5) The consecutive numbers in the upper right hand corner begin with 101 and you should be especially careful when taking low numbered checks.

(6) The numerical amount should agree with the written amount.

(7) Personal checks must be made payable to the name of the firm or company. The worthless check laws do not cover two-party checks.

C H E C K L I S T   F O R   W O R T H L E S S   CH E C K   U N I T
S E R V I C E S

USE THIS CHECKLIST TO SAVE YOURSELF TIME, WORK, AND UNNECESSARY TRAVEL

1. The check transaction must have taken place in Lee County, Alabama.

2. All checks must be dated less than one (1) year prior to obtaining a warrant. (We request that you file a complaint within 60 days of the check date.)

3. All worthless checks must be marked or stamped:

• a) Insufficient Funds
  b) Account Closed
  c) No Account

• 4. The check writer must be 18 years of age on or before the check date

5. No checks will be accepted that are marked or stamped:

• a) Stop Payment (or equivalent wording)
  b) Uncollected Funds
  c) Refer to Maker

• 6. No checks will be accepted that are)

• a) Hold checks
  b) postdated checks
  c) two-party checks

• 7. No complaints will be accepted nor warrants issued involving checks upon which you have accepted partial payment.

8. The statutory 10 days notice letter must be mailed by registered or certified mail to the address on the check or the address given by the maker at the time of issuance of the check.

9. If the certified/registered letter is returned to you, no waiting period is required.

10. The statutory notice letter (certified/registered letter) must be addressed to the person who signed the check, and to the full and correct address shown on the check or given by the writer at the time of issuance of the check.

11. You must furnish the following to file a complaint:

• a) Original check (no copies)
  b) Certified/registered mail receipt
  c) Return receipt request card (green signature ca rd)

• 12. You should also provide copies of any letters, invoices, or correspondence pertaining to the worthless check.

13. If the address shown on the face of the check is a post office box number, you must secure a residential address when you accept the check.

14. Once a complaint is filed, it cannot be withdrawn unless approved by the District Attorney or an Assistant District Attorney. Alabama law requires that a $30.00 service charge be paid by a victim/merchant withdrawing a complaint.

15. Once you sign a complaint, you must not accept restitution (partial or full) directly from the defendant. Should you accept restitution directly, the complaint must be withdrawn and the $30.00 service charge paid.

16. All status inquiries must be made in writing. NO INFORMATION WILL BE GIVEN OVER THE TELEPHONE. Please wait 6-8 weeks before inquiring.

W H A T   H A P P E N S   I F   D E F E R R E D   P R O S E C U T I O N
I S   N O T   S U C C E S S F U L ?

I. A warrant will be signed on your complaint and forwarded to the Sheriff for service:

• 1. When a defendant fails to respond to the Worthless Check Unit within 10 days; or
• 2. When a defendant fails to comply with a restitution agreement.

• II. After the defendant is arrested and bonded or placed in jail:

• 1. An Assistant District Attorney is assigned to prosecute the defendant.
• 2. A misdemeanor file is prepared by the Worthless Check Unit for use by the Assistant District Attorney.
• 3. A fine, costs, restitution and/or jail time may be ordered by the Court if the defendant is convicted or enters a plea of guilty.

• III. Our Worthless Check Unit will:

• 1. Assist the Assistant District Attorney with relevant information, including prior record and prior appearances in the unit.
• 2. Arrange for subpoenas for necessary witnesses
• 3. Answer or secure answers for questions the victim/merchant may have during the Court process.

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