What actions and with what agency can a business in our area pursue a stopped payment check ?

Full question:

What actions and with what agency can a business in our area pursue a stopped payment check ?

• Category: Banking laws
• Date: 04/07/2025
• State: Mississippi

Answer:

If you receive a check for merchandise or service you provide and the bank returns the check to you unpaid because it received a stop payment order, you may be able to file a complaint against the check writer for theft under certain circumstances.

The following are MS statutes:

§ 97-19-55. Bad checks and insufficient funds.

It shall be unlawful for any person with fraudulent intent:

(a) To make, draw, issue, utter or deliver any check, draft or order for the payment of money drawn on any bank, corporation, firm or person, knowing at the time of making, drawing, issuing, uttering or delivering said check, draft or order that the maker or drawer has not sufficient funds in or on deposit with such bank, corporation, firm or person for the payment of such check, draft or order in full, and all other checks, drafts or orders upon such funds then outstanding;

(b) To close an account without leaving sufficient funds to cover all outstanding checks written on such account.

§ 97-19-57. Bad checks; presumption of fraudulent intent; notice that check has not been paid; notice returned undelivered as evidence of intent to defraud; transactions involving motor vehicles.

(1) As against the maker or drawer thereof, the making, drawing, issuing, uttering or delivering of a check, draft or order, payment of which is refused by the drawee, shall be prima facie evidence and create a presumption of intent to defraud and of knowledge of insufficient funds in, or on deposit with, such bank, corporation, firm or person, provided such maker or drawer shall not have paid the holder thereof the amount due thereon, together with a service charge of Forty Dollars ($40.00), within fifteen (15) days after receiving notice that such check, draft or order has not been paid by the drawee.

(2) For purposes of Section 11-7-12, the form of the notice provided for in subsection (1) of this section shall be sent by regular mail and shall be substantially as follows: "This statutory notice is provided pursuant to Section 97-19-57, Mississippi Code of 1972. You are hereby notified that a check, draft or order numbered ________, apparently issued by you on ________ (date), drawn upon ________ (name of bank), and payable to ________, has been dishonored. Pursuant to Mississippi law, you have fifteen (15) days from receipt of this notice to tender payment of the full amount of such check, draft or order, plus a service charge of Forty Dollars ($40.00), the total amount due being $________. Failure to pay this amount in full within the time specified above shall be prima facie evidence of and create a presumption of both the intent to defraud and the knowledge of insufficient funds in, or on deposit with, such bank in violation of Section 97-19-55."

(3) For purposes of Section 97-19-67, the form of the notice provided for in subsection (1) of this section shall be sent by regular mail, supported by an affidavit of service by mailing, and shall be substantially as follows: "This statutory notice is provided pursuant to Section 97-19-57, Mississippi Code of 1972. You are hereby notified that a check, draft or order numbered ________, apparently issued by you on ________ (date), drawn upon ________ (name of bank), and payable to ________, has been dishonored. Pursuant to Mississippi law, you have fifteen (15) days from receipt of this notice to tender payment of the full amount of such check, draft or order, plus a service charge of Forty Dollars ($40.00), the total amount due being $________. Unless this amount is paid in full within the time specified above, the holder 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."

(4) If any notice is returned undelivered to the sender after such notice was mailed to the address printed on the check, draft or order, or to the address given by the accused at the time of issuance of the instrument, such return shall be prima facie evidence of the maker's or drawer's intent to defraud.

(5) Affidavit of service by mail shall be adequate if made in substantially the following form:

"STATE OF ________

 

 

 

COUNTY OF ________

 

 

 

____________, being first duly sworn on oath, deposes and states that he/she is at least eighteen (18) years of age and that on (date) ________, 2________, he/she served the attached Notice of Dishonor by placing a true and correct copy thereof securely enclosed in an envelope addressed as follows:

 

 

 

______________________________

 

 

 

______________________________

 

 

 

______________________________

 

 

 

and deposited the same, postage prepaid, in the United States mail at ____________, ____________.

 

 

_______________________________________________________________________


 

 

(signature)

 

 

 

Subscribed to and sworn before me, this the ________ day of ________, 2________.

 

 

_______________________________________________________________________


 

 

(Notary Public)

 

 

 

My commission expires:

 

 

 

(SEAL) "

 

 

 

(6) Without in any way limiting the provisions of this section, this section shall apply to a draft for the payment of money given for a motor vehicle even if such payment is conditioned upon delivery of documents necessary for transfer of a valid title to the purchaser.

 

 

 

 

Sources: Codes, 1942, § 2153-02; Laws, 1972, ch. 476, § 2; Laws, 1983, ch. 523, § 2; Laws, 1992, ch. 513, § 1; Laws, 1999, ch. 436, § 1; Laws, 2000, ch. 364, § 2; Laws, 2001, ch. 328, § 1; Laws, 2002, ch. 312, § 1; Laws, 2004, ch. 374, § 1, eff from and after July 1, 2004.

 

§ 97-19-61. Bad checks; when notice need not be given.

Such notice as is provided for in Section 97-19-57 is dispensed with: (a) in the event the situs of the drawee is not in the state of Mississippi; (b) if the drawer is not a resident of the state of Mississippi or has left the state of Mississippi at the time such check, draft or order is dishonored; or (c) if the drawer of such check, draft or order did not have an account with the drawee of such check, draft or order at the time the same was issued or dishonored, or payment of the check is denied because the account was closed at the time the check, draft or order was issued or dishonored.