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57A-3-421Collection costs and expenses--Liability of issuer of dishonored check.

If a merchant or place of business conspicuously posts a notice on its premises or if a merchant or place of business regularly extends credit and prints a notice on its customer statements of such size and location as to be conspicuous, stating that a fee will be assessed against returned checks, any person who issues a check or other draft to the merchant or place of business which is not honored for any of the following reasons upon presentment is liable for all reasonable costs and expenses of collection:

(1)    The drawer's account is closed;

(2)    The drawer's account does not have sufficient funds; or

(3)    The drawer does not have sufficient credit with the drawee.

The costs and expenses provided for in this section are reasonable if they do not exceed forty dollars plus any applicable sales tax.

Source: SL 1983, ch 368, § 1; SL 1986, ch 171, § 2; SL 1991, ch 396; SDCL § 57A-3-420; SL 2001, ch 260, § 1; SL 2007, ch 284, § 1.


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