Arizona Dishonored Check Law


Debts and Credit – Bad Checks – Arizona

Note: This summary is not intended to be an all inclusive summary of the law of bad checks, but does contain basic and other provisions.

44-6851. Definitions

In this chapter, unless the context otherwise requires:

1. “Check” means a draft that is payable on demand and drawn on a financial institution, a cashier’s check or a teller’s check.
2. “Draft” means an item, other than an instrument, that is an order.
3. “Drawer” means a person who signs or is identified in a draft as a person ordering payment.
4. “Financial institution” means a bank, savings and loan association or credit union that is chartered and supervised under state or federal law.
5. “Holder” means a person, including this state, who is entitled to enforce an instrument.
6. “Maker” means a person who signs or is identified in a note as a person undertaking to pay.
7. “Order” means a written instruction to pay money that is signed by the person giving the instruction. The instruction may be addressed to any person, including this state or the person giving the instruction, or to one or more persons, including this state, jointly or in the alternative but not in succession.
8. “Payee” means a person, including this state, in whose favor an instrument is drawn or made payable.

44-6852. Dishonored checks; service fee
Notwithstanding any other law, the holder, payee or assignee of the holder or payee of a dishonored check, draft, order or note may charge and collect from the maker or drawer a service fee of not more than twenty-five dollars plus any actual charges assessed by the financial institution of the holder, payee or assignee of the holder or payee as a result of the dishonored instrument.