Rhode Island Dishonored Check Law

Debts and Credit – Bad Checks – Rhode Island

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.
Civil Provisions

TITLE 6 Commercial Law; General Regulatory Provisions
CHAPTER 42 Checks and Other Instruments; Dishonor
§ 6-42-1 Notice of dishonor.
When a check, draft, or other instrument has been dishonored by nonacceptance or nonpayment by any bank or other financial institution and has not been paid within ten (10) days, the holder to whom the check, draft, or other instrument was issued may send a notice of dishonor to the maker or drawer as provided in § 6-42-2.

TITLE 6 Commercial Law; General Regulatory Provisions
CHAPTER 42 Checks and Other Instruments; Dishonor
§ 6-42-2 Term of notes – Form of notice of dishonor.

(a) A notice of dishonor sent by a holder to a maker or drawer pursuant to § 6-42-1 shall substantially comply with the following form:

… [ see, USLF form RI-401N ] …

(b) The notice provided for in subsection (a) shall be sent certified mail, return receipt requested.

TITLE 6 Commercial Law; General Regulatory Provisions
CHAPTER 42 Checks and Other Instruments; Dishonor
§ 6-42-3 Cause of action – Damages.
(a) If a check, draft, or other instrument has not been paid within thirty (30) days after the holder has sent a notice of dishonor to the maker or drawer of a check, draft, or other instrument that has been dishonored, pursuant to §§ 6-42-1 and 6-42-2, the holder may seek the damages provided under this section in the district court and may at the holder’s election be in accordance with the procedure for small claims set forth in chapter 16 of title 10.

(b) The maker or drawer of a dishonored check or other instrument who fails to pay the amount demanded within thirty (30) days of the mailing of the notice of dishonor shall be liable to the holder for:

(1) The amount of the check or other instrument;

(2) A collection fee of twenty-five dollars ($25.00);

(3) An amount equal to three (3) times the amount of the check or instrument, but in no case less than two hundred dollars ($200) and in no case more than one thousand dollars ($1,000).

TITLE 6 Commercial Law; General Regulatory Provisions
CHAPTER 42 Checks and Other Instruments; Dishonor
§ 6-42-4 Defenses to action.
It shall be a defense to any action commenced by the holder of a dishonored check or other instrument under § 6-42-3 that:

(a) The dishonor of the check or other instrument was due to a justifiable stop payment order or to the attachment of the account; or

(b) Within thirty (30) days from the mailing of the notice of dishonor, the maker or drawer has paid to the holder the full amount of the check or other instrument.


Inside Rhode Island Dishonored Check Law