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H.B. 356
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PARRIS N. GLENDENING, Governor
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House Bill No. 356
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AN ACT concerning
District Court - Civil Jurisdiction - Dishonored Checks and Other
Instruments
FOR the purpose of clarifying that the District Court of Maryland has exclusive
original civil jurisdiction in an action for certain damages for a dishonored check
or other instrument regardless of the amount in controversy; making stylistic
changes; and generally relating to the exclusive original civil jurisdiction of the
District Court of Maryland.
BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 15-802
Annotated Code of Maryland
(1990 Replacement Volume and 1999 Supplement)
BY repealing and reenacting, with amendments,
Article - Courts and Judicial Proceedings
Section 4-401
Annotated Code of Maryland
(1998 Replacement Volume and 1999 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Commercial Law
15-802.
(a) When a check or other instrument has been dishonored by nonacceptance
or nonpayment and has not been paid within 10 days, the holder to whom the check
or other instrument was issued or negotiated may send a notice of dishonor to the
maker or drawer as provided under this section.
(b) If a check or other instrument has not been paid within 30 days after the
holder has sent a notice of dishonor to the maker or drawer, the maker or drawer of a
check or other instrument that has been dishonored may be liable for:
(1) The amount of the check or instrument;
(2) A collection fee of up to $25; and
(3) An amount up to 2 times the amount of the check, but not more than
$1,000.
(c) (1) (i) The holder of a check or other instrument that has been
dishonored may seek the damages provided under this section in any LOCATION OF
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- 4435 -
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