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Lev
Lev, Tax Preparer
Category: Finance
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Experience:  Personal Investment, Tax Preparation
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What is the statute of limitations on bad checks

Customer Question

What is the statute of limitations on bad checks? IN CALIFORNIA
Submitted: 8 years ago.
Category: Finance
Expert:  Lev replied 8 years ago.

According to the UCC section 3-104(2)(b) a check is "a draft drawn on a bank and payable on demand." - and there is no any statute of limitation on the check.

Let's not confuse the payment with the check (bad or good) with the contract according to which the payment is made. There is a statute limitation on the contract.

In CA the a statute limitation on written contracts is 4 years; on oral contracts is 2 years - http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ccp&group=00001-01000&file=335-349.4

Civil penalty in CA for writing a bad check is - in additional to the amount due - damages of triple that amount, but in no case less than $100 or more than $1, 500 -Civil Code § 1719(a)(2)

Criminal penalties for check amount less than $200 and if the first offense - up to a year in county jail.