CODE OF VIRGINIA

CIVIL RECOVERY FOR GIVING BAD CHECK (§ 8.01-27.2)

A. Except as otherwise provided in Chapter 13 (§ 55-217 et seq.) or Chapter
13.2 (§ 55-248.2 et seq.) of Title 55, in the event a check, draft or order,
the payment of which has been refused by the drawee because of lack of funds in
or credit with such drawee, is not paid in full within thirty days after receipt
by the drawer of (i) written notice by registered, certified, or regular mail
with the sender retaining an affidavit of service of mailing or other sufficient
proof of mailing, which may be a U.S. Postal Certificate of Mailing or (ii) if
for nonpayment of rent under § 55-225 or 55-248.31, written notice in
accordance therewith, from the payee that the check, draft or order has been
returned unpaid, the payee may recover from the drawer in a civil action brought
by the filing of a warrant in debt, the lesser of $ 250 or three times the
amount of the check, draft or order. The amount recovered as authorized by this
section shall be in addition to the amounts authorized for recovery under §
8.01-27.1. No action may be initiated under this section if any action has been
initiated under § 18.2-181. The drawer shall be obligated to pay the cost of
service and the cost of mailing, as applicable.

B. If an electronic funds transfer has been rejected because of insufficient
funds or a stop-payment order has been placed in bad faith by the authorizing
party, the authorizing party and the payee shall have the same rights and
remedies as if the drawer had issued a bad check under § 8.01-27.1. For
purposes of this subsection, “electronic funds transfer” has the
same meaning as provided in 15 U.S.C. § 1693(a).

HISTORY: 1985, c. 579; 1988, c. 433; 1992, c. 501; 2002, c. 763; 2008, c. 489;
2013, c. 63.