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 9  AN ACT concerning civil actions; relating to worthless checks; amending
10    K.S.A. 1996 Supp. 60-2610 and repealing the existing section.
11
12  Be it enacted by the Legislature of the State of Kansas:
13    Section 1.  K.S.A. 1996 Supp. 60-2610 is hereby amended to read as
14  follows: 60-2610. (a) If a person gives a worthless check, as defined by
15  subsection (g), the person shall be liable to the holder of the check for
16  the amount of the check, the incurred court costs, the costs of restricted
17  mail and the service charge and the costs of collection, including but not
18  limited to reasonable attorney fees, plus an amount equal to the greater
19  of the following:
20    (1)  Damages equal to three times the amount of the check but not
21  exceeding the amount of the check by more than $500; or
22    (2)  $100.
23    The court may waive all or part of the attorney fees provided for by
24  this subsection, if the court finds that the damages and other amounts
25  awarded are sufficient to adequately compensate the holder of the check.
26  In the event the court waives all or part of the attorney fees, the court
27  shall make written findings of fact as to the specific reasons that the
28  amounts awarded are sufficient to adequately compensate the holder of
29  the check.
30    (b)  The amounts specified by subsection (a) shall be recoverable in a
31  civil action brought by or on behalf of the holder of the check only if: (1)
32  Not less than 14 days before filing the action, the holder of the check
33  made written demand on the maker or drawer for payment of the amount
34  of the check, the incurred service charge and the costs of restricted mail;
35  and (2) the maker or drawer failed to tender to the holder, prior to the
36  filing of the action, an amount not less than the amount demanded. The
37  written demand shall be sent by restricted mail, as defined by subsection
38    (g), to the person to be given notice at such person's address as it appears
39  on such check, draft or order or to the last known address of the maker
40  or drawer and shall include notice that, if the money is not paid within
41  14 days, triple damages in addition to an amount of money equal to the
42  sum of the amount of the check, the incurred court costs, service charge,
43  costs of restricted mail and the costs of collection including but not limited
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 1  to reasonable attorney fees unless the court otherwise orders, may be
 2  incurred by the maker or drawer of the check.
 3    (c)  Subsequent to the filing of an action under this section but prior
 4  to the hearing of the court, the defendant may tender to the plaintiff as
 5  satisfaction of the claim, an amount of money equal to the sum of the
 6  amount of the check, the incurred court costs, service charge, costs of
 7  restricted mail and the costs of collection, including but not limited to
 8  reasonable attorney fees. The court may waive all or part of the attorney
 9  fees provided for by this subsection, if the court finds that the damages
10  and other amounts awarded are sufficient to adequately compensate the
11  holder of the check. In the event the court waives all or part of the
12  attorney fees, the court shall make written findings of fact as to the spe-
13  cific reasons that the amounts awarded are sufficient to adequately com-
14  pensate the holder of the check.
15    (d)  If the trier of fact determines that the failure of the defendant to
16  satisfy the dishonored check was due to economic hardship, the court
17  may waive all or part of the damages provided for by this section, but the
18  court shall render judgment against defendant for not less than the
19  amount of the dishonored check, the incurred court costs, service charge,
20  costs of restricted mail and the costs of collection, including but not lim-
21  ited to reasonable attorney fees, unless otherwise provided in this sub-
22  section. The court may waive all or part of the attorney fees provided for
23  by this subsection, if the court finds that the damages and other amounts
24  awarded are sufficient to adequately compensate the holder of the check.
25  In the event the court waives all or part of the attorney fees, the court
26  shall make written findings of fact as to the specific reasons that the
27  amounts awarded are sufficient to adequately compensate the holder of
28  the check.
29    (e)  Any amount previously paid as restitution or reparations to the
30  holder of the check by its maker or drawer shall be credited against the
31  amount for which the maker or drawer is liable under subsection (a).
32    (f)  Conviction of giving a worthless check or habitually giving a worth-
33  less check, as defined by K.S.A. 21-3707 and 21-3708 and amendments
34  thereto, shall not be a prerequisite or bar to recovery pursuant to this
35  section.
36    (g)  No judgment for costs of collection shall be rendered against the
37  defendant unless accompanied by documented proof such as a receipt of
38  such costs of collection.
39    (g) (h)  As used in this section:
40    (1)  ``Giving a worthless check'' means the making, drawing, issuing
41  or delivering or causing or directing the making, drawing, issuing or de-
42  livering of any check, order or draft on any bank, credit union, savings
43  and loan association or depository for the payment of money or its equiv-
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 1  alent:
 2    (A)  With intent to defraud or in payment for a preexisting debt; and
 3    (B)  which is dishonored by the drawee because the maker or drawer
 4  had no deposits in or credits with the drawee or has not sufficient funds
 5  in, or credits with, the drawee for the payment of such check, order or
 6  draft in full upon its presentation.
 7    (2)  ``Restricted mail'' means mail which carries on its face the en-
 8  dorsements ``restricted mail'' and ``deliver to addressee only.''
 9    (3)  ``Service charge'' means $10, or subject to limitations contained
10  in this subsection, if a larger amount is posted conspicuously, the larger
11  amount. In no event shall the amount of such insufficient check service
12  charge exceed $30.
13    (4)  ``Holder'' means the original payee of the check and does not in-
14  clude any party to whom the original payee assigned or sold the check.
15    Sec. 2.  K.S.A. 1996 Supp. 60-2610 is hereby repealed.
16    Sec. 3.  This act shall take effect and be in force from and after its
17  publication in the statute book.