Evidence of unpaid debt or undischarged obligation.

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(1) A record of a putative holder showing an unpaid debt or undischarged obligation is prima facie evidence of the debt or obligation.

  1. A putative holder may establish by a preponderance of the evidence that there is nounpaid debt or undischarged obligation for a debt or obligation described in subsection (1) of this section or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder.

  2. A putative holder may overcome prima facie evidence under subsection (1) of thissection by establishing by a preponderance of the evidence that a check, draft, or similar instrument was:

  1. Issued as an unaccepted offer in settlement of an unliquidated amount;

  2. Issued but later was replaced with another instrument because the earlier instrumentwas lost or contained an error that was corrected;

  3. Issued to a party affiliated with the issuer;

  4. Paid, satisfied, or discharged;

  5. Issued in error;

  6. Issued without consideration;

  7. Issued but there was a failure of consideration;

  8. Voided not later than ninety days after issuance for a valid business reason set forthin a contemporaneous record; or

  9. Issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance.

(4) In asserting a defense under this section, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner or of custom and practice.

Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 446, § 1, effective July 1, 2020.


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