No liability in certain circumstances.

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21-57-3. No liability in certain circumstances.

The maker, drawer, or issuer is not liable for the damages and costs specified in §21-57-1 if:

(1)The account contained sufficient funds or credit to cover the check, draft, or order at the time the check, draft, or order was issued, plus all other checks, drafts, and orders on the account then outstanding and unpaid; or

(2)The check, draft, or order was not paid because a paycheck, deposited in the account in an amount sufficient to cover the check, draft, or order, was not paid upon presentation; or

(3)Funds sufficient to cover the check, draft, or order were garnished, attached, or setoff and the maker, drawer, or issuer had no notice of such garnishment, attachment, or setoff at the time the check, draft, or order was issued; or

(4)The maker of the check, draft, or order was not competent or of full age to enter into a legal contractual obligation at the time the check, draft, or order was issued; or

(5)The making of the check, draft, or order was induced by fraud or duress; or

(6)The transaction which gave rise to the obligation for which the check, draft, or order was given lacked consideration or was illegal.

Source: SL 1999, ch 112, §3.


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