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.
  • (2) A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in Subsection (1) or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder.
  • (3) A putative holder may overcome prima facie evidence under Subsection (1) by establishing by a preponderance of the evidence that a check, draft, or similar instrument was:
    • (a) issued as an unaccepted offer in settlement of an unliquidated amount;
    • (b) issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected;
    • (c) issued to a party affiliated with the issuer;
    • (d) paid, satisfied, or discharged;
    • (e) issued in error;
    • (f) issued without consideration;
    • (g) issued but there was a failure of consideration;
    • (h) voided within a reasonable time after issuance for a valid business reason set forth in a contemporaneous record; or
    • (i) 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.




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