Utah Code

Utah Code § 7-15-1 (2026)

Definitions -- Civil liability of issuer -- Notice of action -- Collection costs -- Exemptions

✓ current as of May 2026

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As used in this chapter:

"Check" means a payment instrument on a depository institution including a:

check;

draft;

order; or

other instrument.

"Issuer" means a person who makes, draws, signs, or issues a check, whether as corporate agent or otherwise, for the purpose of:

obtaining from any person any money, merchandise, property, or other thing of value; or

paying for any service, wages, salary, or rent.

"Mailed" means the day that a notice is properly deposited in the United States mail.

An issuer of a check is liable to the holder of the check if:

the check:

is not honored upon presentment; and

is marked "refer to maker";

the account upon which the check is made or drawn:

does not exist;

has been closed; or

does not have sufficient funds or sufficient credit for payment in full of the check; or

the check is issued in partial or complete fulfillment of a valid and legally binding obligation; and

the issuer stops payment on the check with the intent to:

fraudulently defeat a possessory lien; or

otherwise defraud the holder of the check.

If an issuer of a check is liable under Subsection (2)(a), the issuer is liable for:

the check amount; and

a service charge of $20.

The holder of a check that has been dishonored may:

give written or oral notice of dishonor to the issuer of the check; and

waive all or part of the service charge imposed under Subsection (2)(b).

Notwithstanding Subsection (2)(b), a holder of a check that has been dishonored may not collect and the issuer is not liable for the service charge imposed under Subsection (2)(b) if:

the holder redeposits the check; and

that check is honored.

If the issuer does not pay the amount owed under Subsection (2)(b) within 15 calendar days from the day on which the notice required under Subsection (5) is mailed, the issuer is liable for:

the amount owed under Subsection (2)(b); and

collection costs not to exceed $35.

A holder shall provide written notice to an issuer before:

charging collection costs under Subsection (4) in addition to the amount owed under Subsection (2)(b); or

commencing an action based upon this section.

The written notice required under Subsection (5)(a) shall notify the issuer of the dishonored check that:

if the amount owed under Subsection (2)(b) is not paid within 15 calendar days from the day on which the notice is mailed, the issuer is liable for:

the amount owed under Subsection (2)(b); and

collection costs under Subsection (4); and

the holder may commence a civil action if the issuer does not pay to the holder the amount owed under Subsection (4) within 30 calendar days from the day on which the notice is mailed.

Except as provided in Section 7-23-401, if the issuer has not paid the holder the amounts owed under Subsection (4) within 30 calendar days from the day on which the notice required by Subsection (5) is mailed, the holder may offer to not commence a civil action under this section if the issuer pays the holder:

the amount owed under Subsection (2)(b);

the collection costs under Subsection (4);

an amount that:

is equal to the greater of:

$50; or

triple the check amount; and

does not exceed the check amount plus $250; and

if the holder retains an attorney to recover on the dishonored check, reasonable attorney's fees not to exceed $50.

Notwithstanding Subsection (6)(a), all amounts charged or collected under Subsection (6)(a)(iii) shall be paid to and be the property of the original payee of the check.

A person who is not the original payee may not retain any amounts charged or collected under Subsection (6)(a)(iii).

The original payee of a check may not contract for a person to retain any amounts charged or collected under Subsection (6)(a)(iii).

A holder may not commence a civil action under this section unless the issuer fails to pay the amounts owed:

under Subsection (4); and

within 30 calendar days from the day on which the notice required by Subsection (5) is mailed.

Subject to Subsections (7)(c) and (d) and except as provided in Section 7-23-401, in a civil action the issuer of the check is liable to the holder for:

the amount owed under Subsection (2)(b);

the collection costs under Subsection (4);

interest;

court costs;

reasonable attorney fees; and

damages:

equal to the greater of:

$100; or

triple the check amount; and

not to exceed the check amount plus $500.

If an issuer is held liable under Subsection (7)(b), notwithstanding Subsection (7)(b), a court may waive any amount owed under Subsections (7)(b)(iii) through (vi) upon a finding of good cause.

If a holder of a check violates this section by commencing a civil action under this section before 31 calendar days from the day on which the notice required by Subsection (5) is mailed, an issuer may not be held liable for an amount in excess of the check amount.

Notwithstanding Subsection (7)(b), all amounts charged or collected under Subsection (7)(b)(vi) shall be paid to and be the property of the original payee of the check.

A person who is not the original payee may not retain any amounts charged or collected under Subsection (7)(b)(vi).

The original payee of a check may not contract for a person to retain any amounts charged or collected under Subsection (7)(b)(vi).

This section may not be construed to prohibit the holder of the check from seeking relief under any other applicable statute or cause of action.

Notwithstanding the other provisions of this section, a holder of a check is exempt from this section if the holder is:

a depository institution; or

a person that receives a payment on behalf of a depository institution.

A holder exempt under Subsection (9)(a) may contract with an issuer for the collection of fees or charges for the dishonor of a check.

Notes of Decisions

Cited in 13 cases, 1989–2007 · leading case: Mountain States Tel. & Tel. Co. v. Payne, 782 P.2d 464 (Utah 1989).

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Mountain States Tel. & Tel. Co. v. Payne, 782 P.2d 464 (Utah 1989). · cites it 36× “Payne contends that the trial court committed reversible error in finding her liable for writing checks drawn on insufficient funds pursuant to Utah Code Ann. § 7-15-1 (1988). 1 We reverse.”

Ditty v. Checkrite, Ltd., Inc., 973 F. Supp. 1320 (D. Utah 1997). · cites it 10× “The drawer of a dishonored check may be liable for a sum greater than the face amount of the check, plus the service charge, only if a civil collection action is filed.”

Johnson v. Riddle, 305 F.3d 1107 (10th Cir. 2002). · cites it 2× “” Utah Code § 7-15-1 (1997). 1 *1111 The defendants in this suit attempted to collect a statutory shoplifting fee of $250 on a dishonored check.”

Johnson v. Riddle, 443 F.3d 723 (10th Cir. 2006). · cites it 2× “Utah Code Ann. § 7-15-1 However, if such" a claim could somehow be cast as a shoplifting charge, the allowable statutory penalty would be up to $500.”

World Peace Movement of Am. v. Newspaper Agency Corp., 879 P.2d 253 (Utah 1994). · cites it 2× “, Utah Code Ann. § 7-15-1 (3)(c) (Supp. 1993) (person issuing bad check is liable for "all costs of collection, including all court costs and reasonable attorneys' fees"); Utah Code Ann.”

Elm, Inc. v. M.T. Enter., Inc., 968 P.2d 861 (Utah Ct. App. 1998). · cites it 4× “Utah Code Ann. § 7-15-1 (2) (1995). 2 . As stated earlier, under the Contract Employee Agreement at paragraph 11(f), ELM was entitled to collect a fee if it prepared certified payroll reports, but such fee was "to be determined as needed.”

Tholen v. Sandy City, 849 P.2d 592 (Utah Ct. App. 1993). · cites it 4× “See Utah Code Ann. § 7-15-1 (3) (Supp. 1992) (“all costs of collection, including .”

Lorenzo v. Workforce Appeals Bd., 58 P.3d 873 (Utah Ct. App. 2002). · cites it 2× “(d) The division shall assess as a penalty a service charge, in addition to any other penalties that may apply, in an amount not to exceed the service charge imposed by Section 7-15-1 for dishonored instruments if: (i) any amount due the division for contributions, interest,…”

Express Recovery Servs., Inc. v. Shewell, 2007 UT App 318 (Utah Ct. App. 2007). · cites it 15× “See generally Utah Code Ann. §§ 7-15-1 to -3 (2006 & Supp.”

Johnson v. Riddle, 296 F. Supp. 2d 1283 (D. Utah 2003). · cites it 3× “§ 7-15-1 and § 78-51-31. Accordingly, these claims are dismissed with prejudice.”

Checkrite Recovery Servs. v. King, 52 P.3d 1265 (Utah 2002). · cites it 10× “1 2 The sole issue presented by this appeal is the meaning of "all costs of collection, including all court costs and reasonable attorneys' fees," which are recoverable under Utah Code Ann. § 7-15-1 (7)(b)(@ii) (2001) in a suit against the issuer of a dishonored check.”

Peterson Plumbing Supply v. Bernson, 797 P.2d 473 (Utah Ct. App. 1990). · cites it 24× “Babcock for issuing a fraudulent check under Utah Code Ann. § 7-15-1 (1982). We affirm.”

Show all 13 citing cases →

— Utah Code § 7-15-1(2) — 1 case

Ditty v. Checkrite, Ltd., Inc., 973 F. Supp. 1320 (D. Utah 1997). “The drawer of a dishonored check may be liable for a sum greater than the face amount of the check, plus the service charge, only if a civil collection action is filed.”

— Utah Code § 7-15-1(2)(b) — 1 case

Checkrite Recovery Servs. v. King, 52 P.3d 1265 (Utah 2002). “1 2 The sole issue presented by this appeal is the meaning of "all costs of collection, including all court costs and reasonable attorneys' fees," which are recoverable under Utah Code Ann. § 7-15-1 (7)(b)(@ii) (2001) in a suit against the issuer of a dishonored check.”

— Utah Code § 7-15-1(3) — 2 cases

Tholen v. Sandy City, 849 P.2d 592 (Utah Ct. App. 1993). “See Utah Code Ann. § 7-15-1 (3) (Supp. 1992) (“all costs of collection, including .”

— Utah Code § 7-15-1(4) — 1 case

— Utah Code § 7-15-1(4)(b) — 1 case

Express Recovery Servs., Inc. v. Shewell, 2007 UT App 318 (Utah Ct. App. 2007). “See generally Utah Code Ann. §§ 7-15-1 to -3 (2006 & Supp.”

— Utah Code § 7-15-1(6)(a) — 1 case

— Utah Code § 7-15-1(7)(b) — 1 case

— Utah Code § 7-15-1(7)(b)(it) — 1 case

— Utah Code § 7-15-1(7)(b)(vi) — 1 case

Express Recovery Servs., Inc. v. Shewell, 2007 UT App 318 (Utah Ct. App. 2007). “See generally Utah Code Ann. §§ 7-15-1 to -3 (2006 & Supp.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.