In financial transactions, the exchange of reliable assurances is paramount for trust and legality. The "Notice of Dishonor" plays a critical role in this milieu, particularly when a check fails to clear due to insufficient funds or any reason a bank may provide. This document serves as a formal notification from the payee to the drawer, indicating a check's failure to process, effectively bridging the gap between misunderstanding and action. By employing a sample letter format, individuals and businesses can clearly and effectively communicate the dire state of a dishonored check. The letter typically includes essential details such as the check number, date of issuance, involved financial institution, the payable amount, and the specific reason for dishonor. Importantly, this communication is not merely informational but also serves a legal purpose, adhering to MRSA Title 17A, Sec. 708, which outlines the obligatory steps following a notice of dishonor. This includes a stipulated timeframe—often ten days—within which the issuer must rectify the situation, failing which, legal proceedings could be initiated. The precise nature of this notice underscores the importance of understanding and employing it correctly to ensure financial integrity and legal compliance.
| Question | Answer |
|---|---|
| Form Name | Notice Dishonor Sample Form |
| Form Length | 1 pages |
| Fillable? | Yes |
| Fillable fields | 11 |
| Avg. time to fill out | 2 min 27 sec |
| Other names | pursuant, 17A, DISHONOR, payable |
“NOTICE OF DISHONOR”
SAMPLE LETTER
Your Name
Your Street Address
City, State and ZIP code
Date:
John Doe
Street Address
City, State and ZIP code
Dear Sir/Madam:
This is to advise you that check # , issued by you and dated , drawn on (name of bank) and made payable to (your name or business name) in the amount of $ has been dishonored for lack of funds (or whatever reason the bank provides).
This letter is notice of dishonor pursuant to MRSA Title 17A , Sec. 708. If payment is not received within ten (10) days of receipt of this notice, appropriate criminal proceedings will be sought.
Sincerely,
Your signature.