§ 11-104. Additional liability of drawer. 1. Notwithstanding any\ncontrary provision of law, a drawer negotiating a check who knows or\nshould know that payment of such check will be refused by the drawee\nbank either because the drawer has no account with such bank or because\nthe drawer has insufficient funds on deposit with such bank shall be\nliable, except as provided in subdivision four of this section, to the\npayee who has presented such check for payment, not only for the face\namount of the check but also for additional, liquidated damages, where\nthe check is dishonored and the drawer fails to pay the face amount of\nsuch check within thirty days following the date of mailing by the payee\nof the second written demand for payment as provided in this section.\n 2. In the case of a drawer negotiating a check who knows or should\nknow that payment of such check will be refused by the drawee bank\nbecause the drawer has no account with such bank, such additional,\nliquidated damages shall be in an amount to be determined by the court\nin light of the circumstances, but in no event shall such amount be\ngreater than twice the face amount of the check or seven hundred fifty\ndollars, whichever is less.\n 3. In the case of a drawer negotiating a check who knows or should\nknow that payment of such check will be refused by the drawee bank\nbecause the drawer has insufficient funds on deposit with such bank,\nsuch additional, liquidated damages shall be in an amount to be\ndetermined by the court in light of the circumstances, but in no event\nshall such amount be greater than twice the face amount of the check or\nfour hundred dollars, whichever is less.\n 4. The drawer shall not be liable to the payee for the additional,\nliquidated damages provided for by this section if:\n (a) The drawer gave such check as payment for the rental of\nresidential premises; or\n (b) The drawer gave such check as payment for residential service\nsupplied by a gas, electric, steam, telephone or water corporation; or\n (c) The drawer gave such check as repayment of all, or a portion of, a\ndebt secured by collateral which the payee has repossessed.\n 5. Defenses which may be asserted against any person not having the\nrights of a holder in due course, as specified in sections 3-306 and\n3-408 of the uniform commercial code, shall be available to a defendant\nin any action or proceeding in which additional liability is claimed\nunder this section.\n 6. The additional liquidated damages provided for in this section\nshall be available only to those persons or entities which post or\notherwise give conspicuous notice to the public of the additional,\nliquidated damages which may be imposed pursuant to this section. Such\nnotice shall set forth the additional liquidated damages that may be\nimposed if a check is dishonored and the section of law authorizing\nimposition of such damages, and provide notice that criminal penalties\nalso may apply.\n 7. The first written demand for payment on the dishonored check shall\nbe in the form prescribed by subdivision eight of this section and shall\nbe sent to the drawer's last known residence address or last known place\nof business by first class mail and by certified mail return receipt\nrequested with delivery restricted to the drawer, on or after the date\nthe payee received notice that such check had been dishonored. The\nsecond written demand for payment on the dishonored check shall be in\nthe form provided in subdivision eight of this section and shall be sent\nto the drawer at the drawer's last known residence address or last known\nplace of business by first class mail on or after the fifteenth day\nfollowing the date of receipt of the first written demand for payment.\n 8. The written demands for payment required by subdivision seven of\nthis section, shall be in the following form and shall be printed in at\nleast ten point type in both the English and Spanish languages:\n
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