The business, unaware of the HIDC laws, then issues a second check to the employee. Knowingly cashing or depositing a check twice on purpose is check fraud and can lead to federal indictments. INTRODUCTION The “holde r in due course” doctrine, as implemented by Article 3 of the Uniform Commercial Code (U.C.C., or the Code), 1. governs negotiable instruments such as checks and promissory notes. Gregory E. Maggs * I. Hello there: That is basically exactly what a Holder In Due Course (HIDC) is entitled to do. Plaintiff claimed that, as a result of the assignments, he had the legal status of holder in due course of the checks. I assume what happened is that the OP put a stop payment on the check, the contractor cashed the check at the quick-pay place, the check bounced, and now the quick-pay place is threatening to sue the OP. I recommend consulting with an attorney, if it goes that far. According to plaintiff, CCS and ACCC therefore became the holders in due course of the checks they cashed, pursuant to N.J.S.A. It is conspicuous that ‘Any Kind’ society did not perceive what the disposal following that control was but, they should feel speculated that there was celebrity unfamiliar going on. Plaintiff thus acquired the check cashing companies’ holder in due course status when the checks were assigned to plaintiff. The doctrine says that You must have the correct evidence presented by the proper witnesses. THE HOLDER IN DUE COURSE DOCTRINE AS A DEFAULT RULE. If it was posted on a verification service that the check cashing company utilizes, that may be enough to eject them from their holder in due course status. State penalties for check fraud vary, but depending on the amount of the check in question, check fraud may come with a misdemeanor or felony charge, a fine, and/or jail time. They then cashed the check again with a payday loan company. ... the employee in this scenario is paid twice … Getting your proof in at trial will be difficult. There is something in the Uniform Commercial Code §3-602 called the "Holder in Due Course doctrine." I issued a check to an employee. The payday loan company subsequently sent me a letter stating that they are a Holder in Due Course under UCC 3.302, requesting payment for the amount of the check. The employee will then deposit and cash the second check and may take the first to a local currency exchange, where it would be honored and cashed. In this detail circumstance, I don’t apprehend that Any Peel Checks Cashed, Inc. should be reflected as a Holder in Due Course. The case of a Kentucky man arrested this month for using mobile banking to steal thousands of dollars from a local supermarket chain highlights … 2. Plaintiff further alleged that CCS and ACCC had assigned the checks to him. 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