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This entry was published on 2014-09-22
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SECTION 396-AA
Simulated check
General Business (GBS) CHAPTER 20, ARTICLE 26
* § 396-aa. Simulated check. 1. As used in this section, "simulated
check" means any document which is not currency or a check, draft, note,
bond, or other negotiable instrument but which, because of its
appearance, has the tendency to mislead or deceive any person viewing
such document into believing that it, in fact, represents currency or a
negotiable instrument which can be deposited in a bank or used for
third-party payments. "Simulated check" does not include a
non-negotiable check, draft, note or other instrument which is used for
soliciting orders for the purchase of checks, drafts, notes, bonds or
other instruments and which is clearly marked as a sample, specimen or
non-negotiable.

2. No person, firm or corporation shall produce, advertise, offer for
sale, sell, distribute or otherwise transfer for use in this state any
simulated check unless such document bears the phrase "THIS IS NOT A
CHECK" diagonally printed in clear and conspicuous type on the front of
such document.

3. Whenever there shall be a violation of this section, an application
may be made by the attorney general in the name of the people of the
state of New York to a court or justice having jurisdiction by a special
proceeding to issue an injunction, and upon notice to the respondent of
not less than five days, to enjoin and restrain the continuance of such
violations; and if it shall appear to the satisfaction of the court or
justice that the respondent has, in fact, violated this section, an
injunction may be issued by such court or justice, enjoining and
restraining any further violation, without requiring proof that any
person has, in fact, been injured or damaged thereby. Whenever the court
shall determine that a violation of this section has occurred, the court
may impose a civil penalty of not more than one hundred dollars for each
violation. In connection with any such application, the attorney general
is authorized to take proof and make a determination of the relevant
facts and to issue subpoenas in accordance with the civil practice law
and rules.

* NB There are 2 § 396-aa's