1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 26: Miscellaneous

Section 396-AA Simulated check

General Business (GBS)

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