1. (1) A record of a putative holder showing an unpaid debt or undischarged obligation is prima facie evidence of the debt or obligation.
2. (2) A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in subsection (1) of this section or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder.

3. (3) A putative holder may overcome prima facie evidence under subsection (1) of this section by establishing by a preponderance of the evidence that a check, draft, or similar instrument was:

   1. (a) Issued as an unaccepted offer in settlement of an unliquidated amount;
   2. (b) Issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected;
   3. (c) Issued to a party affiliated with the issuer;
   4. (d) Paid, satisfied, or discharged;
   5. (e) Issued in error;
   6. (f) Issued without consideration;
   7. (g) Issued but there was a failure of consideration;
   8. (h) Voided not later than ninety days after issuance for a valid business reason set forth in a contemporaneous record; or
   9. (i) Issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance.
4. (4) In asserting a defense under this section, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner or of custom and practice.

Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 446, § 1, effective July 1, 2020.