Subject to section 8 of this chapter, a person found liable under other applicable law is liable under this chapter to the holder of a check if the person executed and delivered the check to another person drawn on or payable at a financial institution and the person does either of the following:

1. (1) Without valid legal cause stops payment on the check.

2. (2) Allows the check to be dishonored by a financial institution because of any of the following:

   1. (A) Lack of funds.
   2. (B) Failure to have an account.
   3. (C) Lack of an authorized signature of the drawer or a necessary endorser.

As added by P.L.42-1993, SEC.18.