1. (1) A record of a putative holder showing an unpaid debt or undischarged obligation shall be 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)
   2. (b) Issued as an unaccepted offer in settlement of an unliquidated amount; Issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected; Issued to a party affiliated with the issuer;
   3. (c)
   4. (d) Paid, satisfied, or discharged;
   5. (e)
   6. (f)
   7. (g)
   8. (h) Voided not later than ninety (90) days after issuance for a valid business Issued in error; Issued without consideration; Issued but there was a failure of consideration;
   9. (i) reason set forth in a contemporaneous record; or 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.

Effective: July 14, 2018

History: Created 2018 Ky. Acts ch. 163, sec. 59, effective July 14, 2018.