Alabama § 45-8-204 - Voiding of License for Invalid Payment; Reimbursement for Monetary Loss; Due Care.
Full text of Alabama Code of Alabama § 45-8-204 — Voiding of License for Invalid Payment; Reimbursement for Monetary Loss; Due Care., with citation guidance and answers to common questions.
§ 45-8-204. Voiding of License for Invalid Payment; Reimbursement for Monetary Loss; Due Care.
(a) When a check or credit card tendered by an individual, company, or other entity for payment of any motor vehicle license, vessel registration, privilege license, door to door sales license, rental lease, driver license, or manufactured home registration is found to be noncollectible at the time of deposit, the license commissioner or license inspector shall make a reasonable attempt to retrieve the motor vehicle license plate or decal and to retrieve all other licenses and decals for the enforcement of this section. In the event the motor vehicle license plate, decal, or other license cannot be retrieved, the license commissioner may void sales and use taxes, issuance fees, interest, penalties, and costs. After the motor vehicle or other license has been voided, the license commissioner shall receive credit for costs associated with the noncollectible check, credit card, or instrument issued. The appropriate state office shall mark the records pertaining to the voided license accordingly, and upon inquiry by any law enforcement agency, shall notify the agency that the party in question is operating under a voided license. All violations shall be prosecuted in accordance to law.
(b) The Calhoun County Commission shall reimburse the office of the License Commissioner of Calhoun County from the General Fund of Calhoun County up to three thousand five hundred dollars ($3,500) per year for the amount of any losses arising or caused by any errors, mistakes, or omissions of the license commissioner or his or her agents if caused without personal knowledge, including losses arising from acceptance of worthless or forged checks, drafts, money orders, credit cards, or other written or online orders for money or its equivalent.
(c) The license commissioner shall ensure that his or her employees exercise due care in performing their duties and make a diligent effort to correct any error, mistake, or omission and collect the amount subject to potential loss immediately upon becoming aware of the potential loss. This section shall not apply to any deliberate misuse or misappropriation of funds by the license commissioner or any clerk or employees of the office.
(d) This section is supplemental and shall be construed in pari materia with other laws regarding the office of the license commissioner.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 45-8-204
What does Code of Alabama § 45-8-204 cover?
Section 45-8-204 ("Voiding of License for Invalid Payment; Reimbursement for Monetary Loss; Due Care.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 45-8-204?
A common citation format is "Code of Alabama § 45-8-204" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 45-8-204 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.