Chapter 3.40
DISHONORED CHECKS

Sections:

3.40.010    Check-handling fee authorized.

3.40.020    Effect of dishonored check or draft.

3.40.030    Procedure upon dishonor of check or draft.

3.40.040    Repeated dishonor of checks or drafts.

3.40.010 Check-handling fee authorized.

Whenever a check or draft presented to the town is dishonored by nonacceptance or nonpayment by the drawee bank or institution, the drawer or maker will be charged a check-handling fee of $30.00, plus any charges assessed to the town by the town’s financial institution for its handling of the check or draft. The town clerk, or his/her designee, is hereby authorized and directed to assess said check-handling fees in addition to, and as a part of, the payment or obligation due or made to the town for which the dishonored check or draft was issued. [Ord. 559 § 2(A), 2017; Ord. 477 § 1, 2011.]

3.40.020 Effect of dishonored check or draft.

Any license, application, obligation or other service paid for with such check or draft shall be invalid; any obligation owing to the town and paid with such dishonored check or draft shall be considered still outstanding; and any penalties, interest or fees specified in the town’s ordinances, resolutions or other lawful policies will continue to accrue, until the town receives good funds for the amount of the check or draft, plus the check-handling fees described above. [Ord. 477 § 2, 2011.]

3.40.030 Procedure upon dishonor of check or draft.

The town clerk is authorized to inform the maker or drawer, by letter or other reasonable means, of the returned check or draft and the consequences of the dishonor. [Ord. 559 § 2(A), 2017; Ord. 477 § 3, 2011.]

3.40.040 Repeated dishonor of checks or drafts.

The town clerk is authorized to refuse checks as a form of payment from a maker or drawer if two checks have been returned for insufficient funds or dishonored for any other reason. [Ord. 559 § 2(A), 2017; Ord. 477 § 4, 2011.]