A. Failure To Clear: If a check tendered in payment of any account fails to clear for insufficient funds and is returned, the account shall be considered unpaid, and any receipts issued therefor shall be void, and the indebtedness shall be restored to the account.
B. Charge For Dishonored Checks: Any person who passes a check on insufficient funds to the district shall be liable to the district for the amount of the check and a service charge to the district in the sum of twenty five dollars ($25.00) for the first check passed on insufficient funds and in the sum of thirty five dollars ($35.00) for each subsequent check passed on insufficient funds within one year of the previous check passed on insufficient funds. Any person who passes a check on insufficient funds shall be liable to the district for damages equal to treble the amount of the check if the district makes written demand for the payment that is mailed by certified mail to the person who had passed the check on insufficient funds and the written demand informs the person of: 1) the provisions of California Civil Code section 1719; 2) the amount of the check; and 3) the amount of the service charge payable to the district. The person shall then have thirty (30) days from the date the written demand was mailed to pay the amount of the check, the amount of the service charge payable to the district, and the costs to mail the written demand for payment. If the person fails to pay in full the amount of the check, the service charge payable to the district and the costs to mail the written demand within thirty (30) days from the date the written demand was mailed, then the person shall be liable instead for the amount of the check, minus any partial payments made toward the amount of the check or the service charge, and damages equal to treble that amount, which shall not be less than one hundred dollars ($100.00) nor more than one thousand five hundred dollars ($1,500.00). When a person becomes liable for treble damages for a check that is the subject of a written demand, that person shall no longer be liable for any service charge for that check and any costs to mail the written demand. (Ord. 09-230, 1-8-2009)