(A) Surcharge for dishonored check, draft, order or like instrument.
(1) Application. This division applies to any person who tenders a check, draft, order or like instrument to any department of the city.
(2) Surcharge. If a check, draft, order or like instrument tendered to the City of Bedford is dishonored or returned unpaid for any reason, the city may charge and collect from the maker or drawer, or the person for whose benefit the instrument was given, an amount not to exceed $20, plus an amount equal to the actual charge by the depository institution for each returned or dishonored instrument. The charge shall not be considered an interest charge, a finance charge, a time-price differential, or any charge of a similar nature.
(3) Notice—collection by city—referral of dishonored checks to prosecuting attorney. When a surcharge is imposed under division (2), the city shall notify the maker or drawer, or the person for whose benefit the instrument was given, to inform them that the instrument was dishonored or returned unpaid and that the person has ten days after the date the notice is mailed to pay the total amount due, including the surcharge, either in cash or by certified check or money order. If the person fails to make payment within the ten-day period, the city shall, pursuant to I.C. § 36-1-8-13, refer the matter to the prosecuting attorney not later than 90 days from the date the city received the dishonored check.
(B) Write-off policy for bad debts due to dishonored check, draft, order or like instrument.
(1) General. This policy provides authorizations and guidelines for the write-off of uncollectible bad debts due to dishonored check, draft, order or like instrument. It identifies the steps to be taken to collect payment of amount owed, establishes conditions under when a debt may be written-off, and defines authorization for write-offs.
(2) Collection procedures.
(a) Collection procedures are initiated by the department for which the dishonored check, draft, order or like instrument was received. The procedures listed under division (A) shall be executed.
(b) Once all of the above have been exhausted without successful collection, the bad debt will be deemed uncollectible and submitted to the Clerk-Treasurer's Office to be written-off as bad debt expense.
(3) Write-off procedure.
(a) Some situations which may result in the recommendation to write-off uncollectible receivables include:
1. All collection methods are deemed to be exhausted;
2. Cost to the city to collect exceeds the value of the debt; and
3. Information that prosecutors office requires is unobtainable; driver's license number, social security number, birth date.
(b) Once it has been determined that all collection methods have been exhausted, the recommendation to write-off the bad debt will be forwarded with all documentation to the Clerk-Treasurer's Office. The Clerk-Treasurer will ensure that a journal entry is done and the accounts receivable is adjusted to reflect the write-off. If new developments arise suggesting that there is a possibility for collection, the collection process will be resumed.
(Ord. 53-2005, passed 11-8-05; Am. Ord. 54-2005, passed 11-8-05)