(A) In the event a check or draft is presented to the town for payment of any outstanding balance due to the town, including, but not limited to, utility fees, permits, user fees, or ordinance violations, and such check or draft is later dishonored, the Clerk-Treasurer, or his or her designee, is authorized to contact the issuer of the unpaid or dishonored check or draft, pursuant to I.C. 26-2-7-3, and request payment of the amount due and bank fees. The town is also authorized to collect the sum of $25, which sum shall constitute a service fee on returned or dishonored checks or drafts presented to the town.
(B) All service fees collected under this section shall be deposited into the General Fund of the town.
(C) If an individual or entity has failed to remit the amount due for the dishonored check or draft, as well as the service fee, within ten days of notice, as such notice is defined by I.C. 26-2-7-3, then the town shall forward any and all relevant information to the prosecutor’s office for further action consistent with I.C. 35-43-5 et seq.
(D) If an individual or entity has presented to the town checks or drafts that were later dishonored on two occasions, then said individual or entity shall no longer be allowed to present checks or drafts to the town and all future payments to the town shall be made in cash. To resume payments after being put on a cash-only basis, the individual or entity shall come before the Town Council at a regular Council meeting to discuss the situation and request reinstatement to check writing status.
(E) If the Town Council denies the request of an individual or entity to be reinstatement to check writing status, then the individual or entity must wait six months before requesting reinstatement from the Town Council.
(Ord. 2016-8, passed 4-25-2016)