(A) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CHECK. Check draft, order of withdrawal or similar negotiable or non-negotiable instrument.
CREDIT. An arrangement or understanding with the drawee for the payment of a check.
DISHONORED CHECK.
(a) A check which, at a time of issuance, the issuer intends shall not be paid.
(b) Any of the following shall constitute evidence that the issuer did not intend the check to be paid:
1. Proof that, at the time of issuance, the issuer did not have an account with the drawee;
2. Proof that, at the time of issuance, the issuer did not have sufficient funds or credit with the drawee and that the issuer failed to pay the check within five business days after mailing of notice of non-payment or dishonor as provided in M.S. § 609.535, as it may be amended from time to time; or
3. Proof that, when presentment was made within a reasonable time, the issuer did not have sufficient funds or credit with the drawee and that the issuer failed to pay the check within five business days after mailing of notice of non-payment or dishonor as provided in MS. § 609.535, as it may be amended from time to time.
(c) DISHONORED CHECK does not include any post-dated check or a check given for a past consideration, except a payroll check or a check issued to a fund for employee benefits.
(B) This section applies to all dishonored checks issued within the city.
(C) Prior to referring any dishonored check to the City Prosecutor, for prosecution, the city shall have the discretion to send the issuer a demand letter requesting payment of the face value of the dishonored check plus a service charge to the victim of the dishonored check. In addition, to cover the costs of sending such a demand letter and collecting payment, the city may require a service charge to the city. Upon failure of the issuer within a reasonable time to pay the face value of the dishonored check plus the aforementioned service charges, the city may, in its discretion, refer the dishonored check to the City Prosecutor for prosecution.
(Ord. 94-5, passed 10-11-1994)
Cross-reference:
Fee schedule, see § 34.01