(A) As used in this chapter, BAD CHECK refers to the non-payment or dishonor of a check by a bank or other financial institution upon which the check is drawn for any reason, including but not limited to the following reasons:
(1) Refer to maker;
(2) Nonsufficient funds;
(3) Signature missing or incomplete;
(4) Payment stopped;
(5) Account closed;
(6) Postdated; and/or
(7) Staledated.
(B) The maker of each bad check returned to the village by a bank or other financial institution will be assessed the following handling fee for each item returned:
(1) On the first occasion: $25.
(2) For the second occasion within one calendar year of the first occasion: $50.
(C) After any person provides the village with a second bad check that is returned within one calendar year of the first occasion, the village shall accept no more checks from such person for six months from the date the payment is made good; all payments to the village shall be made by cash or money order. If a person owing the village money is late with a payment, e.g., with a payment for utility services due on a date certain, during the six-month period, the running of the six-month period shall recommence.
(D) The village shall use reasonable efforts to notify any person who has tendered a bad check to the village at the address and phone number of the person noted on the check or in the village’s files, e.g., a utility application. However, the village’s inability or failure to make contact with such person shall not extend any time period set forth in this policy.
(E) A person who has tendered a bad check to the village shall have two business days from the date the check is returned to the village in which to pay the village the amount of the bad check, plus the village handling fee, plus any charges imposed by the village’s financial institution for handling the bad check. All payments for bad checks shall be in cash, or by money order; no checks will be accepted in payment for a bad check.
(F) When person tenders a bad check for utility services, any time periods applicable to delinquent payments and utility reconnections shall be calculated as if no payment at all had been made. If the check is not made good within two business days, utilities may be disconnected without further notice.
(G) In order to minimize the potential for bad checks, the village will accept no THIRD PARTY CHECKS (defined as a check written by a maker to a payee who then endorses the check over to the village). Nor will the village accept postdated checks.
(Prior Code, § 50C.012) (Ord. 95-024, passed 10-16-1995; Ord. 16-001, passed 1-4-2016; Ord. 16-021, passed 9-6-2016)