§ 2-25. Bad checks; dishonored instruments.

(a)

Used to pay city indebtedness. If any party attempts to pay any bill, charge, fee, tax, fine or other indebtedness or obligation to the city by check, money order or similar instrument, and if the instrument is dishonored, then:

(1)

The bill, charge, fee, tax, fine or other indebtedness or obligation shall be deemed to remain unpaid; and

(2)

An additional fee of thirty-five dollars ($35.00) ("dishonored instrument fee") shall be payable to the city by the maker of any such instrument that is dishonored upon presentment. Such fee shall be in addition to the total amount of such bill, charge, fee, tax, fine, or other indebtedness or obligation, and applicable late fees, for which the instrument was tendered. If the city refers such instrument to a collection agency or an attorney for collection, the fee for such dishonored instrument shall, instead of thirty-five dollars ($35.00), be the amount charged to the city by the collection agency or attorney or forty dollars ($40.00), whichever is less. The city shall not accept checks from any person, firm, or corporation, that has tendered any dishonored instruments in any twelve-month period.

(b)

Exception to this policy. This section does not apply in the case of checks, money orders or similar instruments dishonored in the course of any attempt to pay any bill, charge, fee, tax, fine or other indebtedness or obligation by a check, money order or similar instrument drawn on or issued by a financial institution which has had its funds frozen by involuntary or voluntary action, if such freezing occurs after the attempt to pay the bill, charge, fee, tax, fine or other indebtedness or obligation in such manner. In such event the party attempting such payment shall not be charged the dishonored instrument fee if the bill, charge, fee, tax, fine or other indebtedness or obligation is paid within ten (10) days from the date such party has been mailed a written notice that payment on the check, money order or similar instrument has not been honored.

(Ord. No. 95-001, §§ 1, 2, 2-7-95; Ord. No. 2001-09, § 1, 6-5-01; Ord. No. 2014-25, § 1, 8-26-14)