ORDINANCE   4  , 2004

 

AN ORDINANCE ESTABLISHING SERVICE FEES AND PROCEDURES FOR HANDLING RETURNED CHECKS

 

WHEREAS, THE TOWN OF BUNKER HILL ON OCCASION RECEIVES CHECKS RETURNED TO THEM FOR INSUFFICIENT FUNDS, AND

WHEREAS, RECEIPT OF SAID CHECKS RESULTS IN INCREASED LABOR FOR THE CLERK/TREASURERS OFFICE, AND

WHEREAS, IC 35-43-5-5 ESTABLISHES GUIDELINES FOR HANDLING RETURNED CHECKS, AND

WHEREAS, IT IS THE TOWN COUNCILS RESPONSIBILITY TO ENSURE THAT THE CLERK/TREASURER HAS THE TOOLS TO OPERATE THAT OFFICE IN AN EFFICIENT MANNER, AND

THEREFORE, BE IT ORDAINED THAT THE TOWN COUNCIL OF THE TOWN OF BUNKER HILL ESTABLISH PROCEDURES FOR THE HANDLING OF RETURNED CHECKS.

ARTICLE I.   TITLE.   This ordinance shall be known as the "Returned Check Ordinance" of Bunker Hill, Indiana.

ARTICLE II.   PROCEDURE.   Whenever a check, draft or order is returned for insufficient funds, the following procedures shall apply:

  1. Person writing said check, draft or order will be notified of the shortage in accordance with IC 26-2-7-3 and advised they have ten (10) days to pay the amount due along with a service fee of $25.00.
     
  2. Persons writing a check, draft or order with insufficient funds a second time will be required to pay future bills/service fees by cash, certified check or money order.
     
  3. Persons failing to honor said checks, drafts or orders within the allotted time frame above, or checks written on closed accounts, shall be turned over to the prosecuting attorney within ninety (90) days of receipt of the dishonored check.

ARTICLE III.   PENALTY.   In accordance with IC 35-43-5-5, a person writing a check, draft or order knowingly or intentionally issues or delivers a check, draft or order on a credit institution, knowing it will not be honored by that institution, commits check deception, a Class A misdemeanor. However, should the amount of said check be $2,500.00 or more, it becomes a Class D felony.

  1. To constitute prima facie evidence of the identity of the maker of the check, draft or order, said instrument must contain two (2) of the following items:

    (a)   Name and residence, business or mailing address.

    (b)   Motor vehicle operators license number, Social Security number, home telephone number or place of employment.


     
  2. A person does not commit a crime if:

    (a)   Clerk/Treasurers office knows the person has insufficient funds to ensure payment.

    (b)   If the check, draft or order is postdated.

    (c)   Insufficiency of funds results from an adjustment to that persons account by the credit institution without notice to that person.

ARTICLE IV.   APPROVAL.   THIS ORDINANCE WAS DULY ADVERTISED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF BUNKER HILL, MIAMI COUNTY, INDIANA AFTER A PUBLIC HEARING ON THE   13   DAY OF   July   , 2004 AND IS EFFECTIVE UPON APPROVAL.

 
ATTEST:
 
 
  Norman A. McBride      
Norman McBride, Clerk/Treasurer 		                               
 
  Leslie H. Briggs        
      Leslie H. Briggs, President

  Doris Gingerich        
      Doris Gingerich, Member

   

 
  Byron Kosanke         
      Byron Kosanke, Member

  Daryl Mosley            
      Daryl Mosley, Member

  Marilyn S. Floyd      
      Marilyn Floyd, Member