ORDINANCE NO.   2012-09  

AN ORDINANCE ESTABLISHING A RETURNED CHECK FEE

WHEREAS, the Town regularly receives payments by check for various services and fees; and

WHEREAS, from time to time the Town receives checks on accounts with insufficient funds which expose the Town to bank charges for returned checks and other internal administrative expenses; and

WHEREAS, the Leo-Cedarville Town Council has determined that it is necessary and proper to charge a returned check fee to any person writing a bad check to the Town in order to cover the costs to the Town.

NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LEO-CEDARVILLE, INDIANA;

1. If a person or entity tenders a check to the Town for payment of any cost, fee, charge, or fine and such check shall subsequently be dishonored by the drawee bank or financial institution, then upon protest by the Town, the drawer of the check and/or the person who tendered the check shall be responsible for paying to the Town the face amount of the check along with a service fee of fifteen and no/100 dollars ($15.00) as well as any related charges or fees charged to the Town by its bank or financial institution due to the dishonor of the check.
2. For purposed of this ordinance, the phrase “protest by the Town” shall mean the giving of notice (whether verbal or written) to the drawer or person tendering the check notice of its dishonor and a demand for payment.
3. If the person who drew the check or the person who tendered the check shall make payment to the Town of the face amount of the check prior to protest being made by the Town and if the Town incurred no charges or fees due to the dishonor of the check, then the service fee set forth in paragraph 1 above shall not be charged.
4. If payment of the face amount of the check along with the service fee and charges set forth in paragraph 1 above are not paid to the Town within thirty (30) days of protest by the Town, then the Town may sue to collect the face amount of the check along with any amount allowed by I.C. 26-2-7-6 or any other law pertaining to dishonored checks as well interest, legal costs and attorney fees.
5. Nothing in this ordinance shall excuse or replace any late fee which may otherwise be due from a resident or customer due to a late payment caused by a dishonored check. Any late fee charged pursuant to any statute or ordinance shall be charged in addition to the service fees and charges assessed hereunder due to the dishonored check.
6. All parts of previous ordinances in conflict herewith (including ordinance number 2007-01) are repealed to the extent of said conflict.
7. In the event any section, subsection, clause, phrase or portion of this chapter is for any reason held illegal, invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remainder of this chapter. It is the legislative intent of the council that this chapter would have been adopted if such illegal provision had not been included or any illegal application had not been made.
8. This Ordinance shall be in full force and effect upon its passage and publication in accordance with applicable law.

Passed and adopted by the Town Council of the Town of Leo-Cedarville, Indiana on this   12th   day of   June  , 2012.

  John Clendenen        
John Clendenen
President

  Tim Richards             
Tim Richards
Council Member

  Kevin Veatch             
Kevin Veatch
Council Member

  Paul Steffens            
Paul Steffens
Council Member

  Ted Garton               
Ted Garton
Council Member

      ATTEST: John Eastes                
John Eastes
Clerk-Treasurer