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LL POLICY & PROCEDURE
Subject: Index: Finance (Court)
HANDLING AND COLLECTION OF Number: 220-06
RETURNED CHECKS COURT
Effective Date Supersedes Page Staff Co ct Approved By
5/1/2003 N/A 1 of 2 Joe Mc
1.0 PURPOSE:
To establish a policy regarding the handling and collection of returned checks in
Municipal Court.
2.0 ORGANIZATIONS AFFECTED:
Renton Municipal Court
3.0 REFERENCES:
RCW 3.02.045(5)
RCW 19.16.500
RCW 62A.3-104
RCW 62A.3-515
4.0 DEFINITION:
Returned Check: Any check, money order, cashier's check, or traveler's check that
is dishonored and returned unpaid to the Court.
5.0 POLICY:
5.1 It shall be the policy of the Renton Municipal Court that any check returned
unpaid through the Court's bank will be considered a fair and owing debt to
the Court.
5.2 All returned checks will incur a $20.00 handling fee. This fee will cover the
bank costs and processing fees associated with handling a returned check.
Additionally, a returned item may be subject to collection fees and interest as
prescribed by RCW 62A.3-515,RCW 19.16.500, and RCW 3.02.045(5).
5.3 Returned checks will be held in the Renton Municipal Court for a 15-day
grace period. The Court will send a letter to the maker notifying them of the
15-day grace period. During the 15-day grace period the maker may redeem
the item with guaranteed funds for the face value plus the $20.00 handling
fee.
lq. 5.4 Payment for returned checks are to be made only to the Court cashier. It is
the responsibility of the customer redeeming a returned check to inform the
cashier if a payment is being made to redeem a returned item.
5.5 At the expiration of the 15-day grace period, returned checks will be referred
to the Court's designated collection agent. Once a check has been referred to
the Court's collection agent for processing, the court may no longer accept
payment for that item, and the check must be redeemed with the collection
agent.
6.0 PROCEDURES:
6.1 When an item is returned from the Court's bank, it will remain in the Court
for handling. All returned items will be redeemed either through the Court
or, if the allowed grace period has expired, through the Court's designated
collection agent.
6.2 Fifteen days from the date an item is returned, it becomes eligible for referral
to the Court's designated collection agent. During the 15 days, the maker of
the check may redeem the check from the Court at face value and incur the
20.00 processing fee. Once a check has been referred to the collection
agent, the cost of redemption will increase in accordance with RCW
19.16.500 for those fees applied by the collection agent. Additional charges,
added by the collection agent, will be paid by the debtor.