Amended: April 6, 2015
Purpose: The purpose of this policy is to document the procedure to follow in the event that a check is returned to the Association for any reason.
Procedure: Date stamp the notice when it has been received and make a phone call to the endorser of the check.
The letter is sent out via email, or US Postal Service to the endorser of the check, documenting the information regarding the check. The letter is to also include the amount owed plus the return check charge and the date it is due.
Should this matter not be resolved within 30 days of the notice of insufficient funds, the matter is referred to the Office of the District Attorney for the County of Riverside for further action.
Return Check Charge: Any person who passes a check on insufficient funds shall be liable for the amount of the check and a service charge of $25.00 for the first check and $35.00 for each subsequent check to that payee passed on insufficient fund. In accordance with the California Civil Code; Section 1719. The Board of Directors has adopted this fee and only they can amend or waive it.
2nd Violation Within One Year: Should a check from an Individual, or Company be returned twice within one year for any reason, the Southwest Riverside County Association of REALTORS® will no longer be able to accept a check from the Individual, or Company for a period of one year.
Not withstanding: A person shall not be liable for the service charge if, at any time, the person presents the payee with written confirmation by the financial institution due to error on the part of the financial institution.
A person shall not be liable for the service charge it, if the person presents insufficient funds as a result of a delay in the regularly scheduled posting of, a direct deposit of a social security, or government benefit assistance program.