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This entry was published on 2014-09-22
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Returned check charge
State Finance (STF) CHAPTER 56, ARTICLE 2
§ 19. Returned check charge. 1. As used in this section, (a) "state
agency" shall mean any state department, board, bureau, division,
commission, committee, public authority, public benefit corporation,
council, office, or other governmental entity performing a governmental
or proprietary function for the state; and (b) "dishonored check" shall
mean a check, draft or like instrument drawn on a bank, depository or
financial institution as full or partial payment for an unpaid balance
on an account, or for other extensions of credit or payments of money,
which is not paid or is dishonored or is returned by such institution
due to insufficient funds or other cause not attributable to the state
of New York.

2. Any individual, business or other entity, which is not a state
agency, municipal corporation or district corporation, which makes
payment to a state agency by a check which is dishonored shall be liable
to such state agency for a returned check charge. The state director of
the budget shall: (i) promulgate such guidelines as the director deems
necessary to carry out the provisions of this section and (ii) establish
a reasonable monetary amount of the returned check charge which shall
not exceed the amount set forth in section 5-328 of the general
obligations law.

3. Any returned check charges assessed pursuant to this section shall
be paid upon notice and demand and shall be treated and collected in the
same manner as the original debt upon which the dishonored check was
received and shall be collected by a state agency when such agency deems
collection to be administratively practical and cost-effective.

4. The provisions of this section shall not supersede any provision of
law or regulation or contract which provides a remedy for the remittance
of a dishonored check to the state of New York.

5. All contracts entered into or any regulation promulgated on or
after the effective date of this section which waives the imposition of
returned check charges or imposes returned check charges in a manner
inconsistent with this section must be approved by the state division of
the budget.