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HAMIOTA MUNICIPALITY
Policies and Procedures
Policy Number: 500.2 Section: Finance
Subject: NSF Cheques
Passed by Resolution of Council: #5 - April 20, 2016
BACKGROUND
From time to time a ratepayer will write a cheque that comes back to the Municipality from the
bank NSF. Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a
demand for payment (a cheque) cannot be honored because insufficient funds are available in
the account on which the instrument was drawn. The result is costs incurred by the
Municipality i.e. man hours and Financial Institutions used to correct the accounts. A policy
needs to be set to recover costs of the NSF cheques.
POLICY/PROCEDURE
1. A $25.00 surcharge for each NSF Cheque will be charged to the offender's account and
notification will be given by letter.
2. After the 2nd offence the Municipal Office will no longer accept cheques from this
customer;
i. Other methods of payment accepted will be by Debit, Cash, Direct
Deposit, Certified Cheque or Money Order.
3. A list of NSF Offenders will be posted on the Sticky Note Program on the desk top of the
Counter Computer.
4. The NSF Offenders' List will be reviewed yearly to be updated.