File #: 21-1895    Version: 1 Name: Ordinance: Amending Fees for Dishonored/Returned Checks
Type: Ordinance Status: Adopted
File created: 12/16/2021 In control: Finance
On agenda: 3/2/2022 Final action: 4/6/2022
Title: AN ORDINANCE TO AMEND TITLE 2, ADMINISTRATION, CHAPTER 4, GENERAL ADMINISTRATION, SECTION 4.7, EFFECT OF DISHONORED CHECKS GIVEN IN PAYMENT OF A LICENSE FEE, PERMIT FEE OR SERVICE CHARGE; SUSPENSION UNTIL PAYMENT OF ADDITIONAL CHARGES, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 1990, AS AMENDED AND SUPPLEMENTED TO INCREASE THE ASSESSED RETURN FEE CHARGE AND INCLUDE TAX ABATEMENT CHARGES OR FEES, WATER/SEWER BILLS, WATER/SEWER PERMITS, LICENSE FEES, PERMIT FEES, OR ANY OTHER CHARGES, PERMITS OR FEES PAID FOR.
Sponsors: Council of the Whole

Title

AN ORDINANCE TO AMEND TITLE 2, ADMINISTRATION, CHAPTER 4, GENERAL ADMINISTRATION, SECTION 4.7, EFFECT OF DISHONORED CHECKS GIVEN IN PAYMENT OF A LICENSE FEE, PERMIT FEE OR SERVICE CHARGE; SUSPENSION UNTIL PAYMENT OF ADDITIONAL CHARGES, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 1990, AS AMENDED AND SUPPLEMENTED TO INCREASE THE ASSESSED RETURN FEE CHARGE AND INCLUDE TAX ABATEMENT CHARGES OR FEES, WATER/SEWER BILLS, WATER/SEWER PERMITS, LICENSE FEES, PERMIT FEES, OR ANY OTHER CHARGES, PERMITS OR FEES PAID FOR.                         

 

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WHEREAS, Banking fees imposed upon the City of Newark, for dishonored, returned checks for payments has increased to Thirty-Five Dollars and Zero Cents ($35.00), therefore, the Director of the Department of Finance recommends increasing the fee accordingly; and

 

WHEREAS, the Director of the Department of Finance seeks to amend the City’s Ordinance for Dishonored Checks to include returned checks/payments for Property Taxes and Tax Abatements and other permits and licenses not covered by the Ordinance.

 

NOW THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:

 

[Deletions are indicated by strikethrough, additions are indicated by bold and underlined.]

 

SECTION 1:    Title 2, Administration, Chapter 4, General Administration, Section 4.7, Effect of Dishonored Checks Given in Payment of a License Fee, Permit Fee or Service Charge Suspension until Payment of Additional Charges is hereby amended as follows:

 

a.                     Whenever a check is given in payment of a license or permit fee or a service charge, payment of Property Taxes, any Tax Abatement charge or Water/Sewer charges such check is received and accepted by the City upon the express condition that the maker covenants that the same is regular on its face, upon an account of which drawn, with sufficient funds for the payment thereof.

 

b.                     The issue of a Municipal license, or permit or rendering a Municipal service, payment of Property Taxes, any Tax Abatement charge or Water/Sewer charges are is and shall be conditioned upon an additional charge for any check given and is therefore which is dishonored by the bank upon which it is drawn for being irregular as to signature or otherwise of for lack of an account there or insufficient funds for payment. The amount of such charges shall be $25 for any one check, except when more than one water account is paid by one check.  In this case, an additional $25 charge shall be added on each and every water account paid by that check. dishonored, not paid, funds not collected and/or returned by the bank for any reason, the City of Newark shall assess a charge of Thirty-Five Dollars and Zero Cents ($35.00) for that check, except when more than one account was paid, or more than one fee was paid, or more than one permit was issued, in that case, an additional Thirty-Five Dollars and Zero Cents ($35.00) charge will be added to each transaction and assessed to each account.

 

c.                     When a check is returned the license or permit issued shall be void and, if for a service, the service shall be discontinued until the amount of the check plus the charges as set forth in paragraph b of this subsection shall be paid to the City.

 

Section 2:  If any part of this Ordinance is declared unconstitutional or invalid, the remaining provisions shall continue in full force and effect.

 

Section 3:  This Ordinance shall take effect upon final passage and publication in accordance to the law of the State of New Jersey. 

 

 

STATEMENT

 

An Ordinance to Amend Title 2, Administration, Chapter 4, General Administration, Section 4.7, Effect of Dishonored Checks Given in Payment of a License Fee, Permit Fee or Service Charge Suspension until Payment of Additional Charges due to increased Banking fees imposed upon the City of Newark, all dishonored, returned checks for payments made will be assessed a fee of $35.00 for each transaction returned to the institution.