HomeMy WebLinkAboutResolutions - No. 97-135RESOLUTION NO. 97-135
A RESOLUTION OF THE LODI CITY COUNCIL SETTING FEES FOR
CHECKS RETURNED FOR NON -SUFFICIENT FUNDS, ACCOUNT
CLOSED AND REFERRED TO MAKER
WHEREAS, Section 1719 of the Civil Code provides that damages equal to treble the
amount of a insufficient funds check could be enforced under specific circumstances; and
WHEREAS, returned checks made payable to the City of Lodi have increased over 100%
in a nine (9) year period; and
WHEREAS, delinquent customers submitting checks drawn with non -sufficient funds
average 51 % of the total checks retumed; and
WHEREAS, an analysis of cost incurred by office staff in an attempt to collect exceed
$25.00 for each check, and the total cost at over $100.00 if field personnel are necessary to force
collection; and
WHEREAS, on September 27, 1996, Governor Wilson signed into law AB 2643, effective
January 1, 1997, which provides that a check -writer of the dishonored check shall be liable to the
"payee" (person named on the check) for a service charge in an amount not to exceed $25.00 for
the first check dishonored, and an amount not to exceed $35.00 for each subsequent checks
dishonored.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby sets the fee for
a check returned for non -sufficient funds, account closed, and referred to maker at $10.00 for the
first check dishonored and $25.00 for each subsequent check dishonored.
BE IT FURTHER RESOLVED by the Lodi City Council that this Resolution become
effective immediately.
Dated: September 3, 1997
hereby certify that Resolution No. 97-135 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held September 3, 1997, by the following vote:
Ayes:
Council Members — Land, Mann, Sieglock, Warner and Pennino (Mayor)
Noes:
Council Members — None
Absent:
Council Members — None
Abstain:
Council Members — None
ALICE M. RE MCHE
City Clerk
97-135