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Can you summarize Chapter 12.?
Division of Finance - Department of Administration > Acceptance of Checks, Drafts & Fees for Returned Checks
Short Summary
The provided legal document content governs the acceptance of checks, drafts, and fees for returned checks by the Division of Finance - Department of Administration in Guam. It establishes that the use of checks or drafts is a privilege and not a right, and the Government of Guam accepts them with the expectation that the maker has sufficient credit or funds to cover the amount. If checks or drafts are returned for collection due to insufficient funds or other reasons, the costs of processing the check should be borne by the individuals, partnerships, or corporations who caused the government to incur collection costs. The document provides definitions for various terms related to checks, drafts, and financial transactions within the government of Guam. It specifies the conditions for accepting checks as a form of payment to the Treasurer of Guam, including the requirement for personalized checks in the amount of payment due, checks drawn on a bank in the Federal Reserve System, and the inclusion of payor information on the check. The Treasurer of Guam has the right to refuse payments by checks that do not meet these conditions or are on the bad check list. The document establishes a bad check processing charge of $25.00 for each check or draft returned to the Treasurer of Guam for collection, with an exception for bad checks presented as payment for income taxes. Makers of bad checks are required to make good the amount of the check and the processing charge with a U.S. postal money order, certified check, cashier’s check, or cash. The document outlines the consequences for makers of bad checks, including placement on the bad check list, restrictions on making payments by check or draft, and the government’s right to share information with credit bureaus or credit groups. Makers of bad checks have thirty (30) calendar days to make good the bad check amount and charge before further collection actions may be taken. The Government of Guam retains its right to impose additional charges, penalties, or interest authorized by tax laws or applicable to Guam.
Whom does it apply to?
Individuals, partnerships, and corporations who issue checks or drafts drawn on the accounts of the Government of Guam, employees and drawees involved in financial transactions with the government of Guam
What does it govern?
Acceptance of checks, drafts, and fees for returned checks
What are exemptions?
The exception to the $25.00 charge is for bad checks returned that were presented as payment for income taxes defined under the United States Internal Revenue Code.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Guam