40:5-18 - Service charge for NSF checks; collection - New Jersey Statutes

40:5-18.     Service charge for NSF checks; collection 
     a.   The governing body of a municipality may provide, by resolution or ordinance, for the imposition of a service charge to be added to any account owing to the municipality, if payment tendered on the account was by a check or other written instrument which was returned for insufficient funds. 

    b.   Whenever an account owing to a municipality is for a tax or special assessment, the service charge authorized by this section shall be included on whatever list of delinquent accounts is prepared for the enforcement of the lien. 

    c.   The service charge for a check or other written instrument returned for insufficient funds shall be determined and set by resolution or by ordinance of the governing body, from time to time, as appropriate, but shall not exceed $20 per check or other written instrument. 

    d.   Any service charge authorized by this section shall be collected in the same manner prescribed by law for the collection of the account for which the check or other written instrument was tendered.  In addition, the governing body may require future payments to be tendered in cash or by certified or cashier's check. 

    L.1990,c.105,s.1.