11-645. Warrants and substitute checks unpaid
for lack of funds; interest; notice; reissued warrants;
definitions
A. Notwithstanding sections 11-635, 11-636 and 11-638, this section applies to each
county treasurer of a county in this state that has a population of two million or more
persons.
B. If a revolving line of credit has not been obtained for a political subdivision
or if the revolving line of credit has been expended and if there are insufficient funds
in the issuer's account, the treasurer shall write or stamp on the face of the warrant or
substitute check "not paid for lack of funds" and the date of presentation, and from that
time until it is paid, the warrant or substitute check shall bear no more than ten per
cent interest per year. If a physical warrant is not presented to the treasurer but the
treasurer receives an electronic notice that the warrant was issued, the treasurer shall
notify the servicing bank that the warrant will not be paid for lack of funds, and from
that time until there are sufficient funds to pay the original warrant, the original
amount of the warrant shall bear no more than ten per cent interest per year.
C. The treasurer shall keep a register of warrants and substitute checks presented
for payment.
D. When there is sufficient money in the treasury to pay the warrants drawing
interest and registered pursuant to this section, the treasurer shall notify the issuing
entity of the availability of the monies. The monies shall be placed in a clearing fund
or other appropriate fund that is agreed on by the treasurer and district. The issuing
entity shall issue new warrants, which shall include the original principal amount and
any accrued interest, and notify the treasurer of the warrant numbers, amounts and
payees.
E. When only part of the warrants presented on the same day are payable, the
treasurer shall designate the payable warrants and notify the issuing entity of the
warrants to be paid and the warrants to be registered.
F. A warrant that is reissued pursuant to this section shall be processed pursuant
to section 11-644.
G. For the purposes of this section, "substitute check" and "warrant" have the same
meanings prescribed in section 9-249.
|