N.Y. State Finance Law § 19: Returned check charge

§ 19. Returned check charge. 1. As used in this section, (a) "state

agency" shall mean any state department, board, bureau, division,

commission, committee, public authority, public benefit corporation,

council, office, or other governmental entity performing a governmental

or proprietary function for the state; and (b) "dishonored check" shall

mean a check, draft or like instrument drawn on a bank, depository or

financial institution as full or partial payment for an unpaid balance

on an account, or for other extensions of credit or payments of money,

which is not paid or is dishonored or is returned by such institution

due to insufficient funds or other cause not attributable to the state

of New York.

2. Any individual, business or other entity, which is not a state

agency, municipal corporation or district corporation, which makes

payment to a state agency by a check which is dishonored shall be liable

to such state agency for a returned check charge. The state director of

the budget shall: (i) promulgate such guidelines as the director deems

necessary to carry out the provisions of this section and (ii) establish

a reasonable monetary amount of the returned check charge which shall

not exceed the amount set forth in section 5-328 of the general

obligations law.

3. Any returned check charges assessed pursuant to this section shall

be paid upon notice and demand and shall be treated and collected in the

same manner as the original debt upon which the dishonored check was

received and shall be collected by a state agency when such agency deems

collection to be administratively practical and cost-effective.

4. The provisions of this section shall not supersede any provision of

law or regulation or contract which provides a remedy for the remittance

of a dishonored check to the state of New York.

5. All contracts entered into or any regulation promulgated on or

after the effective date of this section which waives the imposition of

returned check charges or imposes returned check charges in a manner

inconsistent with this section must be approved by the state division of

the budget.