20.05 - Returned Checks

Last updated August 3, 2005

A. General. Any check that is issued to the UI and returned because of insufficient funds or for any other reason will be held by Business and Accounting Services for collection. Business Systems and Accounting Services will also take the following actions: [ed. 7-10] 

A-1. Departmental Charges. The UI department or other unit that accepts a check that is subsequently returned unpaid may be charged the amount that is uncollected after all collection proceedings have been carried out. In addition, UI departments that accept checks and fail to comply with 20.06, resulting in the return of stale dated or account-closed checks, will be charged the $20 service fee.  

B. Process. Business Systems and Accounting Services will initiate the following penalties for any checks returned because of insufficient funds or for any other reason. [ed. 7-10] 

B-1. Service Fee. A service fee of $20 for each returned check will be charged to the person who issues a check to UI that is returned unpaid because of insufficient funds, because it was written against a nonexistent account, or for any other reason.  

B-2. Privileges Revoked. The privilege of making payments to UI by check or of cashing checks at the cashier's window of Business Systems and Accounting Services or at the Student Union Building will be denied for the remainder of the academic year to any person who issues a total of three (3) checks that are returned in an academic year. This privilege will not be reinstated by the redemption of the checks. Moreover, the issuer of returned checks that are not redeemed by the end of the academic year will be denied check-cashing privileges for the succeeding academic year. [ed. 7-10] 

B-3. Legal Proceedings. Legal collection proceedings may be followed when a returned check is not redeemed within 15 days after written notification of its return has been sent by the UI Business Systems and Accounting Services. [ed. 7-10] 

B-4. Registration Withheld. A student's registration at the UI may be canceled if a check issued to UI in payment of his or her registration fees is returned unpaid and is not redeemed within 10 days after due notification by Business Systems and Accounting Services. [ed. 7-10]