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Section 11: Cash and Investments

Returned Checks

Effective Date:

08/17/10

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

n/a

For Assistance Contact:

Director of Financial Services and University Bursar: 210-458-4221

Associate Bursar: 210-458-4293

PURPOSE/SCOPE

This guideline establishes procedures for returning checks when the bank will not honor the payment amount.

AUTHORITY

Authority is provided by the University of Texas System Administration Policy – UTS 166 – Cash Management and Cash Handling Policy.


UNIVERSITY GUIDELINES

Table of Contents

A. General Information

Paper or electronic (e-check) checks may be returned unpaid for any reason, including non-sufficient funds (NSF), stop payment, online data entry error or closed account.

Upon notification by UTSA’s bank of a returned check, Fiscal Services will make adjusting entries on the student or departmental account and/or add holds as appropriate.

B. Faculty and Staff Returned Checks

UTSA faculty or staff employees presenting a paper or electronic check for payment to UTSA that is subsequently returned for any reason are subject to a $25 returned check fee assessed to the originator of the check payment.

Fiscal Services will reverse the credit posted to the affected account.

C. Student Returned Checks

UTSA students that present a paper or electronic check for payment that is subsequently returned without credit for any reason are subject to a $25 returned check fee assessed to the student’s account.

A hold will be placed on a student’s account, causing a loss of services until repayment has been made including, at UTSA’s discretion:

  • Suspension or withdrawal from current enrollment;

  • Bar against readmission;

  • Withholding of grades, transcripts or degree;

  • Removal from UTSA Housing;

  • Placement of the past-due balance with a professional collection agency.

Fiscal Services will not accept a check from a student who willingly or unwillingly has previously submitted two returned checks to the University.

D. Repayment

The Office of Financial Services and University Bursar initiates the repayment process by submitting the official request for repayment via US Mail to the originator of the check and retains the original documents on file.

Repayment may be made by cash, credit card (in person with signature) or money order with Fiscal Services.


DEFINITIONS

Term Description

E-check (Electronic Check)

Electronic non-paper payment submission from the customer’s bank account.

Non-Sufficient Funds (NSF)

Sufficient funds are not available in the customer’s bank account leading to a return of the check without payment A check has been presented for clearance, but the amount written on the check exceeds the available balance in the bank account. An NSF check is also referred to as a bad check or dishonored check.

Returned Checks

A check submitted for payment to the University that is not honored by the account holder’s bank and therefore, returned.

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

No related forms or worksheets at this time.


REVISION HISTORY

Date Description

08/17/10

Guideline published.


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