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ORDINANCE NO. 17,794
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AN ORDINANCE AUTHORIZING THE CITY ATTORNEY AND
DIRECTOR OF FINANCE TO PROCESS WORTHLESS CHECKS,
ORDERS OR DRAFTS ( "HOT CHECKS ") FOR HOLDERS
THEREOF WHICH DO NOT EXCEED TWO HUNDRED ($200.00)
DOLLARS, DECLARING AN EMERGENCY; AND FOR OTHER
PURPOSES.
10 WHEREAS, Little Rock merchants, wage earners, and other persons suffer business
1 I losses due to the problem of worthless checks ( "hot checks ") ; and
12 WHEREAS, such citizens of Little Rock an immediate need for the expeditious
13 collection of worthless checks at a convenient location in the City; and
14 WHEREAS, the Little Rock Municipal Courts building and City Hall are such a
15 convenient location; and
16 WHEREAS, Cities are authorized and empowered to prescribe penalties for all
17 offenses in violating any ordinance of the City neither exceeding nor less severe than the
18 penalties prescribed for similar offenses against the state laws by the statutes of this state.
19 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
20 OF THE CITY OF LITTLE ROCK, ARKANSAS:
21 SECTION 1. The City Attorney and Director of Finance be and hereby are authorized
22 to implement the collection of worthless checks, orders, or drafts ( "hot checks ") which do not
23 exceed $200.00, for prosecution in Little Rock Municipal Court.
24 SECTION 2. It shall be unlawful for any person:
25 (a) To procure any article or thing of value, or to secure possession of any personal
26 property to which a lien has attached or to make payment of rent or to make payment for any
27 other purpose to make or draw or utter or deliver, with the intent to defraud, any check, draft,
28 or order for the payment of money upon any in -state or out -of -state bank, person, firm, or
29 corporation, knowing at the time of such making, drawing , uttering, or delivering that the
30 maker or drawer has not sufficient funds in, or on deposit with, such bank, person, firm, or
31 corporation for the payment of such check, draft, or order in full, and all other checks, drafts,
32 or orders upon such funds than outstanding.
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I (b) To make, draw, utter, or deliver or to cause or direct the making, drawing, uttering,
2 or delivering of any check, draft, or order for the payment of money on any in -state or out -of-
3 state bank, person, firm, or corporation in payment of wages or salaries for personal services
4 rendered, knowing that the maker, drawer, or payor does not have sufficient funds in or on
5 deposit with such bank person firm, or corporation for the payment in full of such check, draft,
6 or order, as well as all other then - outstanding checks, drafts, or orders upon such funds, and
7 with no good reason to believe the check, draft, or order would be paid upon presentation to
8 the person or bank upon which same was drawn.
9 (c) After he has made, drawn, uttered, or delivered a check, draft, or order for the
10 payment of money upon any in -state or out -of -state bank to withdraw or cause to be
11 withdrawn, with intent to defraud, the funds or any part thereof that have been deposited in the
12 bank before presentment of the check, draft, or order for payment, without leaving sufficient
13 funds in the bank for payment in full of the check, draft, or order and all other checks, drafts,
14 or orders upon the funds then outstanding.
15 SECTION 3. It is prima facie evidence that the maker or drawer intended to defraud
16 and knew at the time of the making, drawing, uttering, or delivering that the check, draft, or
17 order would not be honored if.
18 (1) The maker or drawer had no account with the drawee at the time the check, draft,
19 or order was made, drawn, uttered, or delivered; or
20 (2) The check, draft, or order bears the endorsement or stamp of a collecting bank
21 indicating that the instrument was returned because of insufficient funds to cover the value; or
22 (3) Payment was refused by the drawee for lack of funds, upon presentation within
23 thirty (30) days after delivery, and the maker or drawer shall not have paid the holder the
24 amount due, together with a service charge not to exceed twenty dollars ($20.00), within ten
25 (10) days after receiving written notice that payment was refused upon the check, draft, or
26 order. Nothing in this section shall impair the city attorney's power to immediately file charges
27 after the check has been returned prior to the sending of the notice as described in this section.
28 SECTION 4. The check, draft, or order bearing an "insufficient" stamp or "no
29 account" stamp from the collecting bank shall be received as evidence that there were
30 insufficient funds or no account at trial. Nothing herein shall be deemed to abrogate a
31 defendant's right of cross - examination of banking officials provided notice of intention to
32 cross - examine is given ten (10) days prior to the date of hearing or trial.
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I SECTION. Any person convicted of a violation any of the provisions of this
2 ordinance shall be punished as provided in section 1 -9.
3 SECTION 6. In addition to the fines and costs provided by law, the City Attorney
4 may collect a fee, pursuant to Ark. Code Ann. § 21 -6 -416 and Ark. Code Ann. § 14 -43 -410,
5 from any person issuing a hot check as described in this ordinance for all prosecutions tried in
6 municipal court, as follows:
7 (1) Five dollars ($5.00) if the face amount of the check, order or draft does not exceed
8 ten dollars ($10.00):
9 (2) Ten dollars ($10.00) if the face amount of the check, order or draft is greater than
10 ten dollars ($10.00) but does not exceed one hundred dollars ($100);
11 (3) Thirty dollars ($30.00) if the face amount of the check, order or draft is greater than
12 one hundred dollars ($100) but does not exceed two hundred dollars ($200).
13 Such fees shall be deposited in the Hot Check Fund and used to defray the costs of the
14 Hot Check Program.
15 SECTION 7. The Director of Finance and the City Attorney are hereby directed to
16 report annually to the Board of Directors on the status of this service to Little Rock citizens.
17 SECTION 8. This ordinance is cumulative to Little Rock, Ark. Rev. Code § 18 -3
18 (1988), and shall not amend or repeal it.
19 SECTION 9. If any provision of this ordinance or the application thereto any person
20 or circumstance is held invalid, the invalidity shall not affect other provisions or applications of
21 the ordinance which can be given effect without the invalid provision or application, and to this
22 end the provisions of this act are declared to be severable.
23 SECTION 10. EMERGENCY. It is hereby found and determined by the Board of
24 Directors that the merchants, wage earners, and other persons of the City of Little Rock suffer
25 financial losses due to worthless checks ( "hot checks ") and that this creates a burden upon
26 those citizens and their businesses; that it is a further burden on citizens or businesses not to
27 have a convenient forum to collect and prosecute insufficient checks; that Little Rock Municipal
28 Court and City Hall locations are convenient to many citizens, and that such a program to
29 collect and prosecute worthless checks for the citizens of Little Rock should begin forthwith.
30 Therefore, an emergency is hereby declared to exist and this Ordinance being immediately
31 necessary for the preservation of the public peace, health and safety shall become effective on
32 the date of its approval by the Board of Directors.
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PASSED: August 11, 1998
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ATTEST:
APPROVED:
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°i cA-
ROBBIE HANCOCK
JIM 041LEY
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CITY CLERK
MAYIUR
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APPROVED AS TO FORM:
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,y�A,tr,� -rte at • �2-_._
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THOMAS M. CARPENTE
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CITY ATTORNEY
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