Proposed by: Comptroller

Approved by: President and Vice-President for Administration & Finance

Effective date: July 1, 2001

Amendment date(s):

 Part I. Purpose

To inform University departments and students of the actions that the University will take when an item has been returned without payment.

A check that is issued to the University and returned because of insufficient funds is automatically deposited a second time in an effort to clear the payment. All returned checks that are not cleared after the second deposit are subject to a $25.00 returned check fee. The Business Office will send an invoice letter to the payor for the returned check and associated returned check charge to be paid immediately by cash, credit card, cashier’s check or money order. After redemption and upon request, the returned check will be released to the payor.

If the check is from a payor that is a student, the check and returned check fee are charged to his/her student account and finance charges are assessed after 30 days, if the balance is not paid. If the payor is not a student, the Business Office notifies the department responsible for requesting the funds from the payor. The department must curtail all services being provided, cancel the payor’s registration, and/or retrieve all materials sold to the payor until the check and returned check fee have been paid. The University reserves the right to prosecute anyone who issues a returned check in accordance with the laws of the Commonwealth of Virginia.

If the check returned is due to a bank error, a letter is required from the payor’s bank explaining the error. Once it is received, the returned check fee and finance charges, if applicable, will be cancelled and the payor will be responsible only for redeeming the returned check.

Stopped payments are treated as any other returned check, with identical consequences.

Students and other payors who have had two checks returned to Shenandoah University are placed on a cash payment basis only (no checks accepted) for six months. Three or more returned checks result in the suspension of check-writing privileges for two years. At the end of these periods, check-writing privileges may be restored; however, Shenandoah University reserves the right to withhold these privileges.

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