Previous Story
DoF: $296K bounced checks uncollectible
|
Posted on Feb 26 2006
Due to inaction, the CNMI government may no longer collect almost $300,000 worth of bounced checks issued to the Department of Finance since 1983.
The administration has determined that the total amount of uncollected checks currently under the Finance Department is $599,440.
However, $296,230 will have to be written off due to the expiration of the six-year statute of limitations.
Gov. Benigno R. Fitial said the Commonwealth Returned Check Enforcement Program, which seeks to resolve many long-standing checks that have been paid to the CNMI dating back to 1983, will focus on the collection of the remaining $303,209.
This amount includes $293,933 that is collectible within Saipan; $6,259 within Rota; and $3,017 within Tinian.
It involves 654 bounced checks that are still within the statute of limitations as of April 2006.
To collect, Finance and the Attorney General’s Office will send out 604 demand letters within Saipan, 19 within Rota, and four on Tinian.
A 60-day grace period, ending on April 28, will also be given to all individuals to correct any errors in Commonwealth records and allow payment arrangements to avoid additional penalties.
Finance and the AGO urged all individuals with outstanding checks who wish to correct any errors in Commonwealth records or to make payment arrangements to make an appointment to meet with agency representatives prior to the end of the grace period.
“Due to limited resources, appointments must be made to meet with representatives of the respective agencies. Because of limited resources, individuals are cautioned not to wait until the last minute to make these arrangements, as appointment time may not be available,” the agencies stressed.
Both attorney’s fees and damages and equal to three times the face value of the check will be imposed on individuals who fail to address any valid claims or the maximum allowed by law.
Furthermore, the new returned check enforcement plan places a strong emphasis on criminal prosecution and guaranteed civil enforcement, Finance and the AGO said.
