POLICY TITLE:

Returned Checks

POLICY ADDRESS:

https://documents.ku.edu/policies/comptroller/Comptroller-Bursar-Returned_Checks.htm

POLICY PURPOSE:

Protect the university from non-sufficient payments.

APPLIES TO:

University of Kansas departments that receive checks, e-checks, money orders, or other payment instrument upon which the instrument is drawn. 

All parties making payment to the university with an instrument that may fail to clear the financial institution upon which the instrument is drawn.

POLICY STATEMENT:

Deposited checks or e-checks that do not clear the bank the first time will be automatically processed by the bank a second time.  If the check still does not clear, the bank will return the check to the Bursar's Office.  The Bursar's Office will determine the account to which the check was originally credited and start collection activity on the insufficient funds check.  A "no check" indicator will be placed on the student's account indefinitely.

The Board of Regents approved the following policy effective July 1, 1992:  "A charge of $30.00 will be made to a debtor's account for each check, draft, money order or other payment instrument which fails to clear the financial institution upon which the instrument is drawn.  A $30.00 charge will be assessed by the University department that is responsible for collection of the dishonored items.  All subsequent payments received by the University in settlement of debt will be applied first to the returned check fee, if applicable, and then to the original amount owed.  The University reserves the right to require payment by cash, money order or cashier's check for settlement of a debt after the initial payment has been dishonored."

CONTACTS:

Responsible Office: Bursar’s Office

Contact: 

Assistant Comptroller/Bursar

Bursar's Office
University of Kansas
1450 Jayhawk Blvd, Room 21/23
Lawrence, KS 66045-7505

bursar@ku.edu
Ph (785) 864-3322
Fax (785) 864-5059

APPROVED BY:

The Board of Regents

APPROVED ON:

July 1, 1992

EFFECTIVE ON:

July 1, 1992

KEYWORDS:

NSF, non-sufficient funds, returned checks, check, draft, money order, late fee, e-check, no check indicator

REVIEW/CHANGE HISTORY:

July 1, 1992