SECTION 710:60-9-94. Procedures for reporting and collecting dishonored checks on OTC transactions

  The following procedures should be followed in the event a check deposited by a motor license agent is returned unpaid.

(1)   Notice of dishonored check. The bank should notify the agent that they are holding an unpaid item. The agent must make two (2) attempts to redeem the check through the depository bank. Should the bank refuse to accept the dishonored check a second (2^nd) time, it shall be treated as if two (2) attempts were made. The agent shall retrieve the check immediately from the bank utilizing one of the following methods:

(A)   The agent may utilize current funds due the OTC to reimburse the bank for the dishonored check and immediately forward the check and supporting documentation to the Commission for review and credit. If not received by the Commission within five (5) business days of retrieval, the OTC funds utilized will be considered delinquent and the delinquent depositing penalties outlined in 47 O.S. § 1142 shall apply.

(B)   The agent may utilize personal funds to reimburse the bank for the dishonored check and attempt collection from the taxpayer for a period of thirty (30) days, as set forth below.

(2)   Procedure for collection of dishonored check; applicable penalties; taxpayer liability. An initial returned check fee of $25.00 is to be charged to the maker of a dishonored check, after an attempt has been made to deposit the check twice. Should payment for the check be subsequently collected by any motor license agent, that agent may retain the $25.00 returned check fee. Any accrued penalty to date of collection is to be assessed. The taxpayer is notified to remit payment immediately to the tag office. If the agent's collection attempts on a check retrieved from the depository bank with personal funds are unsuccessful, the agent shall send to the Oklahoma Tax Commission the dishonored check, agent's file copies of documents on which the check was issued, and a copy of the notification to the taxpayer within thirty (30) days of retrieval from the depository bank. Upon receipt of the required documentation, the Commission will issue credit to the agent's account in the full amount of the check. Copies of all transaction and correspondencedocumentation is to be retained in the motor license agent's office. In the event the taxpayer returns all items issued by the motor license agent, the insufficient check is not to be returned to the taxpayer, or the transaction cancelled by the agent. Return of these items does not relieve the taxpayer of responsibility to remit the proper fees to the State of Oklahoma.

(3)   Subsequent tender of payment. After the documents and dishonored check have been forwarded to the Motor Vehicle Division, the agent shall not accept payment from the registrant without contacting the Division for instructions.

(4)   License plate or decal may be held. The motor vehicle agent may hold a license plate or decal until the taxpayer's check has cleared the bank.

(5)   Dishonored checks to be forwarded to the Oklahoma Tax Commission; time limits. Dishonored checks for which the agent utilizes OTC funds to retrieve from the depository bank are to be forwarded immediately to the Oklahoma Tax Commission, along with the documentation required by the Commission to record and confirm date of retrieval from the depository bank. Information relating to any dishonored check retrieved with OTC funds is to be timely entered to the MLA deposit entry program, in the manner outlined by the Commission. All dishonored checks retained by the agent for attempted collection and for which payment is not received are to be sent to the Oklahoma Tax Commission no later than thirty (30) days after the date picked up from the bank. Further delays in processing may prevent collection.

(6)   Purchaser not responsible. The purchaser of a vehicle shall not be required, as a condition for registration of the vehicle, to pay any tax, fee or penalty due resulting from a dishonored check submitted by the previous owner.

[Source: Added at 8 Ok Reg 3305, eff 7-8-91 (emergency); Added at 9 Ok Reg 2151, eff 6-12-92; Amended at 11 Ok Reg 3507, eff 6-26-94; Amended at 11 Ok Reg 4691, eff 8-15-94 (emergency); Amended at 12 Ok Reg 2931, eff 7-14-95; Amended at 13 Ok Reg 3113, eff 7-11-96; Amended at 21 Ok Reg 1137, eff 5-13-04; Amended at 24 Ok Reg 2375, eff 6-25-07; Amended at 27 Ok Reg 2293, eff 7-11-10; Amended at 33 Ok Reg 1081, eff 8-25-16; Amended at 34 Ok Reg 2079, eff 9-11-17]