Part 2

PAYMENT AND COLLECTION

Sections:

• 1.17.060 Obligation defined.

• 1.17.070 Applicability of provisions.

• 1.17.080 Timely payment.

• 1.17.090 Payment by credit card.

• 1.17.100 Payment by check.

• 1.17.110 Payment by wire transfer.

• 1.17.120 Recovering collection costs.

• 1.17.130 Delinquent payment penalties.

• 1.17.140 Penalty for fraud.

• 1.17.150 Interest.

• 1.17.160 Contesting penalties and interest. 1.17.170 Partial payments.

  1. Any record of payment made, and any receipt issued acknowledging such payment, shall be null and void.

2. The obligation of the cardholder shall continue as an outstanding obligation as though no payment had been attempted.

(Ord. 26171.)

For purposes of this chapter, "obligation" means a tax, assessment, fee, deposit, charge, or any

T1:28

GENERAL PROVISIONS

§ 1.17.090

other amount of money that a person is obligated to pay to the city pursuant to this code or any other law. "Obligation" shall not include any payment to the city that a person is obligated to make pursuant to a contractual obligation. (Ord. 26171.)

The provisions of Part 2 of this chapter shall govern the payment and collection of obligations to the city except to the extent that the context of any other provision of this code conflicts with the requirements of this Part 2, in which case the conflicting provision shall govern. The purpose of this Part 2 is to set forth generally applicable provisions for the payment and collection of obligations where the code does not otherwise set forth such provisions. Any other provision of this code addressing a particular payment or collection issue addressed by this Part 2 shall govern that particular issue. (Ord. 26171.)

The following provisions shall govern the timely payment of obligations to the city regardless of the form of payment.

• A. The payment of an obligation is timely if it is received, on or before its due date, at the place designated by the director of the department to whom the payment is required to be made, during that department's normal business hours.

• B. Whenever the last day to timely pay an obligation falls on a Saturday or Sunday, a holiday observed by the city, or any other day in which the city is officially closed for the normal transaction of business, payment of the obligation is timely if it is received at the place designated by the director of the department to whom it is required to be made, during that department's normal business hours, on or before the next business day that the city is officially open to the public for the normal transaction of business.

  • C. An obligation for which payment is received after its due date is deemed timely if each of the following conditions are satisfied:

    1. Payment was deposited in the United States mail on or before the due date, as evidenced on the envelope by a postmark, postage cancellation mark of the United States Postal Service, or the uncancelled date of the meter stamp; and

    2. The payment was placed in an envelope properly addressed to the city with postage prepaid.

  • D. An obligation for which payment is received after its due date is considered timely if it was delivered on or before the due date to a common carrier promising delivery the next business day, as evidenced on the carrier's receipt.

  • E. An obligation for which payment is received after its due date is considered timely if the person making the payment furnishes proof satisfactory to the director of the department to whom the payment is required to be made that such payment was, in fact, deposited in the United States mail, postage prepaid and addressed to the city, or sent to the city via personal delivery or courier service, on or before the due date.

• (Ords. 24344, 26171.)

• A. Any person desiring to pay an obligation by credit card shall provide to the person designated by the director of the department to whom the payment is to be made, on or before the due date of such payment, the information necessary to properly process the credit card transaction.

• B. If a credit card draft is not paid following due presentment by the city to the credit card is-

T1:29

SAN JOSÉ CODE

• A. Any person desiring to pay an obligation by check shall provide to the person designated by the director of the department to whom the payment is to be made, on or before the due date of such payment, a properly completed and signed check in the amount of the obligation.

• B. If a check is not honored following due presentment by the city to the financial institution upon which the check is written, then the following shall occur.

  1. Any record of payment made, and any receipt issued acknowledging such payment, shall be null and void.

  2. The obligation of the check issuer shall continue as an outstanding obligation as though no payment had been attempted.

  3. Regardless of whether or not the payment of the obligation is delinquent, the check issuer shall be liable to the city for a returned check charge of the maximum amount permitted by law or such lesser amount as set forth in the schedule of fees and charges established by council resolution.

     • a. Any returned check charge imposed under this provision shall be added to and become a part of the underlying obligation.

     • b. Notwithstanding the foregoing, whenever the underlying obligation constitutes a lien on real property, the returned check charge imposed

under this provision shall not constitute part of the lien but shall be an unsecured debt owed to the city. (Ords. 24177, 26171.)

• A. A person making a payment of an obligation by electronic funds transfer shall provide to the person designated by the director of the department to whom the payment is to be made any documents and information necessary to complete such transaction.

• B. The payment of an obligation by electronic funds transfer is delinquent whenever the person making the payment fails to provide the city, on or before the due date of such payment, with the information necessary to properly process the electronic funds transfer.

• C. If the electronic funds transfer is reversed or cancelled by the person making the payment, then the following shall occur:

  1. Any record of payment made, and any receipt issued acknowledging such payment, shall be null and void.

  2. The obligation shall continue as an outstanding obligation as though no payment had ever been attempted.

(Ord. 26171.)

• A. Any person who fails to pay any obligation shall be liable in any action brought by the city for all costs incurred in securing payment of the delinquent amount, including, but not limited to, administrative costs and attorneys' fees.

• B. Collection costs shall be in addition to any penalties, interest, and/or late charges imposed upon the delinquent obligation.

• C. Collection costs imposed under this provision shall be added to and become a part of the underlying obligation.

(Ords. 23189, 26171.)

• A. Any person who fails to timely pay, in full, an obligation shall pay a first penalty of ten percent (10%) of the amount of the delinquent obligation.

T1:30

GENERAL PROVISIONS

§ 1.18.010

• B. Any person who fails to timely pay, in full, an obligation on or before thirty (30) days after its due date shall pay a second penalty of ten percent (10%) of the amount of the delinquent obligation in addition to the delinquent obligation and the first penalty.

• (Ord. 26171.)

• A. The director of the department authorized to receive payment of a particular obligation shall impose an additional penalty in the amount of twenty-five percent (25%) of the delinquent obligation if the director determines that all or part of the obligation is delinquent due to an intentional, material misrepresentation or omission, or fraud.

• B. The penalty imposed under this section is separate from, and in addition to, any other penalty or penalties imposed upon the delinquent obligation.

• (Ord. 26171.)

• A. Interest calculated on a monthly basis or any fraction thereof shall be imposed upon a delinquent obligation from the date such obligation becomes delinquent to the date it is paid.

• B. Interest calculated on a monthly basis or any fraction thereof also shall be imposed upon any penalty or penalties assessed under Sections 1.17.130 and 1.17.140.

  1. If more than one penalty is imposed, interest shall accrue separately upon each such penalty.

  2. Interest shall accrue on a penalty from the date the penalty is imposed to the date of payment of the delinquent obligation.

• C. The monthly rate of interest imposed pursuant to this section shall be that rate set forth in the schedule of fees and charges established by council resolution.

• (Ord. 26171.)

• A. A person responsible for paying a delinquent obligation may contest the imposition of any interest and penalty or penalties on the delinquent obligation in the same manner provided for contesting the underlying obligation.

• B. The only grounds for contesting the imposition of interest and any penalty or penalties on a delinquent obligation is that no obligation exists or that the payment of such obligation was not delinquent.

• C. The only ground for contesting the imposition of interest and any penalty or penalties on a delinquent obligation due to an intentional, material misrepresentation or omission, or fraud, is that there was no intentional, material misrepresentation or omission, or fraud.

• (Ord. 26171.)

Any partial payment of an obligation, when a partial payment is permitted, will be applied first to the principal amount of the underlying obligation, then to any penalties, and then to interest. (Ord. 26171.)