|(a) Purpose. Business and Commerce Code, Section 3.506,
authorizes the holder of a dishonored check seeking collection of
the face value of the check to charge the drawer or endorser of the
check a processing fee in an amount authorized by that section. This
section prescribes policies and procedures for the processing of dishonored
checks made payable to the department and the collection of fees because
of the dishonor of a check made payable to the department.
(b) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Department--The Texas Department of Transportation.
(2) Dishonored check--A check, draft, order, or other
instrument that is drawn or made upon a bank or other financial institution,
and that is not honored upon presentment because the account upon
which the instrument has been drawn or made does not exist or is closed,
or does not have sufficient funds or credit for payment of the instrument
(c) Processing of dishonored checks. Upon receipt of
notice from a bank or other financial institution of refusal to honor
a check made payable to the department, the department will process
the returned check using the following procedures.
(1) The department will send a written notice by certified
mail, return receipt requested, to the drawer or endorser at the drawer
or endorser's address as shown on:
(A) the dishonored check;
(B) the records of the bank or other financial institution;
(C) the records of the department.
(2) The written notice will notify the drawer or endorser
of the dishonored check and will request payment of the face amount
of the check and a processing fee no later than 10 days after the
date of receipt of the notice. The written notice will also contain
the statement required by Penal Code, §32.41(c)(3).
(3) The face amount of the check and the processing
fee must be paid to the department:
(A) with a cashier's check or money order, made payable
to the Texas Department of Transportation; or
(B) with a valid credit card issued by a financial
institution chartered by a state or the United States.
(4) Payments made by credit card must include the fee
required by §5.43(c) of this chapter (relating to Methods of
(5) If payment is not received within 10 days after
the date of receipt of the notice, the obligation will be considered
delinquent and will be processed in accordance with §5.10 of
this subchapter (relating to Collection of Debts).
(d) Supplemental collection procedures. In addition
to the procedures described in §5.10 of this subchapter, the
department may notify appropriate credit bureaus or agencies if the
drawer or endorser fails to pay the face amount of a dishonored check
and the processing fee, or may refer the matter for criminal prosecution.