Dishonored checks, money orders, etc.
Houston Code of Ordinances § 2-139
in effectSec. 2-139. - Dishonored checks, money orders, etc.
(a) If any party attempts to pay any bill, charge, fee, tax, fine or other indebtedness or obligation to the city by check, money order or similar instrument, and if the instrument is dishonored, then:
(1) The bill, charge, fee, tax, fine or other indebtedness or obligation shall be deemed to remain unpaid; and
(2) An additional dishonored instrument fee equal to 80 percent of the maximum processing fee permitted by § 3.506 of the Texas Business and Commerce Code, or any successor statute, shall be payable to the city by the maker of such instrument in addition to the total amount of such bill, charges, fees, taxes, fines, or other indebtedness if the instrument is not referred to a collection agency under contract with the city. The current fee amount shall be stated for this provision in the city fee schedule. If the dishonored instrument is referred by the city to a collection agency under contract with the city, then the dishonored instrument fee shall be the collection fee specified in the contract or the maximum fee permitted by state law, whichever is less. The dishonored instrument fee shall be in addition to any other applicable charges including charges for late payment.
(b) This section does not apply in the case of checks, money orders or similar instruments dishonored in the course of any attempt to pay any bill, charge, fee, tax, fine or other indebtedness or obligation by a check, money order or similar instrument drawn on or issued by a financial institution which has had its funds frozen by involuntary or voluntary action, if such freezing occurs after the attempt to pay the bill, charge, fee, tax, fine or other indebtedness or obligation in such manner. In such event the party attempting such payment shall not be charged the dishonored instrument fee if the bill, charge, fee, tax, fine or other indebtedness or obligation is paid within ten days from the date such party has been mailed a written notice that payment on the check, money order or similar instrument has not been honored.
(Ord. No. 87-1318, § 2, 7-29-87; Ord. No. 92-179, § 2, 2-19-92; Ord. No. 05-99, § 2, 2-2-05; Ord. No. 2011-1168, § 13, 12-14-2011)
Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTVFIAF_DIV1GE_S2-139DICHMOORETFetched: 10/26/2026