Sec. 5.62. Issuance of Duplicate Checks and Warrants.
(a) As used herein, the following definitions shall apply:
“Check” shall mean a draft drawn on a bank and payable upon demand prepared and issued by the Treasurer and, for certain authorized trust accounts, other issuing officers and employees.
“Warrant” shall mean an instrument prepared and issued by the City Controller at the request of an authorized City Agency which approves payment by the Treasurer of a sum of money to the person named on the instrument.
(b) A check or warrant shall be considered lost if such instrument has not been received by the payee within ten days after the date of mailing by the City.
(c) In the event a warrant issued by the City, and mailed or otherwise delivered to the payee, is lost or destroyed before it is presented for payment, the Controller may issue a replacement of such instrument provided that:
1. The Board, officer or employee that originally requested the warrant has filed with the Treasurer and with the Controller a timely and proper written order to stop the payment of the original warrant;
2. The Controller is satisfied that the original instrument has not been presented for payment;
3. The payee of the instrument shall have filed with the Controller a written affidavit or declaration under penalty of perjury setting forth the fact of the loss or destruction of the instrument, all material facts relative to its loss or destruction and a statement that the instrument has or has not been endorsed and if so, by whom. There shall be incorporated within the affidavit or declaration an agreement to deliver the original instrument to the Controller in the event it comes into the possession of the payee, and an indemnification agreement holding the City harmless for any loss incurred by reason of the transaction and the issuance of the replacement, except that where the instrument has not been received by the payee, the payee shall hold the City harmless only for any loss to the City arising from the payee’s failure to deliver the instrument to the City should the instrument come into its possession and control. The affidavit or declaration of agreement shall be approved by the Controller in writing. Thereafter, the approved affidavit or declaration of agreement shall be filed and become a part of the records of the Controller.
4. Whenever the lost or destroyed warrant is in an amount exceeding $3,000.00 and issued to a payee other than an officer or employee of the City, the payee shall, in addition to the affidavit or declaration, file a bond in the sum of 125% of the amount of the warrant, provided, however, that no bond shall be required if the payee states in its written affidavit or declaration that the original warrant has not been received by it; and provided further that the requirement of a bond may be waived by the Controller upon advisement in writing by the City Attorney that any delay occasioned by efforts to secure the bond could result in substantial liability to the City. The bond shall be approved as to form by the City Attorney and shall be executed by the payee, or if a surety bond, shall be executed by a corporation authorized to act as surety, and shall indemnify the City against any loss by reason of the issuance of the replacement instrument, including reasonable attorneys’ fees.
(d) In the event a check issued by the City, and mailed or otherwise delivered to the payee, is lost or destroyed before it is presented for payment, the Treasurer or other issuing officer or employee of the City may issue a replacement of such instrument provided that:
1. The Treasurer or other issuing officer or employee has filed a timely and proper stop-payment order with the bank upon which the check is drawn;
2. The Treasurer or other issuing officer or employee is satisfied that the original instrument has not been presented for payment;
3. The payee of the instrument shall have filed with the Treasurer or other issuing officer or employee a written affidavit or declaration and indemnification agreement as provided above with respect to the replacement of lost or destroyed warrants. The affidavit or declaration and agreement shall be approved by the Treasurer or other issuing officer or employee in writing. Thereafter, the approved affidavit or declaration of agreement shall be filed with and become a part of the records of the officer or employee.
Whenever all of the conditions set forth hereinabove have been satisfied, the Treasurer or other issuing officer or employee may void the check register entry for the original instrument, issue a new check and make such accounting adjustments as may be necessary to record the substitution of instruments.
(e) In the event a warrant or check is lost or destroyed before it is mailed or otherwise delivered to the payee, a replacement instrument may be issued by the Controller, Treasurer or other issuing officer or employee upon written request of the Board, officer or employee which requested the original instrument. Such request shall state the circumstances of the loss or destruction of the instrument, including a written affidavit or declaration under the penalty of perjury stating upon information or belief that such instrument has not left the City’s control. In such instance, the Controller, Treasurer or other issuing officer or employee shall ascertain, prior to issuing a replacement for any such instrument declared to be lost, that the original instrument has not been presented for payment and, if such lost instrument is a check, that a timely and proper written stop-payment order has been filed with the bank upon which the check is drawn.
SECTION HISTORY
Added by Ord. No. 151,330, Eff. 9-25-78.
Amended by: Subsecs. (c)3., (c)4. and (d)3., Ord. No. 178,175, Eff. 2-12-07.
