Extra charge for bounced check

Our book keeper complains that we get quite a few bounced checks from lot owners who are paying yearly assement fees. Can we charge an extra fee for bad checks since the bank charges our HOA $4. for each one and it causes her extra work contacting the concerned lot owner. We are a Calif.HOA with over 1600 properties.Thank you, Phil Rivera

First the assessment is automatically late, so you can collect a fee on that, also, I would beleive you should be able to recover any bank fees charged to the association for the returned check. Below is part of the CA Civil code that deals with this.

Civil Code 1366.1 Excessive Fees Prohibited

An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.

As provided for in Civ.Code 1366(e), regular and special assessments are delinquent 15 days after they become due, unless the declaration provides a longer time period. If an assessment is delinquent, the association may recover all of the following:
1. A late charge not exceeding 10 percent of the delinquent assessment or $10.00, whichever is greater, unless the declaration specifies a late charge in a smaller amount.

2. Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney's fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.

3. Reasonable attorneys' fees and costs incurred in collecting the delinquent assessment.

Joe