N.J. Admin. Code § 13:69D-1.29

Current through Register Vol. 56, No. 19, October 7, 2024

Section 13:69D-1.29 - Procedure for recording and collecting checks returned to the casino after deposit

(a) All dishonored checks returned by a bank ("returned checks") after deposit shall be returned directly to, and controlled by, accounting department employees and shall be maintained by check bank cashiers. Such employees shall have no incompatible functions.

(b) No person other than one licensed as a casino key employee or as a casino registered employee in a separate collection section within the accounting department, and one who has no incompatible functions may engage in efforts to collect returned checks except that an attorney-at-law representing a casino licensee may bring action for such collection. Any verbal or written communication with patrons regarding collection efforts shall be made with the full knowledge of the collection employees and shall be documented in a collection file.

1. Continuous records of all returned checks shall be maintained in a collection file by accounting department employees with no incompatible functions. Such records shall include, at a minimum, the following:

i. The date of the check;

ii. The name and address of the drawer of the check;

iii. The amount of the check;

iv. The date(s) the check was dishonored;

v. The check number; and

vi. The date(s) and amount(s) of any collections subsequently received on the returned check(s).

(c) A returned check may be immediately redeposited if there is sufficient reason to believe the check will be honored the second time. If a casino licensee determines that a Counter Check or Slot Counter Check was returned by a bank because the bank name, routing number, the patron's bank account number or the micro-encoding number contained on the check was incorrect due to a data entry error (for example, a misspelling, a wrong number, or a transposition of numbers), a check bank cashier may correct the erroneous entry and cause the check to be redeposited. Prior to correcting a check, the check bank cashier shall obtain written approval from a cage supervisor, which approval shall be maintained by the casino licensee. A casino licensee may not use this subsection to change the verified bank account on which the Counter Check or Slot Counter Check was originally drawn.

(d) Statements shall be sent to patrons, by accounting department employees with no incompatible functions, immediately upon initial receipt of a returned check or immediately upon receipt of a check returned for a second time if the check was immediately redeposited, and such statements shall include, but not be limited to, the following:

1. The name and address of the drawer;

2. The date of the check; and

3. The amount of the check.

(e) Patrons to whom statements are sent shall be advised of a return address and department to which replies shall be sent.

(f) Employees with no incompatible functions shall receive directly and shall initially record all collections.

(g) A record of all collection efforts shall be recorded and maintained by the collection area within the accounting department.

(h) After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes and charged to the casino licensee's allowance for uncollectible patrons' checks. A continuous trial balance of all uncollectible checks shall be maintained by employees of the accounting department. The continuous trial balance shall be adjusted for any subsequent collections.

N.J. Admin. Code § 13:69D-1.29