N.J. Admin. Code § 5:30-9.6

Current through Register Vol. 56, No. 17, September 3, 2024

Section 5:30-9.6 - Preauthorized transactions

(a) Local units may enter into processing contracts to permit individual persons desiring to make electronic receipt transactions for any combination of a specified or unlimited period of time, or number of fixed or variable payments. This permits the local unit to initiate a transaction that electronically debits the person's bank account and deposit it in the local unit's bank account.

(b) The local unit may contract with a processor to manage and conduct such transactions.

(c) Agreements providing for preauthorized transactions shall be in writing with the person responsible for completing the transaction. Such agreement shall include the person assuming responsibility for appropriate penalties if the electronic receipt transaction is denied by the processor. Cancellation of such transactions shall be in writing and submitted to the local unit 30 days in advance of the cancellation.

(d) Notwithstanding the provisions of 5:30-9.4(c), the local unit may enter into contracts that provide for scheduling of transactions in such a way that take into account the requirements of transaction clearing systems.

N.J. Admin. Code § 5:30-9.6