HOA Fee for NSF Checks
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RETURNED CHECK FEE

Sometimes owners write checks to the association that "bounce." They are also called NSF (non-sufficient funds) checks or bad checks. There does not appear to be any legal requirement that a fee imposed by associations for NSF checks be in their collection policies.

Boards have authority to impose fees to defray costs incurred by their associations. (Civ. Code §5600.) By statute, there is a limit on the fees that can be charged for NSF checks. (Civ. Code §1719(a)(1).)

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