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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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