Ordinance Form To Recover Collection Costs printable pdf download

Ordinance Form To Recover Collection Costs

AN ORDINANCE

RELATING TO THE RECOVERY OF COLLECTION COSTS AS A PART OF

DELINQUENT

DEBTS

COLLECTED

PURSUANT

THE

SETOFF

DEBT

COLLECTION ACT

WHEREAS, the City/Town of _________________________ is a claimant agency as defined

in the Setoff Debt Collection Act, S.C. Code Ann. § 12-56-10, et seq. (the Act) and is therefore

entitled to utilize the procedures set out in the Act to collect delinquent debts owed to the

City/Town of _______________________________;

AND WHEREAS, “delinquent debt” is defined in the Act to include “collection costs, court

costs, fines, penalties, and interest which have accrued through contract, subrogation, tort,

operation of law, or any other legal theory regardless of whether there is an outstanding

judgment for that sum which is legally collectible and for which a collection effort has been or is

being made;”

AND WHEREAS, the City/Town of __________________________ has contracted with the

Municipal Association of South Carolina to submit claims on its behalf to the SC Department of

Revenue pursuant to the Act;

AND WHEREAS, the Municipal Association of South Carolina charges a fee for the services it

provides pursuant to the Act;

AND WHEREAS, the fee charged by the Municipal Association of South Carolina is a cost of

collection incurred by the City/Town of __________________________ that arises through

contract, and is therefore properly considered as a part of the delinquent debt owed to the

City/Town of _______________________________ as that term is defined in the Act;

AND WHEREAS, the City/Town of __________________________ also incurs internal costs

in preparing and transmitting information to the Municipal Association, which costs are also

collection costs that are a part of the delinquent debt owed to the City/Town of

_______________________________;

AND WHEREAS, the City/Town of __________________________ desires to recover its

internal costs of collection by charging a fee that will be added to the delinquent debt;

Ordinance Form To Recover Collection Costs