Alabama Code § 45-57-202

Special Reserve Fund for Payment of Losses Incurred from Worthless Checks and Other Instruments
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(a) The Russell County Commission shall establish from its general fund a special reserve fund of up to five thousand dollars ($5,000) per fiscal year in the budget of the Russell County Motor Vehicle License Commissioner to pay for losses incurred in accepting worthless or forged checks, drafts, negotiable instruments, money orders, or written order for money or its equivalent for the payment of ad valorem taxes or fees pursuant to the purchase of an automobile tag if the mistake or omission causing the loss was without the personal knowledge of the official. Upon the establishment of the fund, the commissioner shall be responsible for all documentation, maintenance, and accounting of the reserve account. The commissioner may deduct an amount equal to the uncollectible negotiable instrument against the reserve fund, provided that all legal remedies shall be pursued to collect the unpaid item. Upon the collection of an unpaid item, all funds received in payment shall be deposited into the reserve account. (b) The commissioner shall ensure that his or her employees exercise due care in performing their duties and make a diligent effort to correct the error, mistake, or omission and collect the amount subject to potential loss immediately upon becoming aware of the potential loss. This section shall not apply to a deliberate misuse or misappropriation of funds by the official or the clerks or employees of his or her office.

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