9-249. Warrants, substitute checks and vouchers; presentment; payment; registry; definitions

A. The treasurer of a city or town shall not pay any warrant, substitute check or voucher unless presented for payment by the person in whose favor it is drawn or the person's assignee, executor or administrator. When a warrant, substitute check or voucher on the treasurer is properly presented for payment, the treasurer shall pay it and write or stamp on the face of it " paid" and the date of payment and shall sign it. An electronic image of the original warrant provided by or made available by the servicing bank in a format approved by the treasurer of a city or town shall be deemed properly presented. If the treasurer cannot pay the warrant, substitute check or voucher for want of funds, the treasurer shall write or stamp on the face of it " not paid for want of funds" and the date of presentation and shall sign it, and, from that date until paid, the warrant, substitute check or voucher shall bear interest at a rate to be determined by the council, but in no case to exceed six per cent per year. The city or town and the servicing bank shall agree upon the method of delivery of the warrant, substitute check or voucher.

B. The treasurer shall keep a registry of warrants, substitute checks and vouchers presented for payment.

C. For the purposes of this article:

1. " Substitute check" means a paper reproduction of an original warrant created from an electronic image of the original warrant that:

(a) Contains an image of the front and back of the original check.

(b) Bears a magnetic ink character recognition line containing all of the information in the magnetic ink character recognition line of the original check.

(c) Conforms in paper stock, dimension and otherwise with generally applicable industry standards for substitute checks.

(d) Is suitable for automated processing in the same manner as the original warrant.

2. " Warrant" means an original warrant or an electronic image of an original warrant from which a substitute check may be created.