Montana Attorney General Opinion 15-252

Opinion No. 252 County Treasurer-Taxes-Pa.yment by Check-Exchange or Float Charges -Banks and Banking. HELD: County treasurers, in accept- ing checks in payment of taxes, do M at their own risk. anll if procceds from collection thereof are insufficient he- cause of exchange or float charges, the county cannot be charged with defi- ciency or protest fees. State banks may charge exchange on outside check drawn in favor of county or city. Banks are not required to give credit OPI:\IO:\S OF THE A'l'TOHNEY GENEHAL 175 to county for amount of check deposited ('1' taken for collection until the money i" receh·ed. June 24, 1!)33. You IUl\'e submitted the following questions: "1. Can the county pay exchange 011 checks, if so, from what funds shall it be paid? "2. Can banks authorized to do busi- ness in the State of ~lontana charge exchange on outside checks drawn in favor of ~lontana counties or cities'!" "3. Can the county treasurer pa~' from county funds protest charges on bank items that are protested 'I "4. 'Vould it be permissihle for the banks to withhold credit to the county until outside items ha \'e been paid, or would it be permissible for the banks to credit items as they are received and at the end of the quarter when settlemen t is made for interest on (laily balance, to make an estimated deduction for the float items?" Answering your first question, we ha \'e held that the county treasurer has no authority to accept anything in pay- ment of taxes except money. (Opinion No. 221, this yolume). Acceptance of a check on a hank is at most only a con- ditiona I payment and taxes are !lot p:lid until the check is paid, (61 C, .J. fl6-l, Section 1242), If the proceeds from the collection of the check are insuffi- cient, the taxes are not paid in full. Since the county treasurer can only legally accept money in payment of taxes, he should not accept a check on a bank lInless it will be sufficient, when paid, to pay the taxes in full. It follows that the county cannot be reo quired to pay the eX{Jress or flon t charges on checks in the absence of some statute authorizing it. Answering your second question, 1 know of no law which pre\'ents ballks authorized to do business in the S'tate of ~lontana from charging exchan~e on outside checks drawn in favor of ~lon­ tana counties amI cities. It is ques- tionable whether the legislature could legally enact such a law but in the absence thereof such charge can be made. Since the county treasurer canllot nc- cept anything but money in payment of taxes, he accepts ehecks at his own peril and dsk and consequently the county, in the absence of statute, can- not be charged with protest fees and charges. I see no reason why a bank, if it wishes to do so, may not choose either alternative proposed in your question ::\'0. 4. The bank may follow such prac- tice as it follows with any other cns- tomer of the bank, or such other prac- tice as may be mutually agreed upon. In making a deduction for exchange or float items, the county trensurer is not released from any loss which the coun- ty mar have sustained by the accept- llllce of checks 01' the failure to collect taxes in fulL