N.Y. Gen. Mun. Law § 85

§ 85. Service charge on returned checks. 1. The governing body of a\nmunicipal corporation may by resolution provide for the imposition of a\ncharge to be added to any account owing to the municipal corporation\nwhere a tendered payment of such account was dishonored by a bank or\ndepository institution.\n 2. Whenever the account owing to the municipal corporation is for a\ntax, special ad valorem levy or special assessment, the charge\nauthorized by the preceding subdivision shall be included on whatever\nlist of delinquent accounts is prepared for the enforcement of the lien.\n 3. Said charge shall be determined and set by resolution of the\ngoverning body, from time to time, as appropriate, but shall not exceed\nthe maximum charge for dishonored checks authorized under section 5-328\nof the general obligations law.\n 4. Any such service charge shall be collected in the same manner\nprescribed by law for the collection of the account for which the check\nwas tendered. In addition, such municipal corporation may require future\npayments to be tendered in cash or by certified or cashier's check.\n 5. For purposes of this section, the term "municipal corporation"\nshall mean a municipal corporation as defined in section two of this\nchapter and a school district.\n