If the finance officer of a municipality states:

1. A. the manner in which a utility account or any unsecured account has been incurred;
2. B. the efforts made to collect the utility account or unsecured account and to locate the debtor;
3. C. that the utility account or unsecured account has been uncollectable for a period of more than four years; and
4. D. that in his opinion the utility account or unsecured account is uncollectable, the governing body of a municipality may, by resolution, remove the uncollectable utility account or unsecured account from the list of accounts receivable of the municipality.

History: 1953 Comp., § 14-36-7, enacted by Laws 1965, ch. 19, § 1.

ANNOTATIONS

This procedure enables a municipality to adjust its financial books so as to reflect a more favorable financial picture. Presumably, if the uncollectible accounts were later shown to be collectible in some manner, the rights of the municipality would not have been extinguished by the removal procedure and the municipality could proceed to collect from the debtor unless it was barred by the statute of limitations. 1970 Op. Att'y Gen. No. 70-88.