Colombian Commercial Code - Decree 410 of 1971 - Book III - Of Commercial Property - Title III - Securities - Chapter V - Different species of Securities - Section I - Bill of Exchange - Subsection II - Presentation and Payment - The : Art 717 By: Art 733
COLOMBIAN COMMERCIAL CODE
Subsection II
Filing and payment
Article 717 .- The check is always payable on demand. Any notes to the contrary shall not on. The postdated check is payable to your presentation.
Article 718 .- Cheques should be presented for payment:
1. Within fifteen days from its date, if they are payable in the same place of issue;
2. Within a month, if they are payable in the same country of issue, but rather different from this;
3. Within three months, if they are issued a Latin American country and payable in any other country in Latin America, and
4. Within four months, if they are issued a Latin American country to be paid out of Latin America.
Article 720 .- The bank shall be required in their relations with
the drawer to cover the check until the remaining balance, except where
legally release him from that obligation. If available funds are insufficient to cover the total amount of the
check, the drawee shall give the holder the partial payment to the
balance.
Article 721 .- Even when the check has not been timely filed, the
drawee must pay if the drawer has sufficient funds or make the offer of
partial payment, provided it is lodged within six months following its
date.Article 722 .- Without just cause when the drawee refuses to pay a check or make an offer of partial payment warned in previous articles, shall pay the drawer, by way of penalty, a sum equivalent to 20% of the check or the available balance, without prejudice to the chase drawer common pathways for compensation for damages they incurred.
Article 723 .- The holder may refuse partial payment. If the holder accepts the partial payment, the drawee will check the consistency of the amount paid and return the title holder.
Article 724 .- The drawer may revoke the check, under his responsibility, but have not passed the deadlines for submission, without prejudice to Article 742. Revocation notified the bank, it can not pay the check.
Article 725 .- The death or incapacity supervening the drawer to the drawee not relieve the obligation to pay the check.
Article 726 .- (Bankruptcy, contest) *, judicial or
administrative settlement of the drawer, will force the left to refuse
to pay after they have been publications in such cases provided by law.
* Mandatory Settlement.
Article 727 .- The annotation to the drawee or the clearing house
put on the check, having been timely filed and paid in full or in part,
have the effect of the protest.
Article 728 .- Any bank will be forced to return to the drawer along with your statement, the original checks you have paid.
Article 729 .- The exchange action against the drawer and their
guarantors expires because it was not presented and protested the check
in time, if during the period for lodging the drawer had sufficient
funds in the hands of the drawee, and for reasons not attributable to
the drawer, the check made paid.
The exchange action against other signatories expires for the simple failure to file or timely protest.
Article 730 .- Actions arising from the checks prescribed
currency: Those of the last holder, in six months from the presentation,
those of the endorsers and guarantors in the same term from the day
following that on paying the check.
Article 731 .- The drawer of a check presented in time and not
paid because of her pay to the holder as a penalty, 20% of the amount of
the check, without prejudice to such holder for common pathways to
pursue compensation for damages it causes.
Article 732 .- Any bank will be liable to a depositor by the
payment of a check that make false or whose amount has been increased,
unless the depositor to notify the bank within three months after it
returned the check, the title was false or that the amount it had
increased.
If the forgery or alteration is traced to the fault of the drawer, the bank is relieved of responsibility.
Article 733 .- The owner of a check which has lost one or more
forms and has not given timely notice to the bank, payment may object
only if the alteration or forgery are notorious.
Comentarios
SUBMISSION AND PAYMENT
Regarding the check presentment and payment will always be payable on demand, so any point otherwise determined shall be remiss. All post dated checks and presented for payment before the specified day of issue shall be payable on the day of their presentation.
The holder or beneficiary must submit a check within the following periods as from the date of issuance:
1) Within fifteen days from its date, if they are paid at the same place of issue.
2) Within a month, if they are payable in the same country of issue, but rather different from this.
3) Within three months, if they are issued in a Latin American country and payable in any other country in Latin America
4) Within four months, were issued in a Latin American country to be paid outside of Latin America.
When the drawer's checking account lacks funds to meet the full payment, the bank of the person issuing the check will be required to cover the check until the remaining balance in the account at the time of submission to payment, is say, offer a partial payment, except legal provision to release him from that obligation, the holder may refuse partial payment, but if you choose to accept the drawee will check the consistency of the amount paid and the title returned to the holder.
The order not to pay a check has no effect within the deadline unless theft or loss thereof.
Even though the check has not been submitted in time, the drawee must pay if the drawer has sufficient funds or make a partial tender offer, provided it is submitted within six months following their date.
To make valid a check more than six months of development and not yet presented for payment, the drawer simply authorize your payment date inscribing the date on the back.
The drawer of a check presented in time and not paid at fault will pay the holder, as sanction, 20% of the check amount, notwithstanding that such holder prosecuted for common pathways compensation for damages incurred by him.
Conclusion:
The title-check as a submission has value different from that of other securities and therefore is e-commerce code which tells us how is the process and what requirements are needed for the check to be valid. By reading these articles we can see that the check for being a negotiable instrument with special features is one of the aspects most used by its ability to be made payable and places where you can make the payment
It is also a document to be drawn on a bank or credit institution that has funds available course of the drawer, is a consent agreement is entitled to dispose of those funds by check.
As we understand it is a security whereby a subject called spinner, that is who has a checking account orders one to a bank called rotated, to pay a certain sum of money to the order of a third called beneficiary.
Drawer or drawer: Is the person issuing the check and payment orders to the bank.
Librado or Rotated: The bank or credit institution which is ordered to pay the check to the drawer has funds.
Holder, Borrower or Beneficiary: The person who owns the check (payee is the first fork).
He concluded that the check is a payment, not a promise to pay as the case of the note, so it is easy to understand then it follows to be executed by the bank to the presentation of the document with the detailed rules laid down for each type of check.
Such regulations have established different types of terms related to both the holder timely made to the drawee bank for check cashing and in relation to limitation periods of collection actions arising from this special instrument.
Thus, the first point, it should be noted that the burden of care have holders of the checks related to the timely submission of the same against the bank for payment. In this regard Article 718 of the Commercial Code provides for these terms of presentation as well:
"1 ° Within fifteen days from its date, if they are paid at the same place of issue;
"2 ° In a month, if they are payable in the same country of issue, but rather different from this;
"3 ° In three months, if they are issued in a Latin American country and payable in any other country in Latin America, and
"4 ° Within four months, if they are issued in a Latin American country to be paid outside of Latin America."
Once it is established that the check in his capacity as title value has met all general and special requirements established for this, you should begin to analyze what are the mechanisms and forms of presentation and payment:
Under Article 717 of the Commercial Code has given to us to know that the check is always payable on demand and any entry to the contrary shall be deemed not start and that the post-dated check is payable to its simple presentation.
In what may be observed in this article it is necessary to enter a little break down the topic of post-dated checks that are recognized by common use within the financial systems of Colombian society, since analyzing the nature of this is a title that has the quality of being paid on a date later than the date it was turned by the bank account holder, considering that the holder of that account when creating the title value, it is assumed that this not have at the time with the resources to realize the obligation to pay it supports. Well once understood the purpose of this kind of background check and examining what we set out this article we found that this contradicts himself, because in the same speech that just simply on the postdated check to be Perform the release of the sum mentioned in the same account from which the check was rotated, meaning that although the conditional check has complete validity as any other because no law contrary if it is notable that in the same article provides the check is always payable on demand ie with its simple presentation and any annotation otherwise will not start so the postscript conditioning check simply will not have the same validity and can be paid on the date is presented for this purpose with the bank which at any time may refuse to pay.
Once understood regarding the conditions for the filing and payment of the check in his title role value must highlight that there are some terms established in the commercial code to materialize the payment of checks and debiting of these bank account to support this title. within Article 718 of the Commercial Code states that all checks must be presented for payment within the following terms depending on the place of issue of the check, failing which the future be declared a forfeiture exchange for action:
. Fifteen (15) days from the date of creation of check as long as this is payable in the same place of issue.
. A month (1) if the check is payable within the country which was issued but that payment is made in a different city.
. Three months (3) if the check is issued within a Latin American country and payment is made in another country that is part of Latin America.
. Four months (4), if the check is issued within Latin America and will be payable within a country that is not in Latin America.
It should be a small caveat that in due course will expand within this document for though these terms are set the check is payable upon presentation for payment to a term of six months (6).
Another aspect to which we refer the document under study is the presentation of the check to a "clearing house", but for this it is necessary to break down the concept come clearinghouse as for my personal experience is the first time in which I have rose with this term:
According to the definitions found within the vast encyclopedia of economics I take the audacity to take one of the definition which we infer that this is simply an organization that records, home and ensures transactions in futures and options. Clearing Houses are the key to the financial integrity of the futures and options exchanges and eliminate the need for operators to know for sure who the other contracting parties. Also known as Compensation Association and, if it is organized in this way, as Clearing Company.
Moving on we established the Commercial Code in its Article 719 in relation to the presentation of the check to a clearing house, means that shall have the same effect as if the same be submitted directly to the drawee (bank)
That is to be understood that within our economic means the check is simply a payment mechanism and that this should be presented in a short period of time so if you prefer the title holder can present it to the bank in which the possession of his personal bank account for this entity is responsible for conducting the presentation of the check to a clearinghouse that ultimately has been the Central Bank who has this power and this may collect before the bank where the deposit money is represented on the check.
One of the most controversial and which has no application in the exercise of the presentation for payment of the check is establishing within the Article 720 of the Commercial Code which expressly speaks obligation that exists within the relationship established by the bank to the drawer to pay the amount stated on the check which is common to find that the bank refuses to pay the amount of the check for lack of a bank account within the monetary amount sufficient to cover the discount bank account balance and even respaldándose in decrees issued by the Banking Superintendency. If we stick to the established in the article we analyzed this practice as usual can be configured as an attitude of the prejudicial effect against the holder of the check, considering that the drawee (bank) is obliged to make payment of the amount of the check and if so make partial payment up to the amount that is available in the bank account to which the relevant evidence is left implicit in the title and it should return to its holder subject to the same reject partial payment thereof as is prescribed in Article 723 and for any type of regulation that violates this mandate code, this may stem from the state agency that is competent but while this has not the quality of law enforcement take precedence hierarchically as expressed within the commercial code.
That is why sanctions have been established by the legislature to force full compliance with its standards as found in Article 722 of the code under analysis, in this article we are made to specify the punitive nature of this rule in which provides that the drawee bank is acting in total and absolute obligation of funds prior existence once presented the check to make payment thereof or otherwise make the offer of partial payment, considering that to refrain from payment thereof will be immersed in an attitude detrimental to the drawer, so the bank must cancel a penalty equal to twenty percent (20%) of the amount of the check presentation object lest the drawer to start legal action the drawee assume the damage caused by the nonpayment of the title.
Returning to the statement in advance within this document I would make a more open on the terms of reference for the purposes of presentation of the check payment. Under Article 721 of the Commercial Code provides that even if the check has not been presented for payment within the time stated on previous occasions, the drawee is obligated to pay if sufficient funds or failing to make partial payment of the check amount, provided that the date of issuance not exceeding six months (6).
If you take this article and is interpreted loosely be said that the legislature is encouraging passivity handing the title holder of the terms so that this makes the presentation of the check, but not, as the lack of presentation for the payment of the check within the terms expressed in Article 718 is configured as a negative behavior in line with Article 729 of the same code can be speak punishable holder of this passivity check expiration applying the exchange action against the drawer as if the holder made extemporaneously presentation for payment of title and there are no funds for payment immediately the drawee can escape legal action seeking to apply the expiration of the exchange action.
Notably, the end of which we make inferences six months 721 is aimed specifically where the check was presented within its term but there were no funds for payment and not the requesting of protest before the drawee to which within this term can present the check to the bank to have the luck to have existence of balance in the account to cover the total or partial amount of the check.
Another phenomenon with which we can find within this subject, it may be that at the time the check is presented for payment there is an order of default so as provisions of section 724 of the Code the spinner The title is in full autonomy to issue a warrant under his full responsibility where revoke the payment order of the security to the holder who is obviously within this order that is unilateral as established payment must be a written order of nature in which the bank is notified will recall from the drawer in which you should not express any reasoning to justify the order.
To expand a bit more these precepts of payment is not necessary to go a little further into the circumstances that justify the non-payment of the check, which is why at first measure should clarify that first step can not justify not payment of a check by the death of one who was his drawer, considering that the mere presentation of the title is claimed the spinner will make payment of the check, but on the other hand we find that there are certain reasons that justify not title as payment is fully discriminated in Article 726 of the Commercial Code in which speech should be a compulsory liquidation, administration, these forced the left to refuse payment since been made for such publications cases provided by law.
One of the most common practices by banks is the protest, which is no more than a manifestation by the drawee who is usually reflected in the back of the check or on a piece of paper attached thereto in which establishes the nonpayment or partial payment of the security, which is accompanied by a coincidence, in my personal concept this is just totally cumbersome procedure that was inherited from the bill of exchange, but by law is necessary.
Similarly another action that has immersed the check in his title as the return value is the title once it has been paid, ie according to the provisions of Article 728 of the code the bank is obliged to return the value to the spinner title once the payment thereof together with the monthly statement from your bank account.
Expiration: Although he had raised the issue in the present analysis is necessary to expand a little more this point, given its importance in the Article 729 of the Commercial Code objectively defined as the forfeiture sanction that applies to the holder of the check for that person's conduct leaving overcome passive conceived within the terms of Article 718 of the same code by which the exchange action can not be effective, given that it is assumed that within the above terms drawer had the resources to pay the title for the value of the amount, while leaving without effect any protest is made in the event of non-payment, in turn the law grants the holder the end of June months for grilling by issues can cash the check before it can declare the limitation for exchange.
The limitation for exchange: It can be inferred as expressed in the Code specifically provides in Article 730 that the last holder has a period of six months (6) from which is made the first presentation on the bench
As in the case of the drawee or bank, the drawer has immersed certain obligations that stands between the obligation to ensure payment of Title counting the resources to support the full amount of the check issued for that reason for this also there a penalty for non-payment which is established in Article 731 which makes it clear that in case of non-payment because the title of the drawer shall indemnify the holder to twenty percent (20%) of the amount of check failing which such holder pursue compensation for the prejudice caused this nonpayment.
In turn, banks also have a number of responsibilities that must take when making the payment of the security, for example when it is false or its amount is altered, in turn the bank is exonerated responsibilities When two specific cases:
When falsehood or alteration due to the fault of the drawer
If the holder of the account, depositing or drawer fails to notify the bank within the legal time that the title was false or that the amount had increased under the bank granted the term of three months (3) to effect such notice as the bank along with the monthly statement refers to the account titled copy of the financial flows and returns the title value in this specific case is false or is altered.
THE CHECK
SUBMISSION AND PAYMENT
For the check may be required, just the mere filing, if the check indicates a date on which to charge, this will be nonexistent, although trade is used backdated in order that the not currently have the resources to pay off a check, it will put a date subsequent to the date this was issued.
Checks have deadlines or terms that the holder has submitted to the bank for payment, if these terms are not met exclude the possibility of bringing the exchange, as it presented the expiration of this. The terms on which the checks are presented for payment are:
1) Within fifteen days from its date, if they are paid at the same place of issue;
2) Within a month, if they are payable in the same country of issue, but rather different from this;
3) Within three months, if they are issued in a Latin American country and payable in any other country in Latin America, and
4) Within four months, if they are issued in a Latin American country to be paid outside of Latin America.
Clearinghouse are places where banks swap operations performed their checks they receive allocations of customers and must be paid by the drawee bank. This means that the presentation of a check clearing house will have the same equivalence check directly to the bank.
In the event that there is balance in the bank account where you went to cash the check is not enough, the bank is required to provide partial payment, meaning that the bank must pay to the funds that are available in account.
Even when it has passed or expired time to present the check, the bank is obliged to pay as long as it is done within 6 months, and if the account of the drawer of the check has funds available.
In the event that the bank or the drawee without just cause refuses to pay the check, whether there is enough money to pay for it, will incur a penalty, to be paid to the drawer of a sum of 20% of value of the check and you must compensate for the damages caused.
When the bank is going to make partial payment of a check, the recipient may refuse to receive it, but if you receive partial payment, the bank must record on the check the value you pay and return the check.
The bank may refuse payment of a check at the same drawer ordering the revocation of this, but this will be under the responsibility of the drawer. The bank also will deny payment on the check when the drawer is in bankruptcy, insolvency, liquidation or administration, as long as you have made the appropriate publications.
Although the drawer dies or is declared incompetent, the bank is obliged to make payment of the check. So if the check is presented within 6 months following the date, while funding the bank must pay the check.
The protest of checks to the drawee makes you have a notation of the date on which the check was presented, and that this was not paid or partially paid.
Once the check has been paid the bank is obliged to return the original check to the drawer and bank statements of your account.
The exchange action against the drawer, its guarantors and other signatories, expires when not done the check presentation in terms of Article 718 of the Commercial Code or when the protest is not made timely.
To present the exchange action arising prescribe a check to the fork in 6 months from the filing; endorsers and guarantors but the same six months from the day following that on which they paid the check.
If the non-payment of a check that was presented in time was because the drawer, will sanction the sum of 20% of the value of the check to the holder, in addition to compensation for damage incurred by him.
If the check has alterations in its amount or this is false, the bank is exempt from liability as long as the drawer within 3 months after the return of the check to the bank notified about the failure. If the failure was the fault of the drawer, just as the bank will be relieved of liability. Likewise, if you lose one or more forms of the checkbook and not given timely notice to the bank, the owner of the checkbook payment may object if they be notorious forgery or alteration.
To ensure the safety and rights of its users, and generally to holders of checks, banks have established some rules, for that reason, the checks can only be delivered or issued on forms developed or approved by the banks.
As such, the forms of checks will be printed by banks under its responsibility and necessarily contain the name of the drawee bank and a consecutive number that identifies them fully.
So the checks are issued on forms other than those authorized by the bank not produce title-value effects.
When exceptionally authorize banks to their customers to develop special forms of checks will be signed a document stating clearly the liability created by the cuentacorrientista, requirements and safety factors that should fill the checks, and particularly the need to include printing the name of the drawee and the identification number of checks, for this effect is brought to each individual customer and consecutive numbering, so identifying undoubtedly checks.
If that is the case, the bank will use to process your checks to identify magnetic characters both the bank and the client or any of them, these characters will be printed by the bank necessarily, although mediates contract for the development of special checkbooks. The check issued or transferred without sufficient funding or who after issuing it giveth unjustified order of default, shall be sentenced to one to three years, provided that the act does not set offense punishable by more.
The penalty shall be increased by half if the amount of the check is greater than $ 5'385 .380.
The cease prosecution by payment of the check before the court ruling.
The issuance or transfer of post-dated check or given as security does not result in prosecution.
No criminal action may be initiated from the draft or transfer check, if six months have elapsed from the date of creation thereof without being presented for payment. Conclusion The check is a negotiable instrument of great importance in the economy of a society as it would be difficult without concrete many commercial transactions of great importance, so it should be given to proper use and avoid us suffer discomfort and not finish by an instrument that is designed to benefit the community.
• The liberator or the drawer : The person issuing the check and payment orders to the bank.
• Librado or Rotated: The bank or credit institution which is ordered to pay the check to the drawer has funds.
• The possessor or Beneficiary: The person who owns the check
The check is always payable at sight, so any annotation determines otherwise be ignored.
The bank will always be required to cover the check until the balance stipulate the drawer, unless the background check has not.
Now if the check does not have sufficient funds to cover the total, can be agreed partial payment provided that within six months following their date.
When the drawer is just cause to refuse to pay a check or may not make the offer of partial payment, the drawer will pay a penalty equal to 20% money this is when no funds checks.
The order not to pay a check has no effect within the deadline unless theft or loss thereof
To make valid a check more than six months of development and not yet presented for payment, the drawer simply authorize your payment date inscribing the date on the back.
the bank be liable when a fake check or pay the amount exceeds that stipulated the drawer, provided that the depositor fails to notify the bank within three months after the check was returned, but if the alteration or falsity is caused by the drawer bank is relieved of all liability.
in cases where a check is lost or stolen one or more of your forms will need to provide timely notice to the bank to stop those checks without effects.
Advantages of using check
1. Being an instrument or means of payment, replacing cash payments, whether coins or banknotes.
1. Avoid handling large sums of cash.
2. can concentrate large amounts of money in banks.
One would think that a security check is disadvantageous in the short period of time in which prescribe the exchange action which is six months, but not the opposite which gives a peak, guarantees. It makes it more effective in both the parties to the drawee to the drawer because there would not be valid so long to make that title does not generate value and acts in bad faith, as in other securities because the time limitation is widespread many holders think of the possibility of passing the time until the requirement for greater interests and owe the obligation.
The check provides a broad guarantees from the perspective that this can be appreciated, since as stated in Article 720 and 721 of the Commercial Code provides that the drawee shall pay the check if you have sufficient funds of the drawer and that this should cover the title up to the amount of available credit, gives us to understand that just as you can have, can not have enough funds to clean up the debt. But in the case concerning the bank may make a partial tender offer, and that such an offer may accept or reject the fork. Similarly the drawee shall justify the payment or non-payment of the check because otherwise paid to the drawer, by way of penalty, a sum equivalent to 20% of the amount of the check or the available balance, but also the possibility of that is free of such penalty to the holder of the title, because if this is presented by the drawer but not paid on time because of the same abandon the holder, as sanction, 20% of the amount of the check. They are spacious guarantees that this title gives value both the holder and its depositor and you would think that any obligation or other security with the death of the creditor or the holder of the title ends that obligation, but in this title value not. Since in the regulation of the check in Article 725 of the Commercial Code provides that supervening death or disability of the drawer to the drawee not exempt from the obligation to pay the check.
The check is payable at the time of filing the drawee. As receivable that is, the payment of the check should be done precisely against delivery.
Liability of the drawer: The drawer is primarily responsible for the payment of the check. So check in the direct exchange action is brought against the drawer and guarantors (equates to the drawer and the acceptor of a bill of exchange) and back action against the endorsers and their guarantors. The drawee (lender) has responsibility under the document because never formalized acceptance, unlike the draft.
The drawer of a check presented in time and that is not paid because he responsible, is liable for damages suffered by the holder.
Liability of drawee: The lending institution that authorizes a person is obliged to issue checks to cover up the amount of the sums which have available the drawer. When the institution refuses without just cause to pay a check must compensate the drawer of damages.
It is said that a check bounced when no funding.
It is also a document to be drawn on a bank or credit institution that has funds available course of the drawer is a consent agreement is entitled to dispose of those funds by check.
As we understand it is a security whereby a subject called spinner, that is who a checking account orders one to a bank has called rotated, to pay a certain sum of money to the order of a third called beneficiary.
Drawer or drawer: Is the person issuing the check and payment orders to the bank.
Librado or Rotated: The bank or credit institution which is ordered to pay the check to the drawer has funds.
Holder, Borrower or Beneficiary: The person who owns the check (payee is the first fork).
He concluded that the check is a payment, not a promise to pay as the case of the note, so it is easy to understand then it follows to be executed by the bank to the presentation of the document with the detailed rules laid down for each type of check.
Such regulations have established different types of terms related to both the holder timely made to the drawee bank for check cashing and in relation to limitation periods of collection actions arising from this special instrument.
Thus, the first point, it should be noted that the burden of care have holders of the checks related to the timely submission of the same against the bank for payment. In this regard Article 718 of the Commercial Code provides for these terms of presentation as well:
"1 ° within fifteen days from its date, if they are paid at the same place of issue;
"2 ° in a month, if they are payable in the same country of issue, but rather different from this;
"3 ° In three months, if they are issued in a Latin American country and payable in any other country in Latin America, and
"4 ° within four months, if they are issued in a Latin American country to be paid outside of Latin America."
Article 717 of our commercial code tells us that the securities must be paid at sight, ie it is necessary to submit the title for which payment is made. And when a postdated check, and if the drawer of the check has deposits the bank cashes it at the time of submission even if you have a marginal note about the term of payment.
Checks are a time to be charged, this time varies according to where the check is issued and which to make payment. This period varies from 15 days to four months.
The delivered but has to pay the obligation, shall give the holder of the check and a partial payment if the offer does not, must pay up to 20% as penalty and compensation for damages that may have caused by not paying the required time . Is this a way of enforcing the title value in question. And so pressed for payment is done correctly and efficiently.
With regard to Article 729 expiry mentioned this figure against the drawer and guarantor when not required to pay the duty within the stipulated time, but only expires against them, the obligation has not expired. Against the other expires when no manifestation of the requirement to pay.
And on a prescription exists a term of six months from the presentation of the check to the last holder of the check and prescribed to the endorsers and guarantors when payment is made.
the check can be issued: Bearer: Anyone who has this kind of check is entitled to collect. Be careful: if you lose it and whoever it takes, you can not claim anything.
Nominative: In this case, only the person or company whose name appears on the check may charge you.
However, it is possible to transfer the right to charge a third party through what is called the "endorsement". To endorse a check, the payee in the document type the name of another person, who becomes the new beneficiary, and signs. Nominative Checks may include the clause "to order", which expressly permits or endorsement clause "not to order" that prevents transmission by endorsement.
Cross Cheque: We cross a check when you draw two parallel diagonal lines on the obverse. This can only be charged in a particular bank, so that it in turn waged copper in the body. Checks can "cross over" either by the drawer or by the holder.
Note: If you are a customer of the entity must pay (drawee), you can usually charge a crossed check in cash.
Cheque "to pay into account": If a check has written the words "payable in account" means that money can not be withdrawn in cash, but will have to be entered in a bank account. This is done to reduce the risk in case of loss or theft.
Cross checks and checks to pay into account easier to identify who the cobra.
1. Within fifteen days of its date, if they are paid at the same place of issue;
2. Within a month, if payable in the country of issuance, but rather different from this;
3. Within three months, if issued a Latin American country and payable in any other country in Latin America, and
4. Within four months, if issued a Latin American country in Latin America to be paid.
In other aspects should be understood that in the time the check is presented for payment made to the bank, it is obligated to pay the corresponding amount if there is the necessary background for the cancellation of the same, if no then will be required to settle the obligation up to the amount that is to say, to the extent that funds reach.
In Article 722 and found that when he refuses without just cause to pay the drawee to the drawer pay by way of penalty, a sum equivalent to 20% of the amount of the check or the available balance, not forgetting to be responsible independent action for damages that you want to assert.
Where is the holder who reject the partial payment will have no more effect than the nature of their deployment action if the holder accepts partial payment, the drawee will check the consistency of the amount paid and return the title the holder. As expressed in Article 723.
In other connotations is commenting that the death or disability of the obligor to pay the check does not excuse you from your responsibility for payment, and that the purpose of this provision is treated as legal certainty.
I think the content of the provisions discussed here are clear and self-explanatory as some curious things the bank's responsibility to check fraud but nothing that is not understandable.
spinner orders a bank called rotated or drawee paying
a certain sum of money to the order of a third
named beneficiary entedera always check as payable on demand, that chueque-dated payment shall be understood to provide them.
the check must be presented at time of payment, within 15 days following the date to cash simepre and when due at the same place of issue.
if they are from the same country will be within a month, to make the check and if exigle are held in other Latin American countries shall become due within the next 3 months.
when available If funds are not sufficient to cover the full amount of the check, the drawee shall give the holder the partial payment balanza.El holder may refuse partial payment. If the owner accepts the partial payment, the drawee check the compatibility of the amount paid and return the defending champions, the owner's death that appear in chueque disclaims no liability to pay the obligation in cheque.La nonpayment of traveler's check exchange action give the holder to require in addition to the amount, the payment of 25% of the value of the check by way of penalty and compensation for damages that may try for common pathways
The check is a negotiable instrument of great importance in the economy of a society as it would be difficult without concrete many commercial transactions of great importance, so it should be given to proper use and avoid us discomfort and not end up hurt by an instrument that is designed to benefit the community.
It is a document that must be fought against a bank or a credit institution that has funds available to the drawer and pursuant to an express or implied agreement by which the drawer is entitled to dispose of those funds by check.
Drawer or drawer: The person issuing the check and payment orders to the bank.
Librado or Rotated: The bank or credit institution which is ordered to pay the check to the drawer has funds.
As said the check is a payment, not a promise to pay the note as the case, then it appears to be run by the bank to the presentation of the document with the detailed rules for each type of check.
Persons involved in the check:
a) Spinner. who gives the order to the bank to make payment paa
b) Rotated. It's who is ordered to pay (the bank)
c) The beneficiary. Is receiving payment or for whom it was done this
Requirements:
• The command to do the drawer for the bank to pay the sum of money
• The name of the drawee (the bank)
• The order will be payable to the beneficiary
• Place and date of issue
• Amount of money that is set on the check
• It has to be done by the format that has the same (stubs) of the same bank
• Must have the drawer an account with the bank
• Funds that account has rotated so that the payment can be made
• Must show the check for payment
When you lack any of these requirements the check is null and void.
The payment of the check:
• The check must be presented for payment
• It can occur within 15 days following the date if paid in place of issue
• Can be filed within fifteen days from its date, if they are payable in the same place of issue;
• within a month, if payable in the country of issuance, but rather different from this;
• In three months, if issued a Latin American country and payable in any other country in Latin America, and
• In four months, if issued a Latin American country in Latin America to be paid.
When the check has not been presented in appropriate cases the debtor you must pay if you have sufficient funds, and the death of the holder does not relieve the drawee to pay the check still has to pay
In the check clearing house performs the same role of the drawee, and when they are going to charge the balance is not sufficient to pay the drawee must give the holder the partial payment of the balance, it may revoke the payment of check and must notify the bank not to make payment
The exchange action against the drawer and guarantors expired because it was not presented and protested the check in time, whether during the presentation of the drawer had sufficient funds in the hands of the drawee, and for reasons not attributable to the drawer, the check was paid . The exchange action against the other signatories expires by the simple failure to file or timely claim
The drawer of a check presented in time and not paid because of him made to the holder as a penalty, 20% of the check amount, subject to said support for common ways to obtain compensation for the damage caused.
Drawer or drawer: The person issuing the check and payment orders to the bank.
Librado or Rotated: The bank or credit institution which is ordered to pay the check to the drawer has funds.
Holder, Borrower or Beneficiary: The person who owns the check (payee is the first fork). As said the check is a payment, not a promise to pay the note as the case, then it appears to be run by the bank to present the document to the procedures established for each type of check.
Consider the declaration and payment of the check, this should always be paid to the eye, so any annotation determines otherwise be ignored. Those dated checks and presented for payment before the specified day of issue shall be payable on the day of their presentation.
The holder or beneficiary must submit a check within the following periods as from the date of issuance:
1) Within fifteen days from its date, if they are paid at the same place of issue.
2) Within a month, if they are payable in the same country of issue, but rather different from this.
3) Within three months, if they are issued in a Latin American country and payable in any other country in Latin America
4) Within four months, were issued in a Latin American country to be paid outside of Latin America.
When the drawer's checking account lacks funds to meet the full payment, the bank of the person issuing the check will be required to cover the check until the remaining balance in the account at the time of submission to payment, is say, offer a partial payment, except legal provision to release him from that obligation, the holder may refuse partial payment, but if you choose to accept the drawee will check the consistency of the amount paid and the title returned to the holder.
The order not to pay a check has no effect within the deadline except for loss or theft of the same, even though the check has not been submitted in time, the drawee must pay if the drawer has sufficient funds or make offer partial payment upon presentation within six months following their date.
To make valid a check more than six months of development and not yet presented for payment, the drawer simply authorize your payment date inscribing the date on the back.
The payment of the check or order for the payment of such check has a date to be timely filed by someone who has the title, there is talk that simply presented the check by the drawee to enforce this title should be paid without any problems or objection.
The terms provided by law to enforce payment of these checks are: first have fifteen days after the expiration of this check to make payment if the check is local, second, if payable in the country somewhere (same country) will have one month to submit and finally if payable in a different country will have four months for submission.
When presented for payment delivered the check to the bank concerned, it must pay in full, but if there are insufficient funds to cancel, the drawer is obliged to offer a partial payment the drawee, the drawee is free choice of whether or not to accept this offer by the drawer. The check is not paid and this happens because the drawer will have a penalty.
The drawer to be in a state of bankruptcy or liquidation period is in judicial or administrative, the Bank will not make the payment of the check, the drawer may make the protest of the check, which is a procedure by which the holder of title, which aims to take the credit in the absence of the required payment, is directed to an appropriate official or agency to so certify, in other words, the protest bank note or seal is standing on its back check or a sheet attached to it, which expresses no full payment or partial payment.
The banks are always required to return to the drawer original checks have been paid.
"Checks should be presented for payment:
1. Within fifteen days from its date, if they are paid at the same place of issue;
2. Within a month, if they are payable in the same country of issue, but rather different from this;
3. Within three months, if they are issued in a Latin American country and payable in any other country in Latin America, and
4. Within four months, if they are issued in a Latin American country to be paid outside of Latin America. "
The result of the untimely submission of checks under the terms stated expiration is cambiaria1 action, that is, the inability of the exchange law born as the payment obligation is subject to the condition that the holder of this title for payment and protest in time.
Even if the check has not been submitted in time, the drawee must pay if the drawer has sufficient funds or make the offer of partial payment upon presentation within six months following the date".
This item is no longer refers to the expiration of the exchange action but refers to the bank's obligation to pay the check if it is submitted within six months of its date. "During this term - which certainly exceeds that of the submission, Article 718 - the holder may carry as many times you want the check to the bank to obtain payment window, or file through your checking account, and if funds it is the duty of the drawee to pay or make an offer of partial payment, until the available balance "3
Let subjects normally involved:
The drawer: the person or company that issued and signed the check.
The drawee is the bank that pays the amount of the check.
The holder or beneficiary: the person or company who can cash the check. Sometimes there may also be an endorser and / or guarantor.
Definition
A check is a document used as means of payment by which one person (the drawer) instructs a bank (the drawee) to pay a certain amount of money to another individual or company (the payee or holder). The drawer can also be the beneficiary, as when one uses a check to withdraw money from their own.
Methods of checking
Personal check: the one drawn on the current account of a natural or legal person (company). A current account holders are given a personalized book that can use paper checks as payment, and which contain:
The check number and identification code.
The Account Code (CCC) that identifies the account.
The use of personal check as payment has declined with the emergence of other more comfortable, like credit cards and online banking, but mainly because of the drawbacks that hinder their recovery.
To make the payment of a check, it is necessary that the drawer has the necessary funds in the entity listed as delivered. That is, if someone pays with a personal check, you have no guarantee of being able to cash it. If the drawer does not have enough money in your account, the bank does not pay and you will have to claim payment. Entities also charge high fees for each check returned for insufficient funds, in Spain, these commissions (typically 2% -3% of the value of the check, with a minimum of 9 euros) are not paid who placed the check, but which is presented for collection.
Finally we should mention the security related problems. There is the possibility of fraud by forgery or alteration of checks, which can harm both to the issuer and the person who intends to charge.
Certified check: is a form of personal check in which the bank has to pay (the drawee) ensures that funds and therefore will be paid. To ensure the operation, the bank retains the amount of the payer's account, in addition to the fee usually charged for that service. The bank noted in the check word formed, certificate or other similar terms and signs.
Many creditors require conformed check payments.
Cheque: is one in which the drawer (the one signing the check) is the entity that must pay bank (the drawee). You do not have a checking account in the state to purchase this service in case you need to use it as a means of payment.
Check against the account of the Bank of Spain is one in which the drawee is the Bank of Spain. Normally the drawer is a credit institution. These last two types, like the check forming, reinforcing document guarantees.
Cheque-stop: also called cashier's check is one issued by a bank to its own premises. Actually it is not a means of payment, but a receipt. It signed a document in proof that customer has received cash from his own account from the window.
Travelers Check: is redeemable for cash and use as payment in almost everyone. It is related to a current account, but is paid as a service in the time of receipt. Traveller's checks are issued by banks and other nonbank financial intermediaries of recognized international presence, such as VISA, American Express, MasterCard, etc., In euros or foreign currency (dollars, pounds, yen ...). In case of theft or loss can be replaced, if not already collected.
Forms of issuing checks
A check can be issued:
Bearer: Anyone who has this kind of check is entitled to collect. Be careful: if you lose it and whoever it takes, you can not claim anything.
Nominative: In this case, only the person or company whose name appears on the check may charge you.
However, it is possible to transfer the right to charge a third party through what is called the "endorsement". To endorse a check, the payee in the document type the name of another person, who becomes the new beneficiary, and signs. Nominative Checks may include the clause "to order", which expressly permits or endorsement clause "not to order" that prevents transmission by endorsement.
Cross Cheque: We cross a check when you draw two parallel diagonal lines on the obverse. This can only be charged in a particular bank, so that it in turn waged copper in the body. Checks can "cross over" either by the drawer or by the holder.
Check "to pay into account": If a check has written the words "payable in account" means that money can not be withdrawn in cash, but will have to be entered in a bank account. This is done to reduce the risk in case of loss or theft.
Cross checks and checks to pay into account easier to identify who the charge.
A check element
Essential requirements:
The following items are required on a check and the lack of any of them void.
The specific name of "check" inserted into the document (in the language used for writing it).
The mandate to pay a certain amount of money in euros or in foreign currency.
The name of the drawee, provided a bank.
The issue date.
The signature of the drawer.
In addition, there are two natural requirements whose absence is supplied by the law in the following terms:
Place of payment: if not specified, shall be considered instead of the payment of the check appears next to the name of the drawee. If you have designated several locations, the check will be payable on the first one. In the absence of these indications, the check will be paid at the place of issue.
Place of issue: if it is not indicated on the check it is deemed to be made in the place that appears next to the name of the drawer.
• Within 15 days from its date, if payable in the same place of issue.
• Within a month, if they are paid in the same country of issue, but rather different from this.
• Within three months if they are issued in a Latin American country and payable in another Latin American country.
• Within four months, if they are issued in a Latin American country to be paid outside of Latin America.
We can also say that the check is a payment order is not a promise to pay, so the check can serve as partial payment of a debt and the shortfall will be paid within six months following their date.
Death does not cause exemption for payment of the check
Checks should be presented for payment:
• Within fifteen days of its date, if they are paid at the same place of issue.
• Within a month, if payable in the country of issuance
• Within three months, if issued a Latin American country and payable in any other Latin American country.
• Within four months, if issued a Latin American country in Latin America to be paid.
Presenting a check clearing house will have the same effects as made directly to the drawee. The bank shall, in their relations with the drawer to cover the check until the remaining balance, except where legally released from that obligation.If available funds are insufficient to cover the full amount of the check, the drawee shall give the holder the partial payment of the balance.
Even if the check has not been submitted in time, the debtor must pay if the drawer has sufficient funds or make a partial tender offer, provided it is submitted within six months of its date.
Without just cause when the drawee refuses to pay a check or make a partial payment offer prevented in previous articles, the drawer shall pay by way of penalty, a sum equivalent to 20% of the check or the available balance, subject to the persecution drawer tracks on compensation for damages incurred.
The holder may refuse partial payment. If the owner accepts the partial payment, the drawee check the compatibility of the amount paid and return the defending champions. The drawer may revoke the check, under their responsibility, but have not passed the deadlines for submission, without prejudice to Article 742.
Revocation notified the bank can not pay the bill Article.The death or incapacity of the drawer to the drawee shall not remove the obligation to pay the check Article 725.(Bankruptcy, competition), judicial settlement, binding on the left for refusing to pay after they have been publications in the cases provided by law Article 726.
COMPULSORY LIQUIDATION.
The touchdown put the drawee of the check, having been timely filed and paid in full or in part, the effect of the protest. Any bank will be forced to return to the container with your statement, that original checks paid.
The exchange action against the drawer and guarantors expired because it was not presented and protested the check in time. The exchange action against the other signatories expires by the simple failure to file or timely claim.
The drawer of a check presented in time and not paid by its holder and penalty payment, 20% of the check amount, subject to such holder by common pathways to obtain compensation for the damage caused. Any bank will be liable to a depositor for the payment of a check to make false or whose number has increased, unless the depositor to notify the bank within three months after he returned the check, the title was false or the amount had increased.
The owner of a check that has lost one or more forms and not given timely notice to the bank may refuse payment if the alteration or falsification are notorious.
To start it is clear and feasible to know that this system is an effective money circulation and less dangerous, since this is exercised the exchange of money in large quantities, and with this practice as a certificate that guarantees an amount of money. The check is a negotiable mechanism that can be endorsed to third parties and that in the event of a default by either lack of funds or bank negligent merit pay this check executive and becomes an enforceable obligation. The endorsement may be made by the demonstration of endorsement on the check and the signature of the endorser. An endorsement transfers all the receivables arising from the check. The endorser, unless a clause is entered against, guarantees payment of the check to those third parties who possess later. The check issued to bearer may endosarse or transmitted by simple delivery.
We define value as a title check on the person who is authorized to withdraw money from an account, taking money on this, extending to another person through an authorization check to withdraw a certain amount of money from your account, regardless of the presence of the bank account holder.
Involved in the drawer and the drawee, the drawer is one that issued the check and the drawee is the one who receives it.
The check is used today as the various payments can be made more easily and safely in large quantities they are. The check is payable at the time of filing the drawee. As receivable that is, the payment of the check should be done precisely against delivery.
The drawer is primarily responsible for the payment of the check. So check in the direct exchange action is brought against the drawer and guarantors and back action against the endorsers and their guarantors.
The drawer of a check presented in time and not pay for a reason attributable to the drawer, is liable for damages suffered by the holder.
The lending institution that authorizes a person is obliged to issue checks to cover up the amount of the sums which have available the drawer. When the institution refuses without just cause to pay a check must compensate the drawer of damages.
It is said that a check bounced when no funding.
It is noteworthy that the check is always payable on demand, and that any annotation the contrary shall be void. The post-dated check will be payable upon presentation. Checks are certain terms for presentation that are framed in the legal Mall, which it will make you have more caution with these titles make them when required to avoid problems later.
Involved in the drawer and the drawee, the drawer is one that issued the check and the drawee is the one who receives it.
The check is used today as the various payments can be made more easily and safely in large quantities they are. The check is payable at the time of filing the drawee. As receivable that is, the payment of the check should be done precisely against delivery.
SUBMISSION AND PAYMENT
I concluded that when it comes to the presentation of checks and payment is always payable on demand, at any given point otherwise be negligent. All post-dated checks and presented for payment before the specified day of issue shall be payable on the day of their presentation.
The owner or beneficiary shall submit a check within the following periods from the date of issuance:
1) Within fifteen days of its date, if paid at the same place of issue.
2) Within a month, if payable in the country of issuance, but rather different from this.
3) Within three months, if they are issued in a state of Latin America country and payable in any other country in Latin America
4) Within four months, were issued in a Latin American country to pay outside Latin America.
When the current account of the drawer has no funds to meet the full payment, the bank of the person issuing the check is required to cover the check until the balance remaining in the account at the time of presentment for payment, ie , offer a partial payment, except legal provision to release him from that obligation, the holder may refuse partial payment, but if you choose to accept the drawee check the compatibility of the amount paid and the title returned to the holder as provided in Article 723.
Filing and payment
before starting to mention regarding the legislation of the check must make a definicionde what and the check, and then you say that the check is a debt nominative or bearer containing unconditional order to pay the view a given amount of diner issued by a lender who is in it for funds that may be available in that form
Article 717 of the Commercial Code speaks of the check must be payable on demand, and any annotation it shall be understood by this unwritten meaning that faces a mandatory rule, as to the presentation of this title value for payment required parameters corresponding to that ea presentation must be within 15 days of the date apartir if this was paid in the same place of issue, if payable in the country of issue but in a different designation of this the term is one month if, on the other hand is the term of three mees if the check is payable in any country of latinonoamerica and eta the termio ppor last four months when the check is issued in a Latin American country but will be paid outside this.
regarding the Bank's obligation to make payment by check or to offer partial payment up to the amount of the balance, the bank except legal provision to release him from the obligation the bank is obligated to cover the check to the amount of the balance amount available this in terms of its relations with the drawer, however, that when the drawer refuses without just cause to pay the check receives a sanction which corresponds to 20% of the available balance cheuqe or in prejudice to said drawer chase common pathways for compensation for damages they cause, but the drawer may revoke your own risk if they have not passed the deadlines for submission, subject to the provisions of section 742
moreover this is an important point and regarding the limitation and prescription in the first point (expiration) The exchange action against the drawer and guarantors expires because it was not presented and protested the check in time, if at all the deadline for the drawer had sufficient funds in the drawee power and, for reasons not attributable to the drawer, the check made payable. and as for the precripcion collection actions arising prescribe check: The last of the fork, in six months from the presentation, those of the endorsers and guarantors, in the same term, counted from the day following that on pay the check.
Articles 717 to 733 from the Colombian Commercial Code are related to checks (payment and security issues). According to this code, checks must be presented for payment within a deadline of 15 days. In case that any check shows some kind of forgery or alteration, it will not be paid by the bank. Any bank will be liable to a depositor by the payment of a check that makes false or whose amount has been increased, unless the depositor’s notification to the bank within 3 months after it returned the check, specifying that the title was false or that the amount had been increased illegally. On the other hand, the bank will not be responsible in the cases that the alteration of the check result to be done by the signer of the check. It is also clear that any bank must return the statements and the original checks that had been paid. The payment of the check will prescribe if the check is not charged on time by the client, even in the case that there enough funds for the check to be paid. There are several situations when a bank will be responsible for the payment of a check in the case that the bank had been informed by the owner of the checks, for instance, the case of an owner who has lost one check or more forms and has not given timely notice to the bank.