SOCIALIST REPUBLIC OF VIET NAM
Hanoi ,May 09, 1996
REGARDING THE REGULATION ON THE ISSUE AND USE OF CHECKS
Pursuant to the Law on Organization of the Government of September 30, 1992;
At the proposal of the Governor of the State Bank,
Article 2.- This Decree takes effect on the 1st of July 1996. All the earlier regulations concerning the issue and use of checks are now annulled. The Governor of the State Bank shall guide the implementation of this Decree.
Article 3.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government and the Presidents of the People’s Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.
FOR THE GOVERNMENT
Vo Van Kiet
REGULATION ON THE ISSUE AND USE OF CHECKS
(issued together with Decree No.30-CP of May 9, 1996 of the Government)
Article 1.- A check is the money payment order of an account owner, made according to the form prescribed by the State Bank to ask the paying unit to deduce a sum from the deposits of the check issuer to pay to the beneficiary named in the check or the check bearer.
A check can be assigned according to the prescriptions in this Regulation.
– Check owner is the person in whose name the account of payment deposits is opened and who is the owner or representative of the owner of the sum recorded in this account.
– Check issuer is the owner of the payment deposit account or his/her delegate. He/she must put his/her signature to issue the check according to the legislation on delegation of power.
– Check beneficiary is the person entitled to the ownership of the sum recorded in the check.
– Check assigner is the person who assigns the right of ownership of the sum recorded in his/her check to another person.
– Paying unit is the unit keeping the deposit account of the check owner and is licensed by the authorized agency to conduct payment services.
– Assigned receiving unit is the unit in its capacity as agent for the check beneficiary to receive the money on his/her behalf. A unit pertaining to the same system of the payment unit is also regarded as an assigned receiving unit when it receives the check.
– Check payment warrant is the certification by the paying unit that the check is payable.
– Signed check is the check in which the name of the beneficiary of the check is written.
– Unsigned check: is the check in which the name of the beneficiary of the check is not written.
Article 4.- The check issuer and the check assigner shall take responsibility for the check from the moment he/she signs to issue the check or assign it until the end-beneficiary has received the full sum.
Article 5.- The time limits defined in this Regulation include the Sundays and holidays. If the ending day of the time limit is a Sunday or holiday, the limit shall be put off till the working day immediately next to that Sunday or holiday.
FORM AND CONTENTS OF CHECKS
On the front side:
– The word “Check” printed in block letters;
– The serial number of the check;
– The payable sum written in number and in letters;
– The name, family name and address of the check issuer and the number of his/her account;
– Name, family name, address of the beneficiary and the number of his/her account (if any);
– Name and address of the paying unit;
– Place and date of signing and issue of the check;
– Signature of the check issuer.
The back side of the check shall be used to specify the assignment .
Article 7.- A valid check must meet all the demands defined in Article 6 of this Regulation. It admits no erasure nor correction. The figures written in letters and in numbers must correspond with each other.
Article 8.- The correction or amendment to the elements in the check must be defined by the Governor of the State Bank. All additions to the check related to the interest rate or the payment terms shall be considered invalid.
– To pay to the person named in the check;
– To pay to the bearer of the check;
– To make cash withdrawal at the paying unit.
Article 10.- A check shall not be used to withdraw cash when it has been marked with two parallel lines across the left corner or has been marked with the word “money order” on the front side of the check.
RIGHTS AND OBLIGATIONS OF THE CHECK ISSUER
Article 12.- An account owner may delegate another person to sign for issuing a check on his/her behalf. This delegation must be made in writing in accordance with prescriptions of law. The assignee to sign for issue of a check has the same rights and obligations as the owner of the account within the limit of his mandate.
The check still retain its value of a payment instrument even after its issuer who is an individual dies, or is declared legally incapable by a court, or is restricted in his/her capacity of civil acts.
With regard to a check issued by a representative with legal status, if that legal person is dissolved, is declared insolvent or has its accounts frozen, the check shall be paid according to the decision of the authorized agency.
The guarantee shall be effected through the certification signed by the paying unit and the affixture of the seal “Guarantee” on the front side of the check.
When asking for a check guarantee, the check issuer must complete the procedure to record the sum written on the check into a separate account at the paying unit to be paid to the check beneficiary.
The person, who loses a check that has been misused to withdraw money at the paying unit before the latter has been informed of the loss, shall have to bear all the loss therefrom.
RIGHTS AND OBLIGATIONS OF THE BENEFICIARY
Article 16.- Within the valid time for payment of the check, the beneficiary may remit the check either directly to the paying unit or through the assigned recipient in order to ask for payment. If, for a reason of force majeure the check cannot be remitted within the valid time for payment, after this force majeure period the beneficiary of the check must remit it immediately to the paying unit together with the written certification of the People’s Committee of the commune or ward where the check issuer resides or works about the force majeure reason.
For a signed check, when assigned, it must record the name of the assignee.
The assigner of the check may terminate the next assignment by writing before his/her signature the words “assignment discontinued”.
Article 18.- If, after signing the assignment of the check, the assigner who is an individual dies or is declared incapable of legal actions by the court or is restricted in his/her capacity for civil acts, the check still retains its validity as payment order.
For the assigner of the check who is a representative with legal status, if that legal person is dissolved, is declared insolvent or has its accounts frozen, the check shall be paid according to the decision of the authorized agency.
Article 21.- The beneficiary of a check who loses it must notify immediately the paying unit and the check issuer. The notice of check loss shall be considered an order of suspension of payment of the check. The person who notifies of a check loss shall have to take responsibility for the accuracy of the notice on check loss.
The recipient of a check may ask the paying unit to pay compensation in case the check has been misused to withdraw money at the paying unit after the latter has received the check loss notice.
RIGHTS AND RESPONSIBILITY OF THE PAYING UNIT
– The validity of the check;
– The signature of the check issuer;
– The continuity in the succession of the signatures if it is a signed check.
– The account of payment deposit falls short of the money for the payment of the check;
– The check is not valid;
– There has been an order to suspend payment of the check;
– The valid time for payment has expired;
– The signature for check issue is beyond the competence defined in the assignment document.
The payment unit shall have to issue a bill on the refusal of payment, name in writing the reason and hand it to the check remitter together with the check which is refused payment.
Article 25.- The paying unit shall have to pay immediately if the check is valid when it is remitted for payment. If the delay in the payment is due to the fault of the paying unit and causes damage to the beneficiary, the paying unit shall have to pay compensation.
Article 26.- With regard to a check for which an order has been issued for suspension of its payment, if the paying unit still agrees to pay, thus causing damage to the owner of the account or the beneficiary, the paying unit shall have to pay compensation.
The paying unit is entitled to sue the individuals or legal persons who take acts causing damage to the paying unit and ask compensation for the damage which has been done to it.
RIGHTS AND OBLIGATIONS OF THE ASSIGNED RECEIVING UNIT
The assigned receiving unit is entitled to take a fee for the check payment service as prescribed by the State Bank and shall not have to refund the fee if the check is refused payment.
– The check is not valid;
– The valid time for payment of the check has expired.
Article 29.- After receiving the check, the assigned receiving unit must immediately remit the check to the paying unit. If the delay in remitting the check causes damage to the beneficiary, the assigned receiving unit shall have to pay compensation. If for a force majeure reason it cannot remit the check immediately, when the force majeure time limit has terminated, the assigned receiving unit must remit the check in time to the paying unit together with the written certification of the force majeure reason by the People’s Committee of the commune or ward where the assigned receiving unit is located.
COMPLAINT AGAINST REFUSAL TO PAY A CHECK
Article 30.- In case a check is refused payment, the beneficiary may file a complaint against the person who signs to issue the check and the check assigners to claim back the money written in the check.
The written complaint must be attached to the bill refusing payment of the check from the paying unit.
Article 31.- For a signed check, the beneficiary shall send the complaint directly to the assigner and the issuer of the check. A complaint shall be valid only when it is written and sent within four working days after reception of the bill refusing to pay the check. Upon receiving the complaint, the check assigner shall, in his/her turn, have to notify the previous assigner within four working days. Such notification shall proceed on to all the assigners until it reaches the check issuer.
For an unsigned check, the recipient shall have to send his/her complaint to the check issuer within four working days after receiving the bill refusing to pay the check.
Article 32.- If for a force majeure reason, the time limit for sending the complaint may be extended to the end of the time of the force majeure reason. The reason of force majeure shall have to be certified in writing by the People’s Committee of the commune or ward where the beneficiary resides or works.
Article 33.- If the check is refused payment due to the expiry of the valid time for payment, the check beneficiary shall lose his/her right to complain except for the cases stipulated in Article 32 of this Regulation. However, the check still has the value as an evidence for the beneficiary to claim back his/her money before the court.
Article 34.- Upon receiving the complaint, the receiver shall have to reply to the check beneficiary. In case the complaint is accepted, the receiver of the complaint shall have to repay the money to the check beneficiary and also has the right to file a complaint to claim back the money from the previous assigners of the check (if any).
SUING AND STATUTE OF LIMITATION FOR SUING
Article 35.- After sending the complaint to ask for payment, if he/she does not agree with the settlement proposed by the complainee, the check beneficiary may file a law suit to the court against one or all the persons responsible for the check.
The suing dossier shall comprise:
– The suing petition;
– The check which has been denied payment;
– The bill refusing payment of the check written by the paying unit.
– The interest of the sum written in the check calculated according to the interest rate of overdue debts in the category of bare interest rates for short-term loans prescribed by the State Bank. The time for calculating the interest begins from the date the beneficiary remits the check asking for payment till the date of payment;
– The expenses related to the sending of the complaint and the filing of the legal action already spent by the beneficiary.
Article 37.- The sued assigner of the check may sue the previous assigners or the check issuer in order to claim back the whole of the money he/she has paid and other related expenses he/she has incurred.
The sued person may, in his/her turn, sue the other persons responsible for the check within three months after the termination of the legal action against him/her.
In case of a force majeure reason, the above statute of limitation may be extended till the termination of the force majeure period. The force majeure reason must be certified by the People’s Committee of the commune or ward where the suer resides or works.
INHIBITIONS AND HANDLING OF VIOLATIONS
– Faking or fiddling the check;
– Deliberately delivering and receiving a faked check, a fiddled check, a check of which the payment valid time has expired, or a check of which order has been issued for suspension of payment;
– To issue a check which is above the sum deposited for payment;
– To pay a check which has expired its payment valid time except the force majeure case mentioned in Articles 16 and 29 of this Regulation;
– To assign a check which has expired its payment valid time or a check which has been refused payment.
Any organization or individual that violates the above inhibitions shall, depending on the seriousness of the violation, be subject to administrative sanctions, prohibited from check issuing or be examined for penal liability as provided for by law.
Article 41.- The paying unit and the assigned receiving unit which violates the stipulations in this Regulation shall, depending on the extent of the violation, have to compensate for damage, be subjected to administrative sanctions, prohibited from performing the task or service of paying the checks, or shall be examined for penal liability as prescribed by law.