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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
159/2003/ND-CP
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Hanoi,
December 10, 2003
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DECREE
ON THE SUPPLY AND USE OF CHECKS
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government of December 25, 2001;
Pursuant to the Law on the State Bank of Vietnam of December 12, 1997;
Pursuant to the Law on Credit Institutions of December 12, 1997;
At the proposal of the Governor of the State Bank of Vietnam,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Subjects of
regulation and scope of application
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Article 2.- Right to
agree on the application of this Decree to checks supplied outside the
Vietnamese territory
For checks supplied outside the Vietnamese
territory but used in the Vietnamese territory, the involved parties may agree
on the application of this Decree.
Article 3.- Application
of international treaties and practices
1. In cases where international treaties which
the Socialist Republic of Vietnam has signed or acceded to contain provisions
different from those of this Decree, such international treaties shall apply.
2. Parties participating in the supply and use
of checks in international payment activities may agree on the application of
international practices, provided that such practices are not contrary to the
law of the Socialist Republic of Vietnam.
Article 4.-
Interpretation of terms
In this Decree, the following terms shall be
construed as follows:
1. "Check" means a payment instrument
made in form of pre-printed voucher by a drawer, ordering the payer to pay
unconditionally a certain sum of money to the beneficiary in compliance with
the provisions of this Decree.
2. "Blank check" means a voucher for
making a check, pre-printed by a payment service-providing organization
according to the set form with contents of the elements prescribed in Clauses 1
and 2, Article 14 of this Decree not yet fully filled in, and therefore not yet
valid as a check. From this voucher, persons supplied with blank checks shall
make a check to pay to the payee.
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4. "Drawer" means a person who makes
and signs a check to order the payer to pay a sum of money inscribed in the
check on his/her behalf.
5. "Payee" means a person designated
by the drawer to have the right to enjoy or transfer the right to enjoy the sum
of money inscribed in the check.
6. "Beneficiary" means a person who
holds a check which:
a/ Is inscribed with the name of the payee being
himself/herself; or
b/ Is not inscribed with the name of the payee
or is inscribed with the phrase "pay to the check holder;" or
c/ Has been transferred by endorsement for
himself/herself through a row of consecutive transfer signatures.
7. "Payer" means a payment
service-providing organization where the drawer is entitled to use a payment
account with a certain sum of money for drawing checks under an agreement
between the drawer and such payment service-providing organization.
8. "Collector" means a payment
service-providing organization which provides the service of collecting checks.
9. "Check clearing payment center"
means the State Bank or a payment service-providing organization licensed by
the State Bank to organize and take the prime charge of the check exchange or
clearing payment and settlement of financial obligations arising from the check
payment to the payment service-providing organizations being their members.
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11. "Check transfer" means that a
beneficiary transfers checks and the rights related to checks according to the
provisions of this Decree to another person.
12. "Check warrant" means that the
payer secures the payment of a check when such check is presented for payment
within the presentation time limit.
13. "Presentation time limit" means the
duration counting from the drawing date inscribed in a check to the end of the
day when the check is unconditionally paid upon its presentation.
14. "Suspension of check payment"
means that the drawer issues a written notice requesting the payer not to pay a
check he/she has drawn.
15. "Check recourse" means that the
beneficiary carries out procedures to claim the sum of money inscribed in the
check which has been presented within the presentation time limit but refused
to be paid.
16. "Check-related signee" means a
person who has signed and is related to the check in his/her capacity as a
drawer, transferor, guarantor or warrantor.
17. "Persons" referred to in this
Decree are construed as individuals, legal persons and other subjects in civil
relations.
Article 5.- Drawing and
payment of checks inscribed with foreign-currency sums
Checks may be drawn in foreign currency(ies) in
cases where the drawers are allowed to pay foreign currency sums and the payees
are the subjects allowed to receive foreign currencies according to the law
provisions on foreign exchange management. Checks drawn in foreign currencies
must be clearly inscribed with the names of the payees and must not be
transferred, except where they are transferred to the payment service-providing
organizations defined in Article 24 of this Decree.
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Article 6.- Obligation
of drawers to pay sums of money inscribed in checks
Drawers are obliged to unconditionally pay the
whole sums of money inscribed in checks they have drawn. Any agreement which
prescribes that the drawer does not have to fulfill this obligation is invalid.
Article 7.- Rights and
obligations of check-related signees
1. Persons who have given their signatures
related to checks in their capacity as drawers, transferors, guarantors or
warrantors shall have the rights and obligations over the checks according to
the provisions of this Decree.
2. If, in relation to a check, there is also the
signature of a person irrelevant to the check, forged signature or signature of
a non-existent person or signature of a person having no relations with the
person having signed the check, the signatures of the persons having the rights
and obligations mentioned in Clause 1 of this Article shall still be fully
effective.
Article 8.-
Responsibilities of check-related signees in their capacity as representatives
1. Signees related to checks in their capacity
as representatives include:
a/ Representatives at law of legal persons,
households, cooperative groups;
b/ Representatives authorized by representatives
at law of legal persons, households or cooperative groups;
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2. Signors related to checks in their capacity
as representatives must express their representative capacity and names of the
persons they represent. Represented persons are responsible to pay sums of
money of the checks signed by the representatives within their representative
competence.
3. In cases where signees are related to checks
in their capacity as representatives but are incompetent to represent or where
they are competent to represent but their representative capacity or names of
persons they represent are not clearly stated, they shall have to bear personal
responsibility for paying sums of money of such checks.
4. Signees related to checks in their capacity
as representatives, who act beyond their representative competence, shall have
to bear personal responsibility for the consequences of signing the check
beyond their competence.
Article 9.- Designation
regarding the payment of interests on sums inscribed in checks
Any designation written in checks regarding the
payment of interests on sums of money inscribed in such checks is invalid.
Article 10.- Acceptance
of checks in payment
The acceptance of checks in payment must be
totally freewill and agreed upon between the drawer and the payee, or between
the check transferor and transferee.
Article 11.- Time
limits and force majeure events
1. The time limit for presenting checks, the
time limit for sending recourse notices prescribed in this Decree shall include
the law-prescribed public holidays. If the ending days of the above-said time
limits are law-prescribed holidays, such time limits shall be put off till the
next working days immediately after such prescribed holidays.
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Force majeure events are those which occur in an
objective manner beyond anticipation and beyond remedies even though possible
necessary measures have been already applied.
3. The beneficiaries or the persons authorized
by the beneficiaries to present checks or the persons responsible to send
recourse notices shall have to notify and prove the occurrence of force majeure
events to the payers (for case of check presentation for payment) or receivers
of recourse notices (for case of check recourse), so that the payers or
recourse notice receivers (other than drawers) shall notify the drawers of such
force majeure events. If they accept the force majeure reasons, the drawers or
recourse notice receivers shall certify the receipt of the notices, clearly
stating the date, signatures and that the payment has been made according to
regulations.
Chapter II
SUPPLY OF CHECKS
Article 12.- Supply of
blank checks
1. Organizations supplying blank checks and
scope of supply of blank checks:
a/ The State Bank shall supply blank checks to
credit institutions and other organizations which open payment accounts at the
State Bank;
b/ The banks shall supply blank checks to
organizations and individuals that are permitted to use payment accounts to
draw checks according to agreements between the two sides;
c/ Other organizations permitted to provide
check payment services shall supply blank checks to organizations and
individuals that are permitted to use payment accounts to draw checks according
to agreements between the two sides.
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Article 13.- Printing,
delivery, reception and preservation of blank checks
1. The check-supplying organizations shall
organize the printing of blank checks for supply to users.
2. Before blank checks are printed and supplied
for use, the check-supplying organizations shall have to register and deposit
the blank check form at the State Bank.
The delivery, receipt and preservation of blank
checks shall comply with the current regulations of the State Bank on delivery,
receipt and preservation of important prints.
Chapter III
ELEMENTS OF CHECKS AND
CHECK DRAWING
Article 14.- Elements
of checks
1. On the front side of a check, there are the
following elements:
a/ The word "Check" printed on the
upper part of the check;
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c/ The payee;
d/ The sum of money, written in both figures and
words;
e/ The name of the payer;
f/ The place of payment;
g/ The drawing date;
h/ The signature (with the full name) of the
drawer.
2. Any voucher which lacks one of the elements
prescribed in Clause 1 of this Article shall not be valid as a check, except
for the following cases:
a/ If no payment place is stated, the payment
place shall comply with the provisions in Clause 3, Article 28 of this Decree;
b/ If the name of the payee is not inscribed,
the sum of money inscribed in the check shall be paid to the check holder.
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4. Apart from the elements prescribed in Clause
1 of this Article, the check-supplying organizations may insert other elements
provided that they do not give rise to more legal obligations of the concerned
parties, such as: serial number of the payment account which the drawer is
entitled to use to draw checks and other elements.
In cases where a check is paid via the check
clearing payment center, there must be in such check elements agreed upon with
the check clearing payment center.
5. The back side of the check shall be used for
inscription of the transfer contents.
Article 15.- Size and
arrangement of elements on checks
1. Check size and arrangement of elements on
checks shall be designed and effected by the check-supplying organizations,
except for cases where checks are paid via the check clearing payment center.
2. The check clearing payment center shall reach
agreement with the payment service providing organizations being its members on
the check size, elements and positions of elements on checks, for those paid
via the check clearing payment center.
Article 16.- Checks
drawn to order the payment service-providing organizations
Checks shall only be drawn to order one payment
service-providing organization where the drawer is entitled to use a payment
account and a sum of money for drawing check according to the agreement with
such organization.
Article 17.- Drawing of
checks
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a/ A designated person with permission for check
transfer by clearly writing the name of the payee on the check following the
phrase "pay to the order of" - or just the name of the payee
without the said phrase; or
b/ A designated person without permission for
check transfer by clearly writing the name of the payee on the check following
the phrase "not pay to the order of;" or
c/ The a check holder by writing the phrase
"pay to the check holder" or not writing the name of the payee.
2. Checks may be drawn to order the payment of
money to the their own drawers.
Article 18.- Drawing of
checks by the payer
Checks shall not be drawn to order the drawer
himself/herself to act as the payer, except for cases where checks are drawn
for payment of money from one unit to another unit of the payer.
Article 19.- Sums of
money inscribed on checks
The sum of money inscribed on a check must be
inscribed both in figures and words. In case of disparity between the sum in
figures and the sum in words, the sum to be paid shall be the smaller one.
Article 20.- Checks for
payment in accounts and checks for cash payment
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2. For checks not inscribed with the phrase
"pay in account," the beneficiary may be paid in cash.
Chapter IV
CHECK TRANSFER
Article 21.- Transfer
1. For checks drawn and inscribed with the name
of the payee
a/ In case of one check drawn with the name of
the payee inscribed after the phrase "pay to the order of" - or
just inscribed with the name of the payee without this phrase, the payee may
transfer such check by inscribing the name of the transferee, the date of
transfer, his/her signature, full name and address on the back side of the
check (hereinafter referred to as the endorsement) and hand over such check to
the transferee.
b/ The transferee of the said check may further transfer
it by endorsing the same way.
c/ The transferor of the said check may stop the
further transfer of such check by inscribing the phrase "not for further
transfer" before his/her signature."
d/ The holder of the check transferred by means
of endorsement shall be the beneficiary if such check has been continually
transferred to him/her.
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Article 22.- Effect of
the transfer
1. When checks are transferred, all the rights
related to them shall also be transferred to the transferees.
2. When checks are transferred, the whole sums
of money inscribed thereon must be transferred. The partial transfer of the
sums of money inscribed on the checks shall not be valid.
3. The transfer by the payers shall not be
valid.
Article 23.-
Responsibilities of transferor
1. The transferor is responsible for paying the
sum of money inscribed on the check to the transferee as well as subsequent
transferees, except for the cases mentioned in Clause 2 below.
2. In cases where the transferor inscribes the
phrase "not for further transfer" but such check is still further
transferred, the transferor who has inscribed such phrase shall be responsible
for paying the sum of money inscribed on the check only to the person he/she
has personally transferred the check to.
Article 24.- Transfer
of checks to payment service-providing organizations
1. Check beneficiaries may transfer checks to
one payment service-providing organization by means of endorsement.
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Chapter V
CHECK PAYMENT SECURITY
Article 25.- Check
warrant
1. If checks fully have the contents prescribed
in Clauses 1 and 2, Article 14 of this Decree and the drawers have enough money
to pay the checks when they are presented, the payers shall be obliged to
warrant the check payment at the requests of the drawers by inscribing the
phrase "payment guarantee" and give their signatures on the checks.
2. The payers are obliged to secure the payment
for the already warranted checks presented for payment within the presentation
time limit.
Article 26.- Check
guarantee
1. Checks shall be secured for payment of part
or whole of the sums of money inscribed thereon by the guarantee by the third
party (called the guarantor) other than the payer.
2. The guarantee shall be effected by the
guarantor by way of inscribing the word "guaranteed", the guaranteed
sum of money, the name of the guaranteed, the signature and name of the
guarantor on the check or on the document enclosed with the check.
3. In cases where the guaranteed is not
specified, the guaranteed shall be the check drawer.
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1. The guarantor shall be responsible for the
payment of the sum of money on the check like the guaranteed when the latter
fails to perform or improperly performs the obligation to pay the sum of money
on the check. In case where only a part of the sum of money inscribed on the
check is guaranteed, the guarantor shall only be responsible for such
guaranteed portion.
2. When the guarantor fulfills the guarantee
obligation, the guarantor may request the guaranteed and the persons
responsible for the guaranteed to perform the obligation to refund the sum of
money which has been paid by the guarantor on their behalf.
3. The guarantor may request the guaranteed to
pay remuneration (if so agreed).
4. The guaranteed shall be responsible to refund
the sum of money which has been paid by the guarantor on his/her behalf.
Chapter VI
CHECK PRESENTATION AND
PAYMENT
Article 28.- Time limit
and place for check presentation
1. The time limit for presenting a check is 30 days
after the drawing date.
2. In cases where a force majeure event occurs,
rendering it impossible for a check to be presented within the prescribed time
limit for payment, the presentation time limit may be prolonged beyond the
duration prescribed in Clause 1 of this Article and right after the end of such
event, the check must be presented for payment. The prolonged duration in this
case shall not exceed 6 months counting from the drawing date.
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a/ The payment place inscribed on the check; or
b/ If the payment place is not inscribed on the
check, such check must be presented for payment at the address of the payer; or
c/ If the check is not inscribed with the
payment place and the payer's address is unidentified, such check shall be
presented for payment at the head office of the payer; or
d/ If the check is allowed to be paid via the
check clearing payment center according to Article 29 of this Decree, such
check shall be presented for payment at the check clearing payment center.
Article 29.-
Presentation of checks at the check clearing payment center
The payment service-providing organizations
shall present checks for payment at the check clearing payment center according
to their agreements with the check clearing payment center.
Article 30.-
Presentation of checks through collectors
Beneficiaries who do not directly present checks
may authorize one payment service-providing organization to present checks on
their behalf according to Article 28 of this Decree, on the basis of a written
collection agreement with such organization. In this case, the rights and
obligations of the payment service-providing organization which performs the
check collection service according to the agreement between the two parties
shall comply with current law provisions.
Article 31.- Payment
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The payers who fail to comply with the above
regulation shall have to pay to the beneficiaries damage compensations, which
are at most equal to the interests of the sums of money inscribed on the
checks, counting from the date the checks are presented for payment at the
fining interest rate for late check payment prescribed by the State Bank for
application at the time of check presentation.
In cases where checks are presented for payment
before the drawing date inscribed thereon, the payment shall only be made as
from the drawing date inscribed on the checks according the above provisions.
2. For checks presented after the presentation
time limit but not later than 6 months after the drawing date, the payers may
still make the payment if they receive no notice on suspension of payment for
such checks and the drawers have enough sums of to be-used money to pay such
checks.
3. In cases where sums of money used by the
drawers in drawing checks are not enough to pay wholly the sums of money
inscribed on such checks according to the provisions in Clauses 1 and 2 of this
Article, if the beneficiaries request the payment of part of the sums of money
inscribed on the checks, the payers shall be obliged to pay at the request of
the beneficiaries within the sums of money which the drawers currently have and
can be used to pay checks.
When paying part of the sums of money inscribed
on the checks, the payers shall have to clearly inscribe the paid amounts on
the checks and return such checks to the beneficiaries or persons authorized by
the beneficiaries. The beneficiaries or persons authorized by the beneficiaries
shall have to make receipts of such payment and hand them to the payers.
Receipts in these cases are considered vouchers
evidencing the payment of part of the sums of money on the checks for the
payers.
4. In cases where the checks are presented for
payment after the drawers die or lose their civil act capacity, such checks
shall remain valid for payment according to the provisions in Clauses 1, 2 and
3 of this Article.
5. The payment of checks at the payers shall
terminate after 6 months counting from the drawing date inscribed on the
checks.
Article 32.- Payment of
checks for payment to accounts and checks for payment in cash
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The payer who fails to comply with this
regulation shall be responsible for the lost money amount which may arises but
must not exceed the sum of money inscribed in the check.
2. For checks without the phrase "pay in
account," the payers may pay the sums of money inscribed on such checks in
cash or make account transfers at the requests of beneficiaries.
Article 33.- Payment of
transferred checks
Payers, when paying a check transferred by means
of endorsement, shall have to examine it to ensure the continuity of the
transfer signatures.
Article 34.- Suspension
of check payment
1. Drawers may request the suspension of the
payment of the checks they have signed by notifying such to the payers who
shall stop the payment when such checks are presented at the payers. Payment
suspension notices shall be valid only after the time limit for presenting
checks.
2. Drawers shall still be obliged to pay the
sums of money inscribed on checks after the payment of such checks is rejected
by payers according to their payment suspension notices.
Article 35.- Refusal to
pay checks
Payers and the check clearing payment centers,
when refusing to pay checks, shall have to make written certifications of
payment refusal, clearly stating the serial numbers of the checks, the refused
sums on money, reasons for refusal, date of presentation, names and addresses
of check drawers, give their signatures and hand them to the check presenters.
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1. Persons supplied with blank checks and
beneficiaries shall have to preserve checks. If they lose checks, they shall be
liable for damage caused by the abuse of the lost checks.
2. Cases of check loss shall be handled as
follows:
a/ If the check losers are persons who are
supplied with blank checks and lose the blank checks or checks they had drawn,
they shall have to notify the check loss and the suspension of payment of such
checks to the payers;
b/ If the check losers are beneficiaries, they
shall have to notify the check loss to the payers and at the same time request,
directly or via the previous check transferors, the drawers to notify the
suspension of payment of such checks to the payers.
3. Persons who have lost their checks shall
still have the right over the lost checks according to the provisions of this
Decree, provided that such persons can prove they are beneficiaries of the checks,
which have not yet been abused for payment.
Article 37.-
Responsibilities of payers toward lost checks
1. If the payers have received check lost
notices, they shall, when such checks are presented for payment, have to
temporarily suspend the payment and seize such checks for five days, and at the
same time notify the presentation of checks, names, addresses and people's
identity card numbers (or equivalent papers prescribed by law) of the check
presenters to the persons who have sent check lost notices right on the date of
check presentation or the working day following such date.
The payers who fail to comply with this
regulation shall be responsible for the lost amount which may arises but must
not exceed the sums of money inscribed on the checks.
2. If within the duration of suspension of
payment of checks prescribed in Clause 1 of this Article, the persons notifying
the check loss acquire no evidence to prove the unlawfulness of the check
presenters, the sums of money in the checks shall, upon the expiry of such
duration, be paid to the beneficiaries.
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3. The payers shall not be responsible for the
losses caused by the abuse of the lost checks, if before receiving the check
loss notices, such checks have already been presented and paid in strict
compliance with this Decree.
Chapter VII
CHECK RECOURSE
Article 38.- Right to
recourse
Beneficiaries have the right to recourse from
drawers, transferors, guarantors and other obligators related to the checks the
sums of money inscribed on the checks if such checks are presented within the
presentation time limit but refused for payment with written certifications of
payment refusal made by the payers or the check clearing payment center.
Article 39.- Sending of
recourse notices
The recourse must be effected by making recourse
notices enclosed with copies of written certifications of payment refusal and
sent according to the following regulations:
1. For checks inscribed with the names of payees
and already transferred by means of endorsement, the beneficiaries shall have
to send recourse notices and copies of written certifications of payment
refusal to the drawers and concurrently to the persons having directly
transferred such checks to them (if any) within four days after receiving the
written certifications of payment refusal to request the payment of sums of
money inscribed on the checks.
The recourse notice receivers, who are also
transferees, shall, within four days after receiving the notices, have to
further notify the persons who have transferred the checks to them that the
checks are recoursed, clearly stating the names and addresses of the persons
that have sent the notices. This notification shall continue until the drawers
receive notices on check payment refusal.
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2. For checks not inscribed with the names of
payees, the beneficiaries shall have to send recourse notices to the drawers
within four days after receiving written certifications of payment refusal to request
the payment of sums of money inscribed on the checks.
3. In cases where notices are sent by mail, the
time of sending notices shall be the date inscribed on the post marks of the
sending places.
Article 40.-
Responsibilities and rights of persons related to recoursed checks
1. Recourse notice receivers shall be liable to
pay the recoursed sums of money in the checks to the beneficiaries who have
sent the recourse notices to them.
Persons subject to the recourse, when paying the
recoursed sums of money, may request the return of the checks and written
certifications of payment refusal.
2. The payers of the recoursed sums of money in
the checks, if being not the drawers of such checks, may carry out the recourse
from the drawers, transferors, guarantors and other persons related to the
checks having obligations toward them according to the provisions of this
Decree.
3. Check drawers shall have to pay the recoursed
sums of money on the checks they have drawn to the beneficiaries or the persons
having paid the recoursed sums of money upon receiving the recourse notices.
Article 41.- Recoursed
sums of money
1. Persons who carry out the recourse of checks
refused for payment may request the parties having obligations toward them to
pay:
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b/ Interests on the sums of money refused to be
paid counting from the date the checks are presented for payment at the fining
interest rate for late check payment prescribed by the State Bank for
application at the time the checks are presented;
c/ Expenses for the sending of recourse notices.
2. After paying the recoursed sums of money on
the checks, the persons having made such payment may request the parties having
obligations toward them to pay:
a/ Sums of money they have paid according to
Clause 1 of this Article;
b/ Interests on the paid sums of money, counting
from the date of payment of the checks at the fining interest rate for late
check payment prescribed by the State Bank for application at the time the
checks are presented;
c/ Expenses for the sending of recourse notices.
Article 42.- Extinction
of the recourse right
The recourse right shall extinct if the checks
presented for payment after the presentation time limit prescribed in Clauses 1
and 2, Article 28 of this Decree are refused for payment. In this case, the
checks shall be considered deeds of debt acknowledgement of the responsible
persons related to the checks to the beneficiaries. Beneficiaries have the
right to request the payment of debt amounts inscribed on the checks according
to the order and procedures prescribed by law.
Chapter VIII
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Article 43.- Lawsuit
initiation
If the recoursed sums of money on the checks are
not paid, the beneficiaries may initiate lawsuits against the drawers and the
persons with relevant obligations all together or separately. In cases where
one of the persons with relevant obligations, who, when facing the recourse,
has paid the sum of money on the check to the beneficiary, if not refunded with
such recoursed sum of money, such person may has the right to initiate a
lawsuit against the drawer and the persons having obligations toward him/her
all together or separately.
Article 44.- Scope of
obligation subject to lawsuit initiation
Persons initiating lawsuits on checks refused
for payment may request persons having obligations towards them to pay the sum
of money prescribed in Article 41 of this Decree.
Article 45.- Order,
procedures and statute of limitations for lawsuit initiation
The order, procedures and statute of limitations
for initiating lawsuits regarding unpaid checks shall comply with provisions of
law.
Chapter IX
ACTS OF VIOLATION AND
HANDLING THEREOF
Article 46.- Strictly
prohibited acts
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2. Intentionally transferring or receiving
transfer or presenting for payment a check, which is counterfeited, modified or
erased for deceitful purposes or illegally possessed.
3. Forging signatures of other persons or giving
signatures of non-existent persons on checks.
4. Intentionally transferring checks already
refused for payment.
5. Intentionally drawing checks beyond the
drawer's solvency as prescribed in Clause 2, Article 47 of this Decree.
6. Intentionally using checks after the right to
draw checks has been suspended as prescribed in Clause 6, Article 47 of this
Decree.
Violating organizations and individuals shall
have to make damage compensations, be banned from using checks, subject to
administrative sanctions or examined for penal liability according to the
provisions of law.
Article 47.- Drawing of
checks beyond the drawer's solvency
1. Any check, which is presented within the
presentation time limit but the sum of money which the drawer can use by drawing
checks at the payer is not enough to pay wholly the sum of money inscribed on
such check, shall be considered a check beyond the drawer's insolvency.
2. An organization or individual that draws a
check beyond its/his/her solvency and fails to perform the obligation to pay
wholly the recoursed sum of money to the beneficiary or the person having paid
the sum to the beneficiary shall be considered having intentionally drawn a
check beyond its/his/her solvency.
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a/ For the first-time violation, the payer shall
have to send a caution notice to the drawer;
b/ For the second-time violation, the payer
shall have to temporarily suspend the right to draw checks of the recidivist
for three months, not to supply blank checks to such person within the said
duration, and at the same time withdraw blank checks already supplied to the
recidivist;
c/ For the third-time violation, the payer shall
have to perpetually suspend the right to draw checks of the recidivist,
withdraw all blank checks already supplied to the recidivist, and at the same
time notify the name, address, identity card number (or equivalent papers
prescribed by law) and the sum of money in the check beyond the solvency of
such person to the State Bank.
4. The State Bank shall have to archive
information on names, addresses, identity card numbers (or equivalent papers
prescribed by law), sums of money in checks beyond the solvency of the
third-time violators and supply such archived information at requests of the
check-supplying organizations.
5. The check-supplying organizations, when
supplying checks, shall have to verify information on persons to be supplied
with checks archived at the State Bank, and refuse to supply checks to persons
banned from using checks or with the right to draw checks perpetually
suspended. The check-supplying organizations which violate these provisions
shall have to pay damage compensations to the concerned parties.
6. Recidivists in drawing checks beyond their
solvency who, when being requested by the check-supplying organizations to
return blank checks already supplied to them, fail to return and continue using
such checks, shall be considered intentionally using after having their right
to draw checks suspended. The payment service-providing organizations may
blockade accounts of violators and notify such to the functional agencies to
apply measures to withdraw such blank checks.
Article 48.- Handling
of violations
1. Organizations and individuals that violate
the provisions of this Decree shall, depending on the nature and seriousness of
their violations, be administrative sanctioned, have their right to draw checks
temporarily or perpetually suspended, have to make damage compensations or be
examined for penal liability according to provisions of law.
2. The payment service-providing organizations
which violate the provisions of this Decree shall, depending on the nature and
seriousness of their violations, have to pay damage compensations, be
administratively sanctioned or banned from supplying checks according to
provisions of law.
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IMPLEMENTATION
PROVISIONS
Article 49.-
Implementation effect
1. This Decree takes effect as from April 1,
2004.
2. The Government's Decree No. 30/CP of May 9,
1996 promulgating the Regulation on issuance and use of checks and Decree No.
173/1999/ND-CP of December 7, 1999 amending Article 5 of Decree No. 30/CP
promulgating the Regulation on issuance and use of checks shall cease to be
effective as from April 1, 2004.
Article 50.- Guiding
responsibility and implementation responsibility
1. The State Bank of Vietnam shall have to guide
the implementation of this Decree.
2. 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 centrally-run
cities shall have to implement this Decree.
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