Name
Cheque
Introduction
It is a kind of bill issued by the drawer, who entrusts the bank which deals with cheque deposit business to unconditionally pay a certain amount of money to the payer or the bearer upon presentation. There are three types of cheque, namely cash cheque, transfer cheque and ordinary cheque. The period of presentment for payment is ten days. The derivative of cheque consists of cheque loading, cheque withholding and nationwide cheque image exchange.
Features
1. It can be used in a wide range with many optional business varieties;
2. It provides simple procedures and timely fund settlement, as well as decreases the cash flow;
3. It can be collected by means of payer's active payment and/or payee's consignment collection.
Scope of Application
It is applicable to both corporate customers and individual customers for domestic cross-city or inter-city account settlement of various payments.
Process
1. The drawer (payer) issues a cheque and affixes the seal which is reserved in bank;
2. Within the period for payment, the bearer (payee) may endorse and transfer this cheque to the endorsee. During the endorsement and transfer, the endorsee's name and endorsement date should be written by the payee or endorser in the designated area with signatures and seals affixed on it;
3. The procedure of consignment collection or presentment for payment should be conducted before the maturity of the cheque.
(1) Consignment collection conducted by the payee. The payee presents the account-opening bank with the cheque and bank deposit receipt of three pages for the procedure of consignment collections; then the receiving bank will transfer the payment to the payee's account upon the payment of the paying bank.
(2) Active payment conducted by the payer. The payer presents the account-opening bank with the cheque and bank deposit receipt of three pages for the procedure of presentment for payment; then the receiving bank will credit the payment upon the examination and approval on cheque carried out by the paying bank.
Kind Reminder
1. The validity period of the cheque is ten days; please cash the cheque in the bank before the expiry day.
2. The bearer should properly keep the cheque and avoid damages on the surface due to breakage or water scrubbing.
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