Circular No. 07/TT-NH1 guiding the implementation of the regulations on the issuance and use of cheques issued together with Decree No. 30 dated May 9, 1996 of the Government.

CIRCULAR

Guidelines for implementing the Cheque Issuance and Usage Regulation issued together with Decree No. 30 dated May 9, 1996 of the Government.

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On May 9, 1996, the Government issued Decree No. 30/CP promulgating the Cheque Issuance and Usage Regulation (hereinafter referred to as the Regulation). The Governor of the State Bank of Vietnam hereby provides guidelines for the implementation of this Regulation as follows:

Part I

GENERAL PROVISIONS

1. The cheques specified in the Regulation are those commonly used by individuals and legal entities.

2. The terms in this Regulation shall be understood as follows:

2.1. Account holder means the person whose name appears on the account opening form for a current deposit account and who is the owner or representative of the owner of the amount recorded on that account.

- Individual account holder refers to the individual whose name appears on their own current deposit account opening form according to the regulations of the State Bank of Vietnam.

- Corporate account holder refers to the legal representative of a corporate entity whose name appears on the corporate entity's current deposit account opening form according to the regulations of the State Bank of Vietnam.

2.2. Cheque issuer means the account holder or a person authorized by the account holder in accordance with the law on authorization.

2.3. Cheque beneficiary means the person entitled to the amount recorded on the cheque. For a named cheque, it is the person whose name appears on the cheque; for an unnamed cheque, it is the person holding the cheque.

2.4. Cheque transferor means an individual or the legal representative of a corporate entity whose name appears on the cheque transferring the right to benefit from the cheque to another person.

2.5. Payment unit means the unit holding the current deposit account of the account holder, permitted to perform payment services or tasks pursuant to Article 2 of Decree No. 91/CP dated November 25, 1993 of the Government on organizing non-cash payments and Article 1 of Decision No. 144/QĐ-NH1 dated June 30, 1994 of the Governor of the State Bank of Vietnam regarding conditions for implementing non-cash payments for people's credit funds.

2.6. Collection unit means a unit within or outside the payment unit system, permitted to perform payment services or tasks, receiving cheques submitted by the beneficiaries for collection.

2.7. Named cheque means a cheque bearing the name, address of an individual or the name, address of a corporate entity as the beneficiary. A named cheque must clearly record the name, address of an individual or the name, address of a corporate entity when transferred.

2.8. Unnamed cheque means a cheque without the name of an individual or the name of a corporate entity as the beneficiary. The issuance and use of unnamed cheques will only be applied when technical and legal conditions are met, and further guidance will be provided by the Governor of the State Bank of Vietnam.

3. Responsibility for cheques: Both the cheque issuer and the cheque transferors bear responsibility for the cheques. This responsibility includes the obligation to pay the amount recorded on the cheque and joint liability to resolve complaints or lawsuits when the cheque is refused payment.

4. The payment validity period of a cheque is fifteen days from the date of issuance until the cheque is submitted to the payment unit or collection unit. This period includes Sundays and public holidays. If the last day of the period falls on a Sunday or public holiday, the period will be extended to the next working day following the Sunday or public holiday.

5. Scope of cheque payment in the near term:

- Cheques for payment between customers with current deposit accounts at the same unit or different units but within the same credit organization system, National Treasury;

- Cheques for payment between customers with current deposit accounts at different credit organization systems, National Treasury will only apply in cases where these units participate in clearing transactions within the province or city.

Credit organizations, National Treasury shall inform their customers of the correct scope of application.

Part II

FORM AND CONTENT OF THE CHEQUE

1. The form of the cheque must be designed according to the uniform model prescribed by the State Bank of Vietnam in Appendix No. 1 attached to this Circular. The content of the cheque must be printed and written in Vietnamese.

1.1. Elements on the cheque include:

a) The word "Cheque" printed in capital letters;

b) Cheque number: printed both on the cheque and the cheque stub;

c) Payment instruction printed in the form: "Request to pay to:...";

d) Cheque beneficiary:

+ If the cheque beneficiary is a legal entity, then the name, address, account number, and name of the account-holding unit of the legal entity should be recorded.

+ If the cheque beneficiary is an individual, then the name, address, account number, and name of the account-holding unit of the individual (if applicable) should be recorded.

e) Amount in figures and in words (see point 1, Section II, Part IV);

f) Cheque issuer:

- If the cheque issuer is a legal representative of a legal entity, then the name, address, and account number of the legal entity should be recorded;

- If the cheque issuer is an individual, then the name, address, and account number of the account holder should be recorded.

g) Name and address of the payment unit: printed or stamped in the upper right corner of the front side of the cheque;

h) Place, date, month of cheque issuance recorded in words, year of cheque issuance recorded in figures;

i) Signature, stamp (if any) of the cheque issuer (see points 3 and 4, Section II, Part IV).

1.2. A valid cheque must contain all elements and contents specified in point 1.1 above, without any erasures, alterations, additional entries regarding interest rates or payment conditions, and the amount in figures and in words must match.

1.3. A cheque eligible for payment is a cheque:

+ Valid;

+ Submitted within the payment validity period;

+ Not subject to a payment stop order;

+ The signature and stamp (if any) of the cheque issuer must match the registered sample at the payment unit;

+ Not issued beyond the authority stipulated in the authorization document;

+ The balance in the account holder's current deposit account sufficient to cover the cheque;

+ Continuous endorsements (if any) for named cheques.

2. For payment units serving foreign customers, in addition to Vietnamese, English may also be printed below Vietnamese; the font size of English must be smaller than that of Vietnamese.

3. The sample cheques of credit institutions and State Treasury must be approved by the Central Bank and kept on file at the approving entity. Credit institutions and State Treasury have the responsibility to notify other credit institutions, State Treasuries, and customers about the approved cheque samples. Subordinate units of credit institutions and State Treasuries must use their own system's cheque samples. Cheque samples not approved by the Central Bank are not permitted to circulate.

The printing of cheques by credit institutions and State Treasury shall be carried out in accordance with Decision No. 317/QĐ-NH2 dated November 10, 1995 of the Governor of the State Bank.

Old types of cheques (except for transfer cheques) will lose their validity upon the effectiveness of this Circular. However, old cheque sheets that were issued before the effectiveness of this Circular but have not yet expired their payment period will still be paid according to the previous regulations.

4. A cheque is used to withdraw cash from a payment unit when there are no two intersecting parallel lines in the upper left corner or the word "transfer" is not present on the front of the cheque. A cheque is used for transfer when there are two intersecting parallel lines in the upper left corner or the word "transfer" is present on the front of the cheque.

Part III

RIGHTS AND OBLIGATIONS OF THE PARTIES ISSUING AND USING CHEQUES

I. RIGHTS AND OBLIGATIONS OF THE CHEQUE ISSUER

1. The cheque issuer must issue cheques in accordance with regulations and ensure sufficient funds in the deposit account for payment when the cheque is presented at the payment unit. If there are insufficient funds in the deposit account leading to the rejection of the cheque, the cheque issuer shall be responsible for paying the cheque and any fines and costs arising from complaints and lawsuits.

2. In cases where issued cheques are rejected for payment:

- If the cheque issuer is an individual who has died or gone missing, the cheque payment will be handled according to the law; if the individual cheque issuer is declared incapacitated or partially incapacitated by the court, the cheque payment will be made by the guardian or according to the court's decision.

- If the cheque issuer is a representative of a legal entity, and the legal entity is declared bankrupt or dissolved, the cheque payment will be handled according to the law on bankruptcy or dissolution.

- If the cheque issuer, whether an individual or a legal entity, has had their account frozen, the cheque payment will be made according to the decision of the competent state authority.

II. RIGHTS AND OBLIGATIONS OF THE CHEQUE HOLDER

1. Within the payment validity period of the cheque, the cheque holder must submit a list and the cheque to the payment unit or collection unit to request payment.

If the cheque holder cannot submit the cheque within the payment period due to force majeure, they must submit the cheque immediately to the payment unit or collection unit after the force majeure ends, accompanied by a written confirmation of the force majeure cause from the People's Committee of the locality where they reside, work, or have their headquarters. The confirmation document is prepared according to the model attached as Appendix 2 to this Circular.

2. The first cheque holder has the right to request the cheque issuer to provide them with the cheque that has been guaranteed by the payment unit.

3. The cheque holder has the right:

- To transfer the cheque to another person if the cheque does not contain the phrase "not allowed to transfer" or "no further transfer" in the section specifying the transfer conditions;

- To terminate subsequent transfers by writing the phrase "no further transfer" before their signature in the section specifying the transfer conditions before transferring the cheque to the next holder.

4. In case the cheque is rejected for payment, the cheque holder has the right to request the payment unit to confirm the reason in writing according to the model attached as Appendix 3 to this Circular.

III. RIGHTS AND OBLIGATIONS OF THE PAYMENT UNIT

1. When receiving a cheque submitted for payment, the payment unit must check the payment conditions of the cheque.

If the cheque meets the payment conditions, the payment unit is responsible for making the payment immediately. If the cheque is received after the end of business hours, the payment unit is responsible for making the payment at the beginning of the next working day. If the payment is delayed due to the payment unit's fault, causing damage to the cheque holder, the payment unit must compensate the cheque holder. The compensation amount is calculated based on the amount stated on the cheque and the number of days delayed, with the interest rate being the maximum short-term lending rate set by the State Bank at the time of payment. The delay period starts from the date the payment unit receives the cheque.

2. In cases where multiple cheques are submitted simultaneously to demand money from one account, and there are insufficient funds in the account to pay all the cheques, the order of cheque payments will be determined based on the cheque issuance number, with cheques having smaller serial numbers being paid first.

3. The payment unit has the right to reject payment and return the cheque to the collection unit or the cheque holder in cases where the cheque does not meet the payment conditions.

When rejecting a cheque, a refusal to pay notice must be filled out according to the correct model attached as Appendix 3 to this Circular.

4. The payment unit must print the attached appendices of this Circular in advance to provide to customers who need to use them.

IV. RIGHTS AND OBLIGATIONS OF THE COLLECTION UNIT

1. Upon receiving a cheque from the cheque holder, the collection unit must verify the legality of the cheque and its validity period.

2. The collecting unit must maintain a record of all cheques received for collection. Upon receipt and verification of the cheque, the collecting unit shall immediately transfer the cheque to the clearing unit. If the cheque is received after the business hours with customers, the collecting unit must transfer the cheque to the clearing unit at the start of the next working day. In case of delayed transfer of the cheque due to the fault of the collecting unit causing damage to the beneficiary, the collecting unit shall compensate the beneficiary; the compensation amount shall be calculated based on the amount stated on the cheque and the number of days delayed at the overdue interest rate ceiling for short-term loans as prescribed by the State Bank of Vietnam at the time of transferring the cheque. The period of delayed transfer starts from the date the customer submits the cheque until the date the collecting unit transfers the cheque to the clearing unit.

3. In cases of force majeure preventing immediate submission of the cheque, upon cessation of such circumstances, the collecting unit must submit the cheque to the clearing unit along with a confirmation of the force majeure issued by the People's Committee of the locality where the collecting unit is located, in accordance with the model specified in Appendix No. 2 attached hereto.

4. The collecting unit has the right to refuse to collect and return the cheque to the beneficiary in the following cases:

- The cheque is not valid;

- The cheque exceeds its payment validity period without a certificate of force majeure as stipulated in Point 1, Section II, Part III of this Circular.

5. The collecting unit may charge service fees for cheque collection services provided to customers according to regulations of the State Bank of Vietnam.

6. The collecting unit must prepare necessary appendices attached to this Circular in advance to meet customer needs.

Part IV

PROCEDURES FOR THE ISSUE AND USE OF CHEQUES

I. PROCEDURES FOR SELLING CHEQUES

1. When there is a need to use cheques, the account holder (or a person authorized by the account holder) must submit a request for cheque purchase to the clearing unit.

The purchaser of the cheque must present their identification card, passport, or military, worker, or defense employee identification card together with the request for cheque purchase for the clearing unit to process the sale of cheques.

2. The clearing unit shall only sell cheques to customers who have opened a current deposit account with the unit.

- The clearing unit shall check the request for cheque purchase and the identification card, passport, or military, worker, or defense employee identification card of the person purchasing the cheques. The clearing unit must print or stamp the name, address, and code of the clearing unit; print, emboss, or write the name, address, and account number of the account holder on all cheque sheets before delivering them to the customer. The maximum number of cheque sheets sold to individuals is one book of cheques, and to legal entities is three books of cheques (each book contains ten cheque sheets).

- The clearing unit shall maintain a record of the name, address, and account number of the cheque purchaser, the quantity and serial number of the cheques sold, and require the customer to sign for receipt.

- The clearing unit is responsible for printing necessary instructions on the cover of the cheque book according to Appendix 1b attached hereto.

- The clearing unit is responsible for guiding customers on how to use cheques and matters to note while using cheques, and explaining any queries raised by customers.

3. Upon receiving cheques, customers must count the number of cheque sheets, check the serial numbers, names, and account numbers recorded on each sheet. If there are errors, they must report to the clearing unit to exchange for other cheque sheets.

If customers fail to check and count the cheques, resulting in errors or missing cheque sheets leading to misuse of the cheques, the account holder shall bear full responsibility for any losses incurred.

II. PROCEDURES FOR ISSUING CHEQUES

1. When issuing cheques, the issuer can only issue payment cheques within the scope specified in Point 5, Part I of this Circular and must:

- Write the cheque with ink that is difficult to erase, not with pencil or red ink, and no corrections or erasures are allowed.

- Enter the amount in the designated place. The amount in words and figures must match.

- Record the date, month, year of issuance, amount, and name, address, and account number (if available) of the payee on the cheque stub, which must correspond to the cheque.

- Write the first letter of the amount in words in uppercase and close to the beginning of the first line, without leaving spaces between letters or adding characters between two adjacent letters already written.

2. Delegation of authority to issue cheques:

- Only the account holder may delegate another person to issue cheques on their behalf. The delegated person cannot further delegate this authority to another person.

- For individual account holders, delegating another person to issue cheques on their behalf must comply with legal provisions. Delegation of authority to issue cheques can be done for a single issuance or for a specific period. The delegation must be made according to the form specified in Appendix No. 4 attached hereto and must be sent to the clearing unit along with a sample of the signature of the delegated person.

- For legal entities, the delegation must be carried out simultaneously with the registration of the seal and signature samples used for the account. The delegated person using the account is also the person issuing cheques on behalf of the account holder. In cases where the delegated persons are absent and the account holder temporarily delegates another person to issue cheques, the delegation must be made according to the specified form (Appendix No. 4 attached hereto) and must be sent to the clearing unit, registering the signature sample of the delegated person.

3. In cases where a legal entity has a chief accountant, the cheque must bear the signature of the chief accountant (or the person delegated by the chief accountant). In cases where a legal entity does not have a chief accountant or has not registered the signature of the chief accountant, the issuer of the cheque must write "none" under "chief accountant."

The signatures and seals on the cheque must match the samples registered with the clearing unit.

4. The account holder shall not sign and stamp on cheque sheets that are not fully completed (blank cheques); in cases where blank cheques are misused, the account holder shall bear all resulting losses.

5. In the case of issuing a cheque solely for payment by transfer, the issuer must draw two intersecting parallel lines or write or stamp the word "transfer" at the top left corner of the front side of the cheque before delivering it to the beneficiary.

6. In the case of issuing a non-transferable cheque, the issuer must record the phrase "not transferable" on the back of the cheque, in the section designated for transfer.

7. Guarantee of a cheque:

a) When there is a need for guarantee of a cheque, the issuer establishes and submits two copies of the "request for cheque guarantee form" according to the model specified in Appendix No. 5 attached to this Circular and the cheque that has been fully completed with all elements, bearing sufficient signatures and stamps (if any) on the front side of the cheque.

b) The clearing unit will examine and compare the "request for cheque guarantee form" and the cheque, the account balance of the issuer, and if the conditions are met, proceed as follows:

- Record the debit and credit account numbers on each copy of the "request for cheque guarantee form."

- Record the date, month, year, and sign and stamp of the clearing unit in the designated area for guarantee on the front side of the cheque.

- Deliver the completed guaranteed cheque to the customer.

- Process the copies of the "request for cheque guarantee form":

+ One copy serves as the debit entry voucher for the source account of the account holder, simultaneously recording a credit entry to the deposit account to ensure cheque payment by the account holder.

+ One copy serves as the debit notice given to the cheque issuer.

c) Once the cheque has been guaranteed, the clearing unit is responsible for ensuring the payment of the amount stated on the cheque.

8. Upon receiving a cheque, the beneficiary must check the validity of the cheque.

III. PROCEDURES FOR TRANSFERRING A CHEQUE

1. The transfer of a cheque must be carried out within the payment validity period of the cheque.

2. When transferring a named cheque payable by transfer, the transferrer must record the name, address, account number, and name of the financial institution holding the account (if any) of the transferee, record the date, month, year of transfer, and sign and stamp (if any) on the back of the cheque (in the section designated for transfer).

When transferring a named cheque payable in cash, the transferrer, in addition to recording the above elements, must also record the number, issuance date, and place of issuance of the identity card or passport or military identification of the transferee; record the date, month, year of transfer and sign on the back of the cheque (in the section designated for transfer).

IV. PROCEDURES FOR SUBMITTING A CHEQUE

1. In the case of cheque payment by transfer:

To be paid the amount on the cheque, the cheque beneficiary must establish three copies of the cheque submission form (model in Appendix No. 6 attached to this Circular) for each clearing unit (each clearing unit prepares a separate cheque submission form) along with the cheques to submit to the collecting unit or clearing unit within the payment validity period of the cheques.

When preparing the cheque submission form, the beneficiary must clearly fill in all elements required on the form without making corrections or erasures.

The beneficiary may submit the cheque to the clearing unit or collecting unit (where they have an account). If there is no account, the beneficiary may submit the cheque to the clearing unit or collecting unit in the province or city where they are registered to reside.

1.1. In the case where the beneficiary submits the cheque to the clearing unit, the following procedures apply:

Upon receipt of three copies of the cheque submission form along with the cheques submitted by the beneficiary, the clearing unit will check:

+ The payment conditions of the cheque according to point 1.3, part II of this Circular.

+ Compare and ensure that the number of cheques and amounts on the cheques match the cheque submission form.

+ Sum up the total amount on the form, the amount in words must match the amount in figures.

If the cheque meets the payment conditions, the clearing unit will accept the cheque from the beneficiary (the acceptance of the cheque between the beneficiary and the clearing unit must be recorded in a book of receipts and delivery vouchers).

If the cheque submission form contains errors or the cheques are invalid, the clearing unit must return them to the submitter and request the preparation of a new cheque submission form that matches the valid cheques.

1.2. In the case where the beneficiary submits the cheque to the collecting unit, the following procedures apply:

Upon receipt of three copies of the cheque submission form along with the cheques submitted by the beneficiary, the collecting unit must check:

+ The validity of the cheques according to point 1.2, part II of this Circular.

+ The validity period of each cheque.

+ The continuity of the chain of endorsement signatures (if any) on each cheque.

+ Compare and ensure that the number of cheques and amounts on the cheques match the cheque submission form.

+ Sum up the total amount on the form, the amount in words must match the amount in figures.

If there are no errors and the collecting unit agrees to collect, it will sign in its record of cheque delivery and immediately transfer the cheque to the clearing unit as stipulated in point 2, sub-section IV, part III of this Circular.

1.3. In the case where the beneficiary does not have an account, they should request the clearing unit or collecting unit to open an account for them depending on whether the cheque was submitted to the clearing unit or collecting unit prior to submitting the cheque as stipulated in points 1.1 and 1.2 of this sub-section.

2. The beneficiary can only withdraw cash from a cheque at the clearing unit. The beneficiary must record their full name, ID number (or passport or military identification), and the name of the person receiving the cash on the back of the cheque in the section designated for cash withdrawal. The procedure for submitting a cheque for cash withdrawal is carried out according to current regulations. The clearing unit checks the payment conditions of the cheque according to point 1.3, part II of this Circular. If the conditions are met, cash withdrawal is allowed; otherwise, the cheque is immediately returned to the customer.

V. PROCEDURES FOR PAYING A CHEQUE

1. If the cheque is payable within the same system (within the same locality or different provinces/cities), the procedures for paying the cheque shall be specifically guided and implemented by the General Directors of credit organizations and the State Treasury General Director for their respective units and customers, ensuring timely, quick, accurate, and safe payment of cheques while adhering to current regulations.

2. In case of payment by check between entities in different systems within the same province or city and involving clearing transactions, the clearing process shall be applied in accordance with the regulations of the State Bank.

Part V

HANDLING LOST CHECKS

1. The issuer of a check must immediately notify the paying entity and the beneficiary (if recorded on the check) upon losing the check. Such notification shall only have legal validity if sent in writing according to the prescribed form (Annex No. 7 attached to this Circular). The time point at which the paying entity receives the lost check notification shall be determined as follows:

- It is the time point when the paying entity receives the lost check notification delivered through the post office, based on the receipt book of the paying entity with the post office. If the document is sent via registered mail, the envelope must clearly state "Lost Check Notification" for the mailroom staff to promptly forward it to the accounting department;

- It is the time point when the paying entity confirms in the designated place in Annex No. 7 attached to this Circular, if the person who lost the check directly hands over the notification to the paying entity.

2. The beneficiary of a check must immediately notify the paying entity and the issuer upon losing the check. Such notification shall only have legal validity if sent in writing according to the prescribed form (Annex No. 7 attached to this Circular). The time point at which the paying entity receives the notification shall be determined as in Point 1, Section V above.

3. Upon receiving a lost check notification, the paying entity must immediately verify whether the reported check has been paid. If the check has not yet been paid, the paying entity shall be responsible for issuing an instruction to its employees to stop payment on that check and shall bear responsibility for compensating the customer if the check is fraudulently used to withdraw funds after the lost check notification has been received. If the time point at which the paying entity receives the lost check notification is after the time point at which the check was already paid, the paying entity shall immediately notify the person who lost the check, and the person who lost the check shall be responsible for any damages caused by the loss of the check.

4. The person reporting the lost check shall be responsible for the truthfulness of the lost check notification. If it is discovered that the lost check notification is not truthful, the person reporting the lost check may be subject to administrative penalties or other legal actions depending on the severity of the violation.

5. The paying entity shall properly store blank checks in accordance with the regulations governing the storage of important seals and shall be responsible for any fraudulent use resulting from the loss of blank checks.

Part VI

COMPLAINTS AND LAWSUITS

I. COMPLAINTS

Upon receiving a rejected check, the beneficiary has the right to file a complaint according to the following provisions:

1. Prepare a complaint form according to the prescribed form in Annex No. 8 attached to this Circular; deliver or send the complaint form along with a copy of the check rejection notice issued by the paying entity to those responsible for the check to demand payment, possibly setting a deadline for resolution. The check beneficiary must keep the original check rejection notice to initiate a lawsuit if the complained party does not meet their demands.

2. The time point of sending the complaint shall be determined as follows:

If delivered directly, the sender must request the recipient to sign for confirmation, which will serve as the time point of sending the complaint.

If sent via registered mail, the time point of sending the complaint shall be determined based on the postmark of the sending location.

3. The recipient of the complaint shall be responsible for responding to the sender of the complaint. If accepting the complaint, they must immediately pay the amount stated on the check to the complainant and may require the complainant to return the check and the original check rejection notice to conclude their responsibility regarding the check or to sue previous check endorsers (if any).

4. In cases where a check is rejected due to expiration of its payment validity period, although the check beneficiary loses the right to file a complaint, the check still retains its value as a basis for the beneficiary to directly demand payment from those responsible for the check or to initiate a lawsuit before the court if those responsible for the check do not pay.

II. LAWSUITS

In cases where complaints are not resolved, the check beneficiary has the right to sue those responsible for the check to demand payment according to the following provisions:

1. The check rejection notice issued by the paying entity and the check itself are evidence in lawsuits arising from rejected checks. The check beneficiary has the right to sue before the court. Those being sued can be either or all of the following:

+ The check issuer;

+ Previous check endorsers (if any).

Check-related lawsuits shall be resolved by the court in accordance with the law.

2. The paying entity has the right to sue individuals or legal entities before the court for acts causing damage to them, demanding full compensation for all damages suffered by the paying entity from illegal beneficiaries.

Part VII

PROHIBITED ACTS AND PENALTIES FOR VIOLATIONS

Organizations and individuals violating prohibitions stipulated in Article 40 of the Regulations shall be subject to penalties according to current laws, depending on the nature and degree of the violation.

Specifically, for issuing checks exceeding the account balance, the paying entity shall handle it as follows:

- For the first violation, a fine shall be imposed according to the regulations on contract violations, accompanied by a reminder letter to prevent recurrence.

- For the second violation, in addition to the fine for the first violation, the right to issue checks shall be suspended for six months, and all unused checks of the organization or individual committing the violation shall be recalled. Only after obtaining a commitment from the account holder not to reoffend can the right to issue checks be restored. A list of organizations and individuals prohibited from issuing checks must be communicated within the commercial banking system. If there is a recurrence, the prohibition on issuing checks shall be permanent.

Part VIII

IMPLEMENTING PROVISIONS

1. This Circular takes effect from April 1, 1997.

The provisions on "Payment by Check" in Decision No. 22/QĐ-NH1 dated February 21, 1994, issued by the Governor of the State Bank regarding the rules for non-cash payments and Circular No. 08/TT-NH2 dated June 2, 1994, issued by the State Bank guiding the implementation of the rules for non-cash payments; Decision No. 105/QĐ-NH1 dated April 10, 1995, issued by the Governor of the State Bank amending the personal check model in the "Rules for Non-Cash Payments," shall cease to be effective.

The provisions prohibiting the account holder from being named as an individual authorized in point 1.2.b, Section I, Part I of Circular No. 08/TT-NH2 dated June 2, 1994, shall not apply to the issuance of cheques.

The provisions regarding the procedures for issuing and clearing transfer cheques in Section B, Part II of the Non-Cash Payment Rules issued together with Decision No. 22/QĐ-NH1 and in Section B, Part II of Circular No. 08/TT-NH2 dated June 2, 1994 of the State Bank of Vietnam titled "Guidelines for Implementing Non-Cash Payment Rules" remain in effect.

2. Heads of Departments and Directorates at the State Bank of Vietnam, Governors of Provincial and Municipal Branches of the State Bank of Vietnam are responsible for organizing the implementation and supervising the execution by credit institutions in accordance with the regulations of this Charter and the guidance provided in this Circular. General Directors of State-owned Commercial Banks, Investment and Development Banks, Commercial Joint Stock Bank Directors, General Directors of Joint Venture Banks, Foreign Bank Branch Managers, General Directors of National Treasury, and other credit institutions are responsible for organizing the implementation of this Circular.

Any difficulties encountered during implementation should be promptly reported to the State Bank of Vietnam for guidance and resolution.

3. Any supplements or amendments to this Circular shall be decided by the Governor of the State Bank of Vietnam.