Decision No. 146-NH/QĐ On the issuance of the Rules for Payment by Fixed Amount Cheques

Pursuant to …;

NUMBER 146/NH-QĐ ON November 1, 1989

REGARDING THE ISSUANCE OF REGULATIONS ON PAYMENT BY FIXED AMOUNT CHEQUES

CHAIRMAN OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the Organization of the Council of Ministers dated July 4, 1981;

Pursuant to Decree No. 53-HĐBT dated March 26, 1988 of the Council of Ministers on the organization of the State Bank of Vietnam;

Pursuant to Decree No. 80-HĐBT dated May 27, 1987 of the Council of Ministers on the supplementation of regulations on non-cash payments through banks,

DECISION:

Article 1. - The regulations on payment by fixed amount cheques are hereby promulgated together with this decision.

Article 2. - This decision shall take effect from January 1, 1990, replacing previous regulations on fixed amount cheques; guarantee cheques issued pursuant to Decision No. 5-NH/QĐ dated June 24, 1987; Directive No. 10-NH/CT dated January 21, 1989; Directive No. 138-NH/CT dated October 10, 1989 of the Chairman of the State Bank of Vietnam and other guiding documents related to business operations issued by the Central State Bank of Vietnam regarding the above issue.

Article 3. - All Comrades Heads of Office, Heads of units under the Central State Bank, General Directors of specialized commercial banks, Branch Directors of the State Bank, specialized commercial banks in regions, provinces, cities, special zones, districts, towns, and Representatives of the State Bank are responsible for implementing this decision.

RULES

PAYMENT BY FIXED AMOUNT CHEQUES

(Pursuant to Decision No. 146-NH/QĐ dated November 1, 1989

of the Chairman of the State Bank of Vietnam)

Article 1. - Fixed amount cheques are a type of payment cheque exclusively printed and sold by the State Bank of Vietnam for entities and individuals to use within the scope of the amount deposited in a separate account at the bank. Fixed amount cheques can only be settled by transfer, not in cash. The issuer pays directly to the entity or individual named on the cheque, and it cannot be transferred to a third party.

Article 2- Fixed amount cheques apply to agencies, enterprises, economic organizations, armed forces units, and individuals belonging to various economic sectors that have settlement accounts at the State Bank, specialized commercial banks under the State Bank system (hereinafter referred to as account holders) for the purpose of paying goods, services, and debts nationwide. For customers of banks outside the State Bank system, the application of fixed amount cheques will be separately guided by the Chairman of the State Bank.

Article 3. - Fixed amount cheques are determined on each cheque pre-printed with amounts of 500 thousand; 1 million; 2 million; 5 million; 10 million; 20 million; 50 million and 100 million Vietnamese dong. Printing and putting into use will be carried out gradually according to actual needs.

Article 4. - The validity period for use and payment of a fixed amount cheque is six months from the date of receipt from the bank opening the account to the date of submission to the bank serving the seller. After this period, the account holder must bring the cheque to the bank opening the account to exchange for new cheques or return them to the bank.

Article 5. - A valid cheque is a cheque issued by the State Bank of Vietnam. All elements on the cheque must be fully and clearly filled out, not written in red ink or pencil, not erased or altered; the signature of the person holding the cheque when purchasing and when paying must match; still within the payment validity period. Cheques missing or contravening any of these provisions are considered invalid cheques.

Article 6. - Account holders wishing to use cheques must comply with the following conditions:

a) Open a "Fixed Amount Cheque Deposit" account and transfer funds or deposit cash into this account to be credited for the issuance of cheques corresponding to the amount. The deposited funds do not earn interest.

b) Register the signatures of the account holder and authorized persons signing cheques at the bank opening the account.

Article 7. - The account holder is responsible for losses due to lost cheques or violations of the regulations on payment by fixed amount cheques. If serious consequences occur, criminal responsibility will be pursued according to the Penal Code of the Socialist Republic of Vietnam.

Article 8. - The recipient of the cheque must carefully check to detect and immediately exclude invalid cheques. If counterfeit cheques are found, the recipient must immediately report to the head of the unit to take timely measures to apprehend the criminals.

Article 9. - The masterminds and perpetrators of counterfeit cheques, alterations, destruction of cheques to cover up, and illegal trading of cheques causing damage to state assets, collectives, and citizens will be prosecuted under the Penal Code.

Article 10 - The responsibilities of the bank in organizing the payment of fixed amount cheques:

a) Organize strict management and monitoring of the printing, sale, storage, and preservation of fixed amount cheques like cash.

b) Detect and refuse to pay invalid cheques. If counterfeit cheques are discovered, the bank must immediately implement necessary measures to apprehend or track down the criminals.

c) Organize prompt and accurate payment of valid cheques submitted by customers to the bank.

d) In case of delayed payment causing capital loss to the cheque beneficiary, the bank must pay a penalty according to the current late payment rate and transfer it to the beneficiary. The penalty is deducted from the retained profit of the relevant bank branch.

Article 11. - In cases where the deposited funds are not used or not fully utilized, the account holder may request the bank to transfer the remaining deposited funds back to their settlement account. The account holder must return unused cheques to the bank. If the account holder loses cheques, the transfer of deposited funds back to the settlement account can only be executed after a six-month period from the expiry date of the fixed amount cheque validity period specified in Article 4.