Decision No. 30/2006/QĐ-NHNN Issuing the Regulation on the Supply and Use of Checks

Pursuant to …;

Issuing the Rules on Supplying and Using Checks

_________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Based on the Law on Credit Organizations 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;

Based on the Law on Transferable Securities 2005;

Based on Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Head of the Payment Department.

Pursuant to …;

Article 1. This Decision promulgates the "Rules on Supplying and Using Checks" attached hereto.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette. Circular No. 05/2004/TT-NHNN dated September 15, 2004 of the State Bank of Vietnam guiding the implementation of certain provisions of Decree No. 159/2003/NĐ-CP dated December 10, 2003 on supplying and using checks shall cease to be effective.

Article 3. The Heads of the Office, the Head of the Payment Department, the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally governed cities, Chairmen of management boards, General Directors (Directors) of organizations providing payment services, organizations and individuals using checks and related to the use of checks are responsible for implementing this Decision./.

RULES ON SUPPLYING AND USING CHECKS

(Attached to Decision No. 30/2006/QĐ-NHNN dated July 11, 2006

of the Governor of the State Bank of Vietnam)

PART I
GENERAL PROVISIONS

Article 1. Scope of regulation, subjects of application:

2. Applicability:

These Rules prescribe certain contents regarding the activities of supplying and using checks and the procedures for supplying, controlling, circulating, processing documents, and accounting related to check payments through organizations providing payment services operating within the territory of Vietnam.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Organizations supplying checks and participating in the payment process, including: the State Bank of Vietnam; state treasuries; commercial banks, development banks, investment banks, policy banks, cooperative banks, and other types of banks; people's credit funds; other organizations that are not credit institutions permitted by the State Bank of Vietnam to supply, pay, or collect checks.

b) Organizations and individuals using checks and related to the use of checks, including: the issuer, the transferor, the transferee, the guarantor, the guaranteed party, the beneficiary, the legal representative or authorized representative of the above parties, and other parties related to the use of checks.

Article 2. Issuing and Paying Checks with Foreign Currency Amounts

1. Issuing foreign currency checks:

Checks are issued with amounts payable in foreign currency as prescribed by laws on foreign exchange management.

2. Paying foreign currency checks:

a) Checks payable in foreign currency as prescribed in Clause 1 of this Article shall be paid in the amount stated on the check in foreign currency when the final beneficiary is permitted to receive foreign currency according to laws on foreign exchange management.

b) Checks payable in foreign currency but where the final beneficiary is not permitted to receive foreign currency according to laws on foreign exchange management, the amount stated on the check shall be paid in Vietnamese Dong at the foreign exchange rate published by the State Bank of Vietnam at the time of payment or at the foreign exchange trading rate published by the bank performing the payment at the time of payment (if applicable).

Article 3. Obligations of the Drawer

1. Ensuring sufficient payment capacity to pay the full amount recorded on the check to the beneficiary at the time the check is presented for payment within the presentation period. The payment capacity may be the balance in the drawer's payable account; or the balance in the payable account plus the overdraft limit that the drawer is permitted to use according to the agreement with the drawee.

2. Issuing checks in accordance with the provisions of Article 10 of this Regulation. In case the check is established incorrectly due to the drawer's fault, causing the beneficiary to be refused payment, the beneficiary has the right to request the drawer to issue another check to replace it. The drawer shall be obliged to meet this request of the beneficiary on the same day requested or the next working day following the request.

3. In case the check is refused payment due to insufficient payment capacity of the check, the drawer must unconditionally refund the amount claimed on the check.

Article 4. Claim Due to Non-Payment of Check

1. In cases where the check is refused payment in whole or in part of the amount recorded on the check as stipulated by this Regulation, the beneficiary has the right to claim the lawful amount they are entitled to. The object, amount, method, and procedures for claims shall be applied similarly according to the provisions from Article 48 to Article 52 of the Law on Transferable Instruments.

2. A transferee who has paid money to the beneficiary has the right to recover from the issuer or the previous transferee.

Chapter II
CHECK SUPPLY

Article 5. Blank Check Form

Organizations supplying checks shall decide on the design of the blank check form they supply based on referring to the blank check form in Appendix 1.

To ensure that the check can be paid through the Central Clearing House of the State Bank of Vietnam or with the permission of the State Bank of Vietnam to operate, the paper for printing checks, the size of the checks, factors, and their positions on the blank check must be designed according to the conditions specified in Appendix 1 of this Regulation and specific technical standards of the Center (if any).

Article 6. Registration of Blank Check Form

1. Before printing blank checks according to a new model, organizations supplying checks must register the blank check form with the State Bank of Vietnam (Settlement Department). The registration dossier for the blank check form includes:

- A request for registration of the blank check form along with the design of the size, color, and detailed elements of the blank check;

- A certified copy of the operating license of the organization supplying checks (in case of initial registration).

2. The State Bank of Vietnam (Settlement Department) shall be responsible for examining and responding to organizations supplying checks regarding the blank check form within five working days from the date of receipt of the registration dossier for the blank check form of the organization supplying checks.

Article 7. Printing Blank Checks and Announcing the Blank Check Form

1. After the blank check form is accepted by the State Bank of Vietnam, the organization supplying checks proceeds to print blank checks. Before supplying blank checks to users, the organization supplying checks must send the printed blank check form to the State Bank of Vietnam (Settlement Department) for record keeping.

2. The supply organization may choose the printing location to sign a contract for printing blank checks based on its own responsibility to ensure technical factors and anti-counterfeiting factors of the blank checks supplied by itself.

3. The organization supplying checks is responsible for notifying relevant parties (including service providers participating in check collection services, the Central Clearing House, and service users) about its blank check form.

4. The organization supplying checks is responsible for specifying and agreeing with check users on the conditions and terms of using checks supplied by them, including:

a) Supplying a quantity of blank checks to customers based on ensuring suitability with the payment needs and reliability of each specific entity.

b) Establishing procedures and processes to ensure safety and define responsibilities of related parties in storing, preserving, circulating blank checks and checks during internal processing for payment within the organization supplying checks;

c) Specifying, guiding, and disseminating responsibilities in preserving blank checks and requirements in using checks for those supplied with blank checks.

Article 8. Procedures for Supplying Blank Cheques

1. When there is a need to use cheques, the account holder or the person authorized by the account holder shall submit a request for cheque supply to the cheque supplying organization.

2. Upon receiving the request for cheque supply, the cheque supplying organization shall be responsible for checking the conditions of the person requesting the cheque supply.

3. Before delivering blank cheques to customers, the cheque supplying organization must be responsible for printing, stamping, or pre-writing the contents of the following elements: cheque number, name of the payee, name of the cheque drawer; these elements may be derived from MICR (if available). In cases where the cheque supplying organization has specific regulations regarding the payment location, the payment location must be printed, stamped, or pre-written on the blank cheque form.

The cheque supplying organization has the right to print, stamp, or pre-write additional contents on the blank cheque if deemed necessary and to facilitate the user of the cheque.

4. The cheque supplying organization must open a register to track the name, address, and account number of the cheque recipient, the quantity and serial number (cheque series number, cheque number) of the cheques supplied to the recipient, and require the recipient to sign the register.

Article 9. Responsibilities of the Recipient of Blank Cheques

1. The recipient of cheques must count the number of cheques and verify the accuracy of the elements on the supplied blank cheques. If there are errors, they must immediately report to the cheque supplying organization to exchange for another cheque.

2. After receiving blank cheques from the cheque supplying organization, if any errors occur or the cheques are misused, the account holder must bear full responsibility for any resulting losses.

Chapter III
ELEMENTS OF THE CHEQUE AND DRAWING THE CHEQUE

Article 10. Contents on the Cheque and Drawing the Cheque

1. The cheque must be drawn on a blank cheque form provided by the payee; if the cheque is drawn on a blank cheque form not provided by the payee, the payee has the right to refuse payment of that cheque.

2. The elements on the cheque must be clearly printed or written with ink or ballpoint pen, not written with pencil or red ink, not altered or erased. The writing on the cheque must be in Vietnamese. In cases where the cheque contains foreign elements, the cheque may use a foreign language according to the agreement of the parties.

3. The designation of the beneficiary must be recorded in one of the three ways prescribed in Clause 1 of Article 60 of the Law on Transferable Instruments.

4. The amount must match both when written in figures and in words.

The amount in figures on the cheque is Arabic numerals: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9; a period (.) must be placed after thousands, millions, billions, trillions, quadrillion, quintillion; when writing the amount after the unit digit, a comma (,) must be placed after the unit digit.

The amount in words must be written clearly, the first letter of the amount in words must be capitalized and written at the beginning of the first line, without being written on separate lines or with spaces between letters, and no additional letters (on separate lines) can be added between two consecutive letters on the cheque.

5. The name of the payee is the name of the service provider organization or the bank branch or the organization providing payment services responsible for paying the amount recorded on the cheque according to the order of the drawer.

6. The payment location is the place where the cheque is paid and is determined by the payee. If the payment location is not indicated on the cheque, it is understood that the cheque is presented for payment at the business location of the payee.

7. The date of issue is the date recorded by the drawer on the cheque.

8. The signature of the drawer must be a handwritten signature directly on the cheque using ink or ballpoint pen according to the registered signature sample at the payee, accompanied by the name of the drawer and a seal (for cheques signed by representatives of organizations).

9. To specify that the amount on the cheque cannot be paid in cash but must be transferred to the account of the beneficiary, the drawer or the transferor writes or stamps the phrase "pay into account" on the front of the cheque immediately below the word "Cheque." This phrase is effective for any beneficiary of the cheque.

In cases where the cheque does not indicate the phrase "pay into account," the payee will pay the cheque to the beneficiary in cash if requested by the beneficiary.

10. To specify that the amount on the cheque can only be paid to a bank or to a beneficiary who has an account at the issuing bank, the drawer or the transferor draws two parallel diagonal lines on the cheque.

11. To specify that the amount on the cheque can only be paid to a specific bank or to a beneficiary who has an account at that bank, the drawer or the transferor draws two parallel diagonal lines on the cheque and writes the name of the designated bank between the two lines. A cheque with the names of two banks between the two diagonal lines is not payable unless one of the two banks named between the two diagonal lines is a collecting bank.

12. In cases where the cheque drawer is authorized by the account holder, the account holder must complete all notification, registration of signature samples, and limit setting procedures with the payee.

Chapter IV
TRANSFER AND COLLECTION OF CHEQUES

Article 11. Transfer of Cheques

1. In the case where a cheque is transferred by endorsement, the continuity of the chain of endorsements shall be demonstrated as follows: in the first transfer transaction of the cheque, the name of the endorser must be the name of the payee recorded on the front of the cheque; in the second transfer transaction of the cheque, the name of the endorser must be the name of the person who was endorsed in the previous transaction; and so forth until the final transfer transaction.

2. If the name of the endorser in any transfer transaction is not the name of the person who was endorsed in the immediately preceding transaction, then that chain of endorsements is not continuous.

3. The payee of a cheque that has been transferred through endorsements is the last person to be endorsed in the continuous chain of endorsements as provided for in Clause 1 of this Article.

The drawee, when paying a transferred cheque by endorsement, has the responsibility to check the continuity of the chain of endorsements to ensure that the amount on the cheque is paid to the correct payee.

Article 12. Collection of Cheques

1. To obtain payment of the amount on the cheque, the payee may transfer the cheque to a service provider organization (the collector) by endorsement to collect the cheque according to an agreement between both parties. The collector has the right to decide whether to make immediate payment to the endorser for collection or to make payment after receiving the result of the cheque's settlement from the drawee, based on their own responsibility for the cheque's payment capability and the ability to recover the amount on the cheque in the event the cheque is not paid.

2. In cases where it cannot be presented directly at the place of payment as prescribed, the collector may transfer the cheque to another collector, which is a service provider organization with whom they have an agency relationship according to an agreement between both parties, for the latter to present the cheque.

Chapter V
GUARANTEED CHEQUE PAYMENT

Article 13. Guaranteeing Payment of Cheques

1. To implement guaranteeing payment, the cheque must meet the following conditions:

a) It must be filled out completely and clearly with all elements as stipulated in Article 10 of this Regulation;

b) The drawer must have sufficient funds in their account to ensure the cheque's payment capability, or if there are insufficient funds in the account but the drawee agrees to allow the drawer overdraft up to a certain limit to ensure the cheque's payment capability;

c) The drawer requests the guaranteeing payment of the cheque.

2. The drawee may refuse to guarantee the payment of the cheque if the cheque does not meet one of the conditions specified in Clause 1 of this Article.

3. Procedures for guaranteeing payment of cheques:

a) In the case of using a deposit account to secure cheque payments:

The drawer of the cheque establishes and submits to the drawee a "Payment Authorization" (with the number of Payment Authorization copies as prescribed by the drawee but ensuring enough copies for accounting and storage purposes) and the cheque fully completed with all elements and signatures (and seals, if applicable) on the front of the cheque.

The drawee controls, compares, and checks the conditions for guaranteeing payment of the cheque as prescribed in Clause 1 of this Article; if the conditions are met, they process:

- Record the date, month, year, and sign and stamp of the drawee, along with the phrase "Guaranteed Payment," on the front of the cheque.

- Hand over the cheque that has completed the guaranteed payment procedure to the customer.

Process the Payment Authorization copies as follows:

- One copy of the Payment Authorization serves as the debit entry for the drawer's deposit account, simultaneously serving as the credit entry for the deposit account securing cheque payments of the drawer.

- One copy of the Payment Authorization serves as the Notice of Debit given to the drawer of the cheque.

b) In the case of freezing the amount in the deposit account:

If technical conditions permit, the drawee may freeze the balance of the drawer's deposit account according to a written agreement, with the frozen amount being equal to the amount securing cheque payments, taking into account any overdraft limit (if applicable).

4. Once the cheque has been guaranteed, the drawee is only responsible for ensuring the payment capability of the amount on the cheque until the presentation period of the cheque expires.

5. After the presentation period has expired and the cheque has still not been presented for payment, the drawer has the right to request the drawee to terminate the temporary retention or freezing of the amount used to secure the cheque's payment capability.

Article 14. Guarantee of a Cheque

A cheque guarantee is the act of a third party (hereinafter referred to as the guarantor) committing to the beneficiary that they will pay the full or partial amount stated on the cheque when the guaranteed party fails to make payment or does not fully pay the cheque.

To guarantee a cheque, the guarantor must write the phrase "guarantee," the amount guaranteed, the guarantor's name, address, signature, and the name of the guaranteed party on the front of the cheque or on an attached document. If the guarantee does not include the name of the guaranteed party, it shall be considered a guarantee for the issuer of the cheque.

After fulfilling the guarantee obligation, the guarantor may assume the rights of the guaranteed party against those related to the cheque, manage the collateral of the guaranteed party, and have the right to request the guaranteed party, the issuer, and those responsible for the guaranteed party to fulfill the obligation to repay the amount already paid under the guarantee.

Chapter VI
PRESENTATION AND PAYMENT OF CHECKS

Article 15. Presentment of a Cheque

A cheque is deemed "presented" if the cheque, either in paper form (in cases of paper-based payment processing) or in electronic data form (in cases of electronic payment processing), reaches the presentation location specified in Article 16 of this Regulation.

1. A cheque presented within thirty days from the date of issuance (excluding periods of force majeure or objective obstacles) and where the issuer has sufficient funds to cover the amount stated on the cheque, the drawee shall be responsible for paying the beneficiary or the person authorized by the beneficiary immediately upon presentation or on the next working day following the presentation.

2. A cheque presented beyond the presentation period but not exceeding six months from the date of issuance can still be honored by the drawee if the drawee has not received a stop-payment notice regarding that cheque and the issuer has sufficient funds to cover the amount.

3. The beneficiary may present the cheque for payment through a public postal service guarantee letter. The presentation date for payment purposes is determined based on the postmark date of the sending location.

Article 16. Presentation Location

The beneficiary or the person authorized by the beneficiary, or the collecting agent, shall present the cheque at the following locations:

1. The payment location indicated on the cheque;

2. If the cheque does not indicate a payment location, it shall be presented at the business location of the drawee;

3. In the case where the presenter of the cheque is a service provider organization, in addition to the aforementioned presentation locations, such organization may present the cheque at the Central Clearing House if the organization is a direct member of the Central Clearing House.

Article 17. Payment of a Cheque at the Drawee

1. The acceptance and examination of cheques at the drawee shall be carried out as follows:

a) Upon receiving the cheque deposit slip along with the cheques submitted by the beneficiary or the collecting agent, the drawee must check the elements on the cheque to ensure:

- The person requesting payment is the lawful beneficiary of the cheque according to Clause 8, Article 4 of the Law on Transferable Instruments (in cases where the beneficiary directly presents the cheque);

- The cheque was issued on a blank cheque form provided by the drawee and filled out with all required elements as stipulated in Clause 1, Article 58 of the Law on Transferable Instruments;

- The cheque is within the presentation period for payment. If the cheque is presented after the presentation period but not more than six months from the date of issuance, the drawee may still honor the cheque if no stop-payment notice has been received and the issuer has sufficient funds in their account;

- The signature and stamp (if any) of the cheque issuer or the authorized cheque signer match the registered sample at the drawee;

- The cheque was not issued beyond the authority specified in the power of attorney for cheque issuance;

- The continuity of the chain of endorsement signatures (if the cheque has been endorsed) on the cheque;

- The cheque number and amount match the amount listed on the cheque deposit slip;

- The total amount on the cheque deposit slip matches the written amount;

- Other relevant factors as prescribed.

If errors are found in the cheque deposit slip or if the cheque lacks any of the above conditions, the drawee must return the cheque to the depositor and request them to submit a new correct cheque deposit slip; if there are no errors, the drawee shall sign to confirm receipt of the cheque as requested by the collecting agent or the beneficiary.

b) If the cheque does not contain the phrase "pay into account," the drawee may pay in cash at the presentation locations specified in Article 16 of this Regulation upon the beneficiary's request.

The person receiving cash must clearly write their full name, ID number (or passport, military identification card, defense employee identification card, or other identity document with a photograph and a counterfoil stamp) in the designated section for cash collection on the back of the cheque.

c) In cases where the regulations on cheque control are violated, causing abuse or loss of assets, the violator shall bear responsibility for compensation.

2. For cheques examined according to Clause 1 of this Article, the drawee shall verify the payment capability of the cheque, process accurately and safely, use accounting accounts to record transactions, and keep confidential the balance of the customer's payment account in accordance with the law, and follow the procedures and formalities prescribed from Clause 3 to Clause 5 of this Article.

3. If the balance in the issuer's payment deposit account, or the balance plus the overdraft limit in the issuer's payment deposit account (in cases where the issuer is permitted overdraft), is sufficient to cover the full amount stated on the cheque, the drawee shall record the payment date, sign on the cheques and the cheque deposit slips, then proceed as follows:

a) The cheques serve as debit entries to the issuer's payment deposit account or the account set aside for securing cheque payments.

b) The Interlinked Deposit Slip shall be used as evidence to credit the appropriate Account such as: The account of the beneficiary's demand deposit (in case the beneficiary has an account with the drawer); Cash (in case the beneficiary withdraws cash); Net Settlement, Central Bank Deposit (in case of net settlement or settlement through the State Bank); The account of the collecting agent (in case of settlement under agency agreement)... At the same time, prepare the appropriate payment document to transfer for net settlement (if the collecting agent participates in net settlement) or prepare the payment document to transfer money to the collecting agent to credit the beneficiary's account.

c) Procedures for payment and circulation of documents in cases where both the drawer and the beneficiary have accounts at the same branch of a bank or two branches belonging to the same system of service providers and that organization has an online payment system regulated and guided by the General Director (Director) of that unit or organization in accordance with the provisions of this Regulation.

4. Handling of cheques insufficient for payment

a) In the event that the amount available in the drawer's account at the drawee is insufficient to cover the full amount stated on the cheque, the drawee shall notify the drawer about the cheque being insufficient for payment. This notification shall specify the cheque number, date of issue, amount stated on the cheque, the amount insufficient for payment, and the beneficiary of the cheque immediately upon presentation or on the next working day following the presentation of the cheque. Such notification may be made by telephone, telegraph, or other suitable means of communication. The drawee has the right to charge a service fee from the drawer for this service.

Simultaneously, notify the presenter of the cheque (including the beneficiary or the collecting agent) immediately upon presentation or on the next working day following the presentation of the cheque using the agreed method of communication between the two parties.

b) The beneficiary has the right to request or through the collecting agent to request the drawee to proceed with one of the following methods:

- Prepare a refusal to pay certificate for the entire amount stated on the cheque and return the cheque to the drawer;

- Pay part of the amount stated on the cheque up to the amount available in the drawer's account at the drawee and prepare a refusal to pay certificate for the remaining unpaid amount on the cheque (In this case, the beneficiary prepares a Collection Order according to Appendix No. 03);

c) Upon receiving a Collection Order requesting partial payment of the amount recorded on the cheque from the beneficiary, the drawee shall process as follows:

- Verify the legality and validity of the Collection Order.

- Based on the Collection Order and the current payment capacity of the drawer at the time of receiving the request, the drawee shall record:

Debit the drawer's demand deposit account;

Credit the appropriate account (Beneficiary's demand deposit account; Cash; Settlement account; Deposit account at the State Bank, Collecting agent's account...)

And prepare a settlement document (if the collecting agent participates in net settlement) or prepare a payment document to transfer money to the collecting agent to credit the beneficiary's account while:

+ Prepare a refusal to pay certificate (Appendix No. 5) for the unpaid amount of the cheque, and write "paid... (amount)...", refused... (amount)..., date of payment..." on the front of the cheque, send the refusal to pay certificate along with the cheque and other settlement documents to the beneficiary or the collecting agent;

+ Prepare a notice regarding the refusal to pay the cheque, specifying the cheque number, date of issue of the cheque, name and address of the cheque beneficiary, amount stated on the cheque, amount refused for payment, and send it to the drawer to request them to fulfill their obligation to pay the refused amount of the cheque, accompanied by a notice of the possible consequences if they fail to fulfill their obligation to pay the refused amount.

The drawee must maintain a record of cheques partially paid.

Information related to the drawer of a cheque insufficient for payment shall be processed in accordance with Article 22 of this Regulation.

- When paying part of the amount stated on the cheque, the drawee requests the beneficiary (in case of payment to the beneficiary's demand deposit account opened at the drawee or cash payment) or the collecting agent (in case of payment through the collecting agent) to prepare a receipt (according to Appendix No. 04) to retain the document.

5. In cases where multiple cheques are presented simultaneously for payment from one drawer and the drawer's payment capacity is insufficient to cover all cheques, the order of cheque payment shall be determined based on the date of issue and the serial number of the issued cheques, the cheque with the earlier issue date will be paid first, and if the cheques have the same issue date, the cheque with the lower serial number will be paid first.

Article 18. Collection of Cheques through Collecting Agents

1. The collecting agent has the right to set service fees for collecting cheques from the beneficiary. In cases where the cheque is dishonored due to reasons not attributable to the collecting agent, the collecting agent is not obligated to refund the collection fee to the beneficiary.

2. If the cheque is dishonored due to the fault of the collecting agent, the collecting agent must compensate the beneficiary for losses according to the agreement between both parties. In case of no agreement, it shall be handled in accordance with the provisions of the law.

3. Procedures for delivering, receiving, and inspecting cheques at the collecting agent are as follows:

a) Based on the cheques, the beneficiary prepares a Deposit Slip (Appendix Model No. 2 - The number of Deposit Slip copies is determined by the issuer but must ensure sufficient copies for accounting, payment, and storage purposes). The Deposit Slip is prepared separately for each issuer along with the cheques submitted to the collecting agent. All elements specified on the Deposit Slip must be fully and clearly recorded without alteration or erasure.

b) Upon receiving the Deposit Slips and the submitted cheques, the collecting agent must verify the elements shown on the cheques to ensure:

- The person requesting payment of the cheque is the lawful beneficiary of that cheque as stipulated in Clause 8, Article 4 of the Law on Transfer Instruments;

- The cheque is filled out with all required elements as prescribed in Clause 1, Article 58 of the Law on Transfer Instruments;

- The cheque is within the presentation period for payment. If the cheque is presented after the presentation period for payment but not more than six months from the date of issuance, the collecting agent still has the right to collect the cheque for the beneficiary with the agreement that they will not be responsible if the cheque is dishonored;

- The continuity of the endorsement signatures (if any) on the cheque;

- The cheque number and amount match the amount listed on the cheque deposit slip;

- The total amount on the Deposit Slip must match the amount in figures.

c) When discovering errors in the Deposit Slip or the cheques do not meet the above conditions, the collecting agent must return the cheques to the depositor and request the preparation of a new Deposit Slip that corresponds to the eligible cheques.

d) If there are no errors, the collecting agent signs to confirm receipt of the collection request at the beneficiary's request, records it in the cheque dispatch tracking book (used as a basis for tracing lost or delayed cheque dispatches), and sends the cheques and Deposit Slips to the presentation location within the agreed time and method with the beneficiary and in compliance with current regulations of the issuer.

4. Direct handover of cheques between the collecting agent and the issuer must be recorded in the tracking book of document handover and signed for. If direct handover between the collecting agent and the issuer is not possible, other delivery methods may be applied but must ensure that the cheques are promptly, fully, accurately, and securely delivered to the issuer.

5. Accounting procedures at the cheque collecting agent

a) In the case of full payment of the amount stated on the cheque.

Upon receipt of the payment confirmation documents sent by the issuer, the collecting agent uses these documents for accounting:

Debit Suitable Account (Settlement Offset, Central Bank Deposit Account, Issuer Deposit Account...),

Credit Beneficiary Payment Account.

And send a Credit Notice to the beneficiary.

b) In the case of partial payment of the cheque as notified by the issuer.

Based on the amount already paid, the collecting agent uses the partial payment vouchers for the cheque sent by the drawer to record:

Debit Suitable Account (Settlement Offset, Central Bank Settlement Account, Issuer Settlement Account...),

Credit Suitable Account (Other Pending Payment Accounts...).

The beneficiary or the collecting agent (acting as the beneficiary's authorized representative) must prepare a Receipt (Appendix Model No. 4) to submit to the issuer.

Upon receipt of the beneficiary's Receipt, based on the Receipt, the collecting agent proceeds to issue a transfer voucher, accounting:

Debit Other Pending Payment Accounts - opened with detailed accounts for each cheque beneficiary.

Credit Suitable Account (beneficiary's payment account; cash).

And send one copy of the Receipt to the issuer.

c) After five working days from the date the collecting agent sends the Credit Notice regarding partial payment of the cheque amount, if the collecting agent does not receive the beneficiary's Receipt, the collecting agent must return the partially paid cheque amount to the issuer, accounting:

Debit Other Pending Payment Accounts - opened with detailed accounts for each cheque beneficiary.

Credit Suitable Account (Settlement Offset, Central Bank Settlement Account, Issuer Deposit Account...).

Article 19. Payment of Cheques

1. The General Director (Director) of the service provider organization shall be responsible for stipulating and guiding the payment of cheques between branches and subordinate units of that organization in accordance with current legal regulations, and simultaneously informing and disseminating to their customers for implementation.

2. Service provider organizations have the right to negotiate with other service provider organizations within the same locality or in different localities regarding the organization of cheque payments for customers of both parties, specifying procedures, authorities, and responsibilities of the relevant parties based on self-responsibility for ensuring safety during the cheque payment process, and simultaneously informing and disseminating to their customers for implementation; 3. Cheque payments through the Payment Settlement Center are carried out as follows:

a) For Payment Settlement Centers of the State Bank of Vietnam, cheque payments through the Payment Settlement Center shall apply the settlement procedures prescribed by the State Bank of Vietnam.

b) For Payment Settlement Centers which are service provider organizations licensed to operate by the State Bank of Vietnam, cheque payments among member service provider organizations through such centers shall be conducted according to agreements between the center and its members.

CONTROL AND HANDLING OF LOST OR DAMAGED CHEQUES

Chapter VII

Article 20. Lost Cheques.

a) If the drawer loses the blank cheque, the person losing the cheque shall immediately notify the payee in writing or by other agreed methods.

1. In case of lost cheques, the following measures shall be taken:

b) If the person losing the cheque is the beneficiary, they shall immediately notify the payee in writing or by other agreed methods, and at the same time directly or through previous endorsees notify the drawer to request the drawer to issue a stop-payment notice for the lost cheque to the payee.

c) In cases where the person losing the cheque is not the beneficiary, they must immediately notify the beneficiary to carry out the procedures specified above.

2. After issuing a lost cheque notification, the person who lost the cheque has the right to request the drawer to reissue a cheque with the same content as the lost cheque, with a written commitment to repay the payee or the drawer if the lost cheque is presented by a legitimate beneficiary for payment.

The drawer has the obligation to reissue a new cheque with the same content as the lost cheque upon request of the beneficiary who lost the cheque.

3. Upon receiving a notification about the loss of a cheque, the payee must immediately check the information about the lost cheque and record it in the cheque tracking log.

The payee shall not make payment on a reported lost cheque. When a reported lost cheque is presented for payment, the drawer shall be responsible for retaining the cheque and notifying the person who issued the lost cheque notice to resolve the matter.

4. The payee shall not be liable for damages caused by the misuse of a lost cheque if, before receiving the lost cheque notice, the cheque was presented and paid in accordance with legal regulations.

5. The payee has the responsibility to retain information about reported lost cheques and notify the Credit Information Center of the State Bank of Vietnam in writing.

If the payee makes payment on a reported lost cheque, the payee shall be responsible for compensating the beneficiary for the damage.

5. The person to whom the loss report is made shall be responsible for retaining information about the lost cheque and notifying the credit information center of the State Bank of Vietnam in writing.

Article 21. Damaged Cheque.

1. When a cheque is damaged, the beneficiary has the right to request the drawer to issue a new cheque with the same content to replace it.

2. The cheque drawer shall be obliged to reissue the cheque after receiving the damaged cheque if the cheque still contains sufficient information or there is evidence confirming that the holder of the damaged cheque is the legitimate beneficiary of the damaged cheque.

Chapter VIII
VIOLATIONS AND PENALTIES FOR VIOLATIONS

Article 22. Violation of Issuing a Non-Sufficient Funds Cheque

1. First Offense

a) In case the cheque is presented within the payment period, but the amount available for the drawer to use to issue the cheque at the drawee is insufficient to cover the full amount on the cheque, after issuing a refusal to pay certificate according to regulations, the drawee shall have the responsibility to notify the drawer to fulfill the obligation to pay the amount stated on the cheque;

b) After directly paying the beneficiary, the drawer shall inform the drawee about the fulfillment of the payment obligation, and attach the paid cheque.

c) Within five working days from the date of sending the refusal to pay notice to the drawer, if the drawee does not receive the notification of the fulfillment of the payment obligation along with the paid cheque as stipulated in Point b Clause 1 of this Article from the drawer, then the drawee shall immediately and permanently suspend the drawer's cheque issuance rights, and simultaneously report to the Credit Information Center of the State Bank of Vietnam regarding the violator and the handling measures as specified in Appendix 6 of this Regulation.

Depending on the severity of the violation, the drawer will be dealt with according to the current laws on administrative penalties in the field of currency and banking activities.

The drawee shall be responsible for retaining information about the drawer who issued a non-sufficient funds cheque in their records.

2. Second Offense

If the drawer repeats the first offense within twelve months, and within five working days from the date of receiving the drawee's notification, the drawer pays the beneficiary immediately and sends a notification to the drawee about the fulfillment of the payment obligation along with the paid cheque, then the drawee shall temporarily suspend cheque payments for six months, and simultaneously report to the Credit Information Center of the State Bank of Vietnam regarding the violator according to the contents specified in Appendix 6 of this Regulation.

If within five working days from the date of sending the refusal to pay notice to the drawer, the drawee does not receive the notification of payment of the non-sufficient funds cheque along with the paid cheque from the drawer, then the drawee shall immediately and permanently suspend the drawer's cheque issuance rights and handle according to the measures stipulated in Point c Clause 1 of this Article.

3. Third Offense

Within twelve months, if the drawer commits three violations, then the drawee shall immediately and permanently suspend the drawer's cheque issuance rights and handle according to the measures stipulated in Point c Clause 1 of this Article.

4. Service providers offering payment services shall be responsible for checking information about the person requesting to be provided with a blank cheque for the first time before deciding to provide a blank cheque to that person. The Credit Information Center of the State Bank of Vietnam shall be responsible for providing the stored information mentioned above to service providers offering payment services on the day of receipt of the request or on the next working day thereafter.

Article 23. Penalty interest rate

The penalty interest rate for delayed payment of cheques shall be 200% of the basic interest rate published by the State Bank of Vietnam at the time of application. The amount of the penalty for delayed payment shall be paid to the beneficiary of the cheque.

Chapter IX
IMPLEMENTING PROVISIONS

Article 24. Guidance on Implementation

1. The General Directors (Directors) of organizations providing payment services shall base on the provisions of this regulation to issue operational procedures regarding the provision and use of cheques within their units, suitable to their specific operational characteristics, and simultaneously disseminate them to customers for implementation and bear responsibility for monitoring and organizing inspections of compliance within their units.

2. During the implementation process, if there are any difficulties, then organizations, individuals using cheques, and those related to the use of cheques shall reflect these issues to the payment service provider serving them for resolution; payment service providers, if they encounter difficulties that cannot be resolved, shall reflect these issues to the State Bank of Vietnam branch in the same province or centrally governed city for resolution; in cases where these issues cannot be resolved, they shall reflect them to the State Bank of Vietnam for research and resolution./.