Legal encyclopedia. The letter P

CALCULATIONS FOR COLLECTION

- actions performed by the bank on behalf of and at the expense of the client on receipt from the payer of payment and acceptance of payment.

The following are the signs of collection:

1) the client's order to the bank to receive money from the payer or obtain consent to pay the money;

2) the instruction is executed at the expense of the client;

3) the instruction is executed by the bank independently or by means of another bank, i.e. Executing bank.

The bank that receives the collection order from the client, according to the civil legislation, is called the issuing bank. A bank that makes demands for payment and acceptance is called an executing bank.

The issuing bank, having received all necessary documents from the client, has the right to start execution of the collection order independently or forward it to the executing bank. In the absence of any document or

Non-compliance of the document with the established form of the collection order, the executing bank shall notify the issuing bank or the client thereof. If the specified deficiencies are not eliminated within the time limit established by law, banking rules or agreement of the parties, the executing bank shall have the right to return documents without execution.

There are two terms for payment of documents:

1) upon presentation of documents;

2) the due date.

If documents are payable upon presentation, the executing bank is obliged to make submission to the payment immediately upon receipt of the collection order. If the documents are due in a timely manner, then the actions of the executing bank depend on which collection transaction is entrusted to it. If it is a question of receiving a payment acceptance, then the executing bank is obliged to provide the payer with the documents immediately upon receipt of the collection order. The Executing Bank shall immediately transfer the collected amounts to the disposal of the issuing bank, which shall credit them to the client's account within the period established by law. Partial payments can be accepted,

If it conforms to banking rules, or if there is a special permit in the cash order.

The execution of the collection order depends on the will of the payer, therefore the law established a number of rules in case payment (payment acceptance) is not received. Refusal to pay (acceptance of payment) must be necessarily motivated by the payer. The executing bank is obliged to immediately inform the issuing bank of the reasons for non-payment or refusal to accept. The latter immediately notifies the payee about this and asks for instructions from him about further actions necessary for the execution of the collection order. He has the right to submit additional documents to the payer if the refusal of payment or acceptance of payment was caused by their defects or absence. He can withdraw the payment claim and apply to the court for a substantive resolution of the dispute. If the payee of the payment or the late acceptance has not given instructions on further actions, then the executing bank has the right to return the documents to the issuing bank within a reasonable time, in the period established by banking rules, or in its absence.