Legal Encyclopedia. The letter H

CHECK

- Security containing a written order is not caused by anything the drawer of the check to the bank to pay the holder a certain amount. A check must be presented for payment within the time limits specified therein.

The main features of Ch how security are:

1) a document certifying the property rights, the exercise or transfer shall be possible only upon its presentation. Property rights in this case are the requirement to pay a sum of money;

2) the document must be made in compliance with the requirements for the form and contain the mandatory details, the absence of which deprives it of legal effect;

3) check, as well as other securities, refers to the objects of civil rights and is movable property.

The absolute nature of the payment by Ch means the independence of the obligations on the conditions and the validity of the transaction, in which it has been issued pursuant to. The invalidity of the transaction is not a ground for refusing payment of the Ch

Said amount to Ch paying bank issues a check holder from the funds in the account of the drawer or by funds deposited in a separate account, but not in excess of the amount that a bank guarantee as agreed with the check issuer.

If Ch bears the signatures of persons not able to commit on it, or forged signatures, or signatures of fictitious persons, or signatures which for any other reason can not bind the persons who signed the check, or those on whose behalf it was signed, the obligations of the other persons who signed Charles nevertheless remain in force.

Ch payable on demand. Charles presented for payment before the date specified as the date of issue, payable on the day of presentation.

The payer is obliged to check the authenticity of the Ch through reconciliation and the signature of the drawer, and the powers of the check holder. When paying Ch payer is obliged to check the correctness of endorsements (their continuity, lack of endorsement, committed by the payer). The payer is not obliged to check the authenticity of the signature of the endorsers.

Ch can be transferred by the owner to another person in a certain order. Transferring Ch rights made in the general procedure established for the transfer of the rights on securities. However, the law provides for some features of the transfer of rights under Part So, can not be transferred to the right on behalf of Charles, in contrast to the general rules of the Civil Code, which provides that the rights certified by a registered security, are transferred in the manner prescribed for the assignment of claims ( cession).

An endorsement transfers all the rights under an order Ch endorsement must be written on the Charles or bond with him a sheet (allonge). It must be signed by the endorser. Endorsement may indicate a person who is transferred to Part (a special endorsement), or the person is not specified, or may consist of only the signature of the endorser (endorsement in blank). In the latter case, it is to be valid, it must be written on the reverse side of the Charles or bond with him a sheet (allonge).

C. Payment can be guaranteed by any third party (other than the payer) in the full amount or in part, by an appropriate inscription on the Charles or allonge (surety). A person who guarantees the payment of Ch - guarantor - shall be liable to the same extent as the person for whom the guarantee is given.

If the payer refused to pay Ch, presentment for payment, this fact shall be certified by: a notary protest or equivalent declaration drawing; payer on the check mark to refuse to pay it with an indication of the date of presentation of the check for payment; stamp collecting bank with an indication of the date, indicating that a check promptly exposed and not paid.

In the case of non-payment of Ch holder of a check shall have the right to present claims to each or all persons obligated by Charles (drawer, an endorser and guarantor). These persons must be promptly notified of the refusal of the payer.