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2) ARE DETAILS ON THE DORSAL SIDE OF THE CHECK COVERED BY THE REGULATION?
A: No, details on the dorsal side of the check are not covered by the new regulation on non-acceptance of checks with
erasure/alteration/deficient information (PCHC Memo Circular No. 3060).
3) ARE PARENTHESES CONSIDERED AN ALTERATION WHEN INDICATED AS PART OF THE PAYEE NAME?
A: No, appearance of parenthesis as part of the Payee Name to uniquely indicate branch or location or service is not considered an
alteration. Example: Pay to the order of: ABC Refining Company (Alabang Branch).
4) WHEN IS A CHECK CONSIDERED TO HAVE A “DEFICIENCY” UNDER THIS NEW REGULATION?
A: A check is deemed to have a deficiency if one or more of the following is missing on the face of the check:
date
payee
amount payable in figures
amount payable in words -- except for checks issued by banks (Manager's or Cashier's Checks, Demand Drafts) using a check
writer; or
signature/s of the Drawer/s.
5) WHAT ARE OTHER CONDITIONS IN WHICH A CHECK MAY NOT BE ACCEPTED BASED ON APPEARANCE?
A: A check may not be accepted for negotiation due to the following reasons:
folded
written using felt tip pen, erasable ink pen, gel pen or pencil
mutilated checks (torn)
defaced by liquid (water, soda, coffee etc.)
6) WHEN CAN USING A CHECK WRITER RESULT TO A CHECK HAVING A DEFICIENCY?
A: Using ‘machine check writers’ to indicate figures in the amount in words is no longer allowed for corporates/customers, but not for
checks issued by banks *Manager’s or Cashier’s Checks (MCs or CCS), Demand Drafts (DDs)+ However, under PCHC Memo Circulars
3043 and 3045, corporates/customers who insist on still using machine check writers when they issue checks must, along with the
affixed numbers, indicate below them the amount in words. It is likewise recommended to use computer printers instead of
numeric check writers to print the legit amount in words in the appropriate space/line of the check. This is to comply with the
Negotiable Instruments Law (NIL).
7) WILL MY POST-DATED CHECKS (PDCs) BE AFFECTED BY THE NEW REGULATION?
A: The following are the conditions in which PDCs can still be accepted for clearing:
PDCs received and warehoused by the bank prior to January 4, 2016 and bearing the stamp ‘Warehoused Check’.
Nevertheless, these checks will still be subject to verification by the Drawee Bank which has the authority to decide a ‘pay’ or
‘no pay’ if it deems that the alteration/erasure is unauthorized. Likewise, effective January 4, 2016, any PDC you issue which
has an alteration or erasure, or deficiency (as specified in question 1 above) will be returned.
PDCs with ‘Check Writer’ affixed amounts that were warehoused and stamped ‘Warehoused Check” by banks prior to January
4, 2016. With the acceptance, the receiving Drawee Bank is likewise responsible in verifying/confirming with the Drawer, the
final disposition on checks negotiated/stamped with ‘Warehoused Check’.
PDCS that are currently in the custody/warehouse non-bank entities like Realty, Lending Institutions, etc.; provided that the
PDCs were received/warehoused prior to January 4, 2016. The Depository/Paying Bank is duly responsible for any amounts of
claim that may arise in case of misuse of the ‘Warehoused Check’ stamp.
8) SHOULD I REPLACE THE PDCs I ISSUED?
A: No, you need not replace the PDCs you issued if they have already been accepted and warehoused prior to December 31, 2016.
9) CAN A CHECK THAT WAS RETURNED DUE TO INCOMPLETE OR MISSING RELEVANT INFORMATION BE RE-CLEARED?
A: Yes, a check that was returned due to incomplete or missing relevant information may be re-cleared, provided that the missing
information is indicated by the Drawer/Issuer as required.