A check is a security that is issued in strict accordance with the requirements of the law and contains an uncompensated order (order) of the latch to the bank to pay a certain amount to the lender.
Check mark – the name of the check document, which should be included in the text of the document and expressed in the language in which this document is drawn up.
Check order – i.e. the offer of the latch to the payer not subject to any reservations to pay a certain amount of money to the bearer of the check or to the person indicated in the check as the recipient, or to his order. Example: “Pay against this check one hundred thousand rubles“ X ”or his order”. The check order must be unconditional, i.e. the latch must not bind the payment on the check by submitting any documents, or by fulfilling any obligations under the threat of invalidating the check.
Payer designation. A payer on a check can only be a bank or a credit institution equivalent to it.
The amount of the check is a mandatory props. The amount is indicated by the letter (except for the exchange units of the corresponding currency), and then is repeated by numbers. In case of discrepancies between them, the check is considered to be written out for the amount indicated by the letter. If the amount of the check is indicated several times either in words or in numbers and there are discrepancies between them, the amount of the check will be considered less. In this case, payment on the check must be made in the currency in which it is issued. If the check is issued in a currency that does not have circulation at the place of payment, then its amount can be paid in local currency.
The date and place of the check – the number and year can be indicated both in words and in numbers, and the month – only in words. If there is no indication in the text of the check of the place of its compilation, this is usually the place indicated next to the name of the checker.
Signature of the checker. No person is required by check if he has not put his signature on it (therefore, the payer is not a person obligated by check, since there is no signature on the check). The signature must be performed by the clerk with his own hand. If the chekoder is a legal entity, then its seal or signature stamp is additionally affixed.
In different countries, depending on existing legal norms and customs, certain provisions of the check legislation may vary, but at the same time, the general features inherent in the classical check-in can be noted:
1. Checklist participants: checker, check holder and check payer – bank. Further there may be – endorsers – persons who received a check on the transfer inscription and avalists – persons who put their signature on the check as a guarantor for his payment.
All participants in the check-in are connected by certain rights and obligations, the subject of which is the payment of the amount indicated in the check. So, the right to issue checks (active accuracy) implies the existence of a special check agreement between the clerk and the paying bank. That is, if the latch gives a check to the bank with which he does not have a check contract, he deceives his creditor, the future holder of the check, placing him in front of the “empty cashier”, i.e. it’s a danger not to get a payment on the check.
2. The form of the check contract is not legally established, therefore it can be arbitrarily selected by the parties. The main duty of the checker under the check agreement with the bank is to submit “cover by check” in a timely manner, i.e. the amount indicated in the check required by the bank to pay it to the check holder upon presentation of the check for payment.
Since the check is the order of the latch to make a payment at the expense of its funds, the latch, having issued the check, does not automatically transfer the right to these funds to either the payer bank or the clerk. Until the moment of payment, they continue to be at the disposal of the lining holder, i.e. check calculation does not repay the debt. The debt is considered repaid not from the moment of issue of the check, but from the moment of its payment by the payer bank. In other words, the lender is not obliged to accept the check instead of the payment due to him, and, therefore, accepting the check in payment for the delivered goods, the services rendered are an act of goodwill, based on the creditor’s trust in his debtor.
3. The check must not only be issued in compliance with all the requirements of the check legislation, but also handed to the person with whom it is supposed to make the calculation by check – the future holder of the check. It follows that all rights on the check are exercised upon presentation of its original. That is, by its legal nature, a check is a security that has public confidence, does not require additional evidence from its owner of the rights arising from this paper.
In case of loss of the check, the holder must immediately inform the latchor about this, and that payer bank.