What Is a Bad Check?

Cheques are issued by the drawer, and the bank or other financial institution entrusted to handle the check deposit business unconditionally pays the confirmed amount to the beneficiary or the holder of the bill when they see the ticket. The same is true for the draft system for bills, so we will only introduce special rules for checks that differ from bills of exchange.

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Classification of Check Items

Check items include:

1. To open a checking deposit account, the applicant must use his real name and submit legal documents to prove his identity;

2. To open a checking deposit account, the applicant should reserve his signature and seal;

3. Opening a cheque deposit account and receiving a cheque should have reliable credit and deposit a certain amount of funds.

Is it available for payment

Cheques are issued by the drawer and entrusted

Cheque book

Cheque drawer

Cheque holder

Do not

The relevant legal provisions on cheques in the China Bill Law are as follows:

Article 82 A cheque is issued by the drawer, and the bank or other financial institution entrusted to handle the check deposit business shall pay the confirmed amount to the payee or the holder unconditionally when they see the ticket.

Article 83 To open a checking deposit account, the applicant must use his or her real name and submit legal certificates to prove his identity.

To open a check deposit account and receive a check, there should be reliable credit and certain funds should be deposited.

To open a checking deposit account, the applicant shall reserve the signature and seal of his real name.

Article 84 Cheques can be drawn in cash or transferred.

Check picture

When used for transfers, it should be stated on the front of the check.

Where cheques are specifically used to withdraw cash, cash cheques can be made separately. Cash cheques can only be used to withdraw cash.

If the cheque is specifically used for transfer, a transfer check can be made separately. The transfer check can only be used for transfer, and no cash can be drawn.

Article 85 A check must record the following:

(1) the words "check";

(2) Entrustment of unconditional payment;

(3) the determined amount;

(4) the name of the payer;

(5) the date of ticket issuance;

(6) Signature of the drawer;

(7) The cheques in different places must record the 12-digit bank organization code in the lower right corner of the face of the cheque.

If one of the items specified in the preceding paragraph is not listed on the check, the check is invalid.

Article 86 The amount on a cheque may be supplemented by the issuer's authorization. Cheques that have not been pasted may not be used.

Article 87 If the name of the payee is not recorded on the check, the check may be supplemented with the authorization of the drawer.

If the place of payment is not listed on the check, the place of business of the payer is the place of payment.

If the place where the ticket is issued is not listed on the check, the place of business, residence or habitual residence of the issuer is the place where the ticket is issued.

The drawer can record himself as the payee on the check.

Article 88 The amount of a check issued by the drawer of a check shall not exceed the amount of the deposit actually made with the payer at the time of payment.

If the amount of the check issued by the drawer exceeds the amount of the deposit actually made by the payer at the time of payment, the check is a short check. It is forbidden to issue short checks.

Article 89 The issuer of a check may not issue a check that does not match the signature or seal of the original name.

Article 90 The drawer must bear the responsibility of guaranteeing payment to the holder in accordance with the amount of the check issued.

When the drawer's deposit with the payer is sufficient to pay the check amount, the payer should pay in full on that day.

Article 91 Cheques are limited to pay upon sight, and no date of payment may be recorded separately. If the payment date is separately stated, the record is invalid.

Article 92 The holder of a cheque shall present payment within 10 days from the date of issue; for cheques used in other places, the time limit for presenting payment shall be separately stipulated by the People's Bank of China.

If the payment deadline is exceeded, the payer may refuse to pay; if the payer fails to pay, the drawer shall still bear the liability of the bill to the holder.

Article 93 If the payer pays the check amount in accordance with law, he shall no longer bear the responsibility of entrusted payment to the drawer and no longer bear the responsibility of payment to the holder. However, except for those who pay by malicious or gross negligence.

Article 94. In addition to the provisions of this chapter, the endorsement of cheques, the act of payment, and the exercise of the right of recourse apply to the provisions of chapter 2 of this law on drafts.

In addition to the provisions of this chapter, the provisions on drafts of Articles 24 and 26 of this Law apply to the act of issuing checks.