Monday, 6 February 2017

Concept of Check

It is known under the concept of check to a document of type accounting with a special value in which the person reached by an other individual authorized to extract a sum of money given, an account of a holder. All of this information: the holder of the account, the authorized, the sum of money, etc. is expressed on the check, and its presence is also essential to be able to make this bank transaction. This allows to define a check as a title value to the carrier, in which a person known as drawer, instructs a credit institution (Bank branch, account, etc.) the payment of a sum of money to a third person, called beneficiary.

For a check to be valid must meet certain requirements: the RID, i.e. the credit institution, must have a contract with the drawer. The chosen banks will receive money from its customers, who will be required to return to the view when the client wants to. Checks are used to document the payments. They have funds available to continue the regularity of the check, if this is not so, there may be a penalty. The drawer should have been authorized by the drawee for the issuance of cheques, which are in charge of the account of the drawer.

The basic features that has a check are: literality, which means that the sum of money to withdraw is only and exclusively what is written specifically on the check. To enter this amount, the cheque must contain the full name of the beneficiary and all the aforementioned requirements; Value per is, this means that you must have value if in the document. This means that, for example, if a person is found in possession of a cheque with an endorsement, this does not have to give explanations to the Bank to withdraw that particular sum of money; It is to check as a ticket, so has value if; View, checks it contains no date when it must be paid. The date which is located on the check only serves to leave constancy of the moment in which determined person has the intention of that document. You can find some cases of pos-dated cheques, which one last time the date that appears on the product, expire; Security seals, to prevent counterfeiting and increase security against fraud, checks are often recorded in ink transcripts or seals which must be verified by a few people who have access to them.

The payment must be in the same moment in which is presented to the drawee (lending institution). The check is a title of credit by which the payment must be done in its delivery. In these instances, the liberating presents a liability very high, as is the main responsible for this payment is accomplished of way positive. If direct exchange rate action can not be performed and there is an action of return against the endorsers, the drawer will be responsible for any damages incurred by the holder. The responsibility of the drawee, i.e. the credit institution depends on authorizing the person to issue checks, it is obliged to cover all the sum of amount which it may have at their disposal the drawer. If this institution refuses without just grounds to pay this document, it will be responsible for all damages or damages suffered by the holder.

There are a variety of types of checks, as nominee, order the carrier, etc. Each contains unique features in certain areas, such as the amount of money, the expiration date, the person to whom the form is offered (beneficiary), and place of payment, etc. In some cases the figure is written two times, in number and letters, to avoid the change of the same. The figures can be covered by zeal adhesive for greater security.

Checks that do not allow to withdraw the money in cash, can be found, for example, so it shall be delivered the check to a bank account (check cross); the check of payment deferred makes reference to an order in a bank given in which the liberating, according to the date of presentation stipulated in the document, should have sufficient funds in your has current the day that is organizing the check; You can find many more kinds of checks between the aforementioned.

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