set 6: Checks Flashcards
written, dated, and signed instruments that directs a bank to pay the bearer
Checks
the person issuing the check
Drawer
is the bearer or the person or the entity named on the check to whom payment is to be made
Payee
the bank in which the drawer maintai9ns a checking account
Drawee Bank
6 parts of a check
1 Date
2 Name of Payee
3 Amount in Figures
4 Amount in Words
5 Signature
6 Memorandum Line
when it was drawn or issued to a payee
Date
should be written in the format MM/DD/YEAR
Purely Numeric Format
fully written date
Alpha-Numeric Format
correct spelling of the payee’s name must be written
Name of Payee
centavos must be seperated by a decimal point
Amount in Figures
should match the amount in figures and word “only” is added
Amount in Words
drawer affixes his signature on the signature line
Signature
optional part of the chek
Memorandum Line for Memo line
check clearing operation of different banks in the Philippines
PCHC
an electronic payments network that enables the customers of its members to transact at atm
Bancnet
bearing a future date
commonly used for periodic payments
Post-Dated Check
becomes stale 6 months after the date written on it
Stale Check
cannot be cashed
deposit only
Crossed check
pay-to-cash
anyone who bears the check can have it cashed
Bearer Check
not honored by banks for encashment
Invalid Checks
incomplete or lacking details
Blank/incomplete checks
erasures on the check are cured by striking the erroneous entries or applying correction
Modified or Altered Checks
teared, crumpled, wet, or burned checks may dishonored when parts are no longer readable
Mutilated Checks
require a payee to present a valid ID when cashing a check
Misspelled payee’s name
matched with the specimen signature submitted by the drawer to the bank
Mismatched signatures
amount in figures must agree in words
mismatched amount in figures and in words
