Decree on Checks
关于支票的法令
ດຳລັດ ວ່າດ້ວຍແຊັກ
Summary
This Decree stipulates the principles, rules, and measures for the opening, use, issuance, transfer, and settlement of checks, clarifying the rights and responsibilities of relevant parties, aiming to replace cash settlement with checks, facilitate and secure financial transactions, and maintain national currency stability.
Articles
Article 1
Purpose. This Decree establishes the principles, rules, and measures concerning the issuance, use, signing, transfer, and settlement by check, and defines the rights and responsibilities of parties involved with checks, in order to facilitate and ensure the safety of settlements, with the aim of replacing the use of cash with checks, saving currency printing costs, and contributing to the maintenance of national monetary stability and economic and social development.
Article 2
Cheque. A cheque is a financial instrument of equivalent value to cash, used as a settlement tool for payment of goods, services, debts, and other obligations.
Article 3
Interpretation of terms. The terms used in this Decree shall have the following meanings: 1. Drawer, refers to the Bank of the Lao People's Democratic Republic (Central Bank of Laos), the National Treasury, commercial banks, and financial institutions, i.e., the party that issues checkbooks to those who open demand deposit accounts with them; 2. Issuer, refers to the account holder, or a person authorized and instructed by the account holder to direct the drawer to pay the holder; 3. Payee, refers to the person who directly receives the check from the issuer, who may present the check to the drawer for payment or transfer the check to another person; 4. Holder, refers to the person in possession of the check, who may be a natural person, legal entity, transferee of the check, or ultimate transferee; 5. Transferor, refers to the person entitled to possess the check and who delivers the check to another person with or without endorsement; 6. Check guarantor, refers to a person who, at the request of the payee and the issuer, assumes the guarantee of payment on behalf of the issuer or transferor. A check may be guaranteed by a natural person, legal entity, or multiple persons; the guarantee may cover the full amount or any part of the amount on the check; the guarantee must be clearly written on the check or an attached document, accompanied by the guarantor's signature; 7. Checkbook, refers to a booklet of check specimens issued by the drawer, binding multiple checks together; 8. Collecting bank, refers to a commercial bank or financial institution that is not the drawer but to whom a request for payment is made, i.e., the party to whom the holder presents the check for payment; 9. Check clearing center, refers to a place providing services for the sending, receiving, comparison, and calculation of net balances of checks for commercial banks, the National Treasury, and financial institutions; 10. Bearer check, refers to a check that does not specify the name of the payee or is marked "pay cash"; 11. Order check, refers to a check that clearly specifies the name of the person entitled to receive payment; 12. Check payable into a general account, refers to a check that does not specify an account number in the upper left corner or between two parallel diagonal lines in the middle of the check face; 13. Check payable into a designated account, refers to a check that specifies a particular account number in the upper left corner or between two parallel diagonal lines in the middle of the check face; 14. Traveler's check, refers to a check issued by a bank or financial institution to another person, which is highly liquid and can be exchanged for cash at any time.
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