Banking Law: Checks and Bills of Exchange Regulations

Regulations for Checks and Payment Methods

1. The Drawer: The policyholder or drawer is the individual who issues the check for charge.
2. Signature and Seal: The firm extends the check, which must be signed and stamped by a seal.
3. Bearer Checks: A check payable to the bearer is collected by the person who holds this collection.
4. Endorsement Clauses: A check can be endorsed unless it has been completed with a "not to order" clause.
5. Bank Checks: A bank check is one where the bank always guarantees that it will be paid.
6. Guarantor Responsibilities: The endorsement is characterized by the guarantor responding in the same way as the person guaranteed.
7. Transmission of Rights: Endorsement is characterized by the transmission of all rights of the check.
8. Insufficient Funds: If there are only partial funds in the drawer's account, the bank hands over the remaining account balance.
9. Legal Deadlines in Spain: The legal term for a check issued and payable in Spain is 15 days.
10. Nullification: Can a check be nullified within the legal deadline? No, only in cases of misplacement or loss.
11. Recovery Actions: To bring action for recovery, one needs to show a statement equivalent to a protest upon presentation of the check.
12. Debit Card Purchases: With a debit card, purchases can be made if there are sufficient funds in the account.
13. Nominative Checks: A nominative check is paid to the specific person indicated on it.
14. Account Payable Checks: A check extended for an account payable is charged via a subscription to the account.
15. Certified Checks: The clause for a certified check ensures the authenticity of the account and that it has sufficient funds.
16. European Legal Terms: The legal term for a check issued in Europe and payable in Spain is 20 days.

Legal Aspects of Bills of Exchange

1. Issuance: In a sales operation, the seller is the one who issues the bill of exchange.
2. Acceptance: The acceptance of a bill of exchange is confirmed by the signature on the document.
3. Transmission: The transmission of a bill of exchange is performed by endorsement.
4. The Taker: When a letter is delivered to a firm, the recipient is called the taker.
5. Maturity at Sight: When a bill does not specify a maturity date, it is supposed to be "at sight."
6. Maturity from Date: Maturity at a term counted from the date starts counting from the day following acceptance.
7. Maturity from Sight: Maturity at a term counted from sight begins counting from the day of acceptance.
8. Computing Days: In computing the days for maturity, non-working days are included.
9. Protest Declaration: A declaration equivalent to a protest is made by the maker.
10. Stamp Duty: If the maturity of a bill of exchange exceeds 6 months from the date of issuance, the stamp duty is doubled.
11. Discrepancies in Amount: If the amount is written in both numbers and words and they are not equal, the amount written in words prevails.
12. Optional Clauses: When the optional clause box is left blank, it signifies "without costs."
13. Total Payment: The payment must be for the total amount and never just a part.
14. Endorsement Restrictions: The endorsement of a bill may be forbidden with a "not to order" clause.
15. Notarial Protest: A notarial protest is an act that proves the bill was presented for payment to strengthen the claim in court.