September 19, 1989
CBP CIRCULAR LETTER NO. 580-89
SUBJECT :
Amendment of Circular No. 317, Series of 1970 and Circular
No. 432, Series of 1974
SECTION 1.
Time and Place of Exchanges
The clearing of checks, bills and other demand items contemplated in this
circular shall be conducted in the premises of the Central Bank on the ground floor of
the Central Bank Building and at such other places in regional clearing centers which
the Central Bank may designate. The hour for making such exchanges shall be at 4:00
P. M. on each business day as well as on all local holidays in the clearing centers
and/or at such other times which may be fixed by the Central Bank.
LLphil
SECTION 2. Settling Clerks
The head office of each bank, institution or entity together with all its branches
within designated clearing areas (Annex "1") shall be considered as one (1) unit and
shall be represented by one or more (but not exceeding six) competent
clerks/representatives to deliver and receive the items to be exchanged. The facsimile
signatures and NBI clearances of representatives shall be submitted to the Accounting
Department. All representatives shall be issued their respective ID cards which shall
be presented for admission in the clearing office or regional clearing units.
SECTION 3.
Items for Clearing
All checks and documents payable on demand and drawn against a
bank/branch, institution or entity allowed to clear may be exchanged through the
Clearing Office in Manila and the Regional Clearing Units in regional clearing centers
designated by the Central Bank. As evidence of the channel through which they were
negotiated, all items to be exchanged shall be properly endorsed and guaranteed
before being sent to the Clearing Office/Unit and shall bear the name of the
bank/branch, institution or entity to which they belong. Likewise they shall be
impressed by the sending bank/branch, institution or entity with a special stamp to the
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effect that they have been cleared through the clearing facilities of the Central Bank of
the Philippines. The Clearing Office/Unit of the Central Bank of the Philippines shall
in no way be responsible for any flows or defects in the items of for any irregularity
whatsoever in any of their features.
Matured Philippine Treasury Bills which may be presented for clearing shall be
impressed with a special stamp with the word "PAID" and the name of the
bank/branch, institution or entity and the date of payment. The Treasury Bills shall be
sealed in separate envelopes properly stamped in bold letters "TREASURY BILLS"
with a machine tape listing the serial numbers and corresponding amounts, the total of
which shall be included as a debit against the Central Bank of the Philippines.
Treasury Bills for return may be sent through clearing following the procedure
stated under Section 4(c) hereunder.
LLphil
SECTION 4.
Clearing Procedures
(a) Procedure for Regular Clearing
Each bank/branch, institution or entity, through its representative/s, shall
deliver their respective demands in sealed envelopes made out separately against the
other banks/branches, institutions or entities allowed to clear. The total of each
demand shall be listed in a certified adding machine tape attached to the sealed
envelope. In acknowledgment of receipt of the demands against the bank/branch,
institution or entity he represents, the settling clerk concerned shall prepare and sign a
Clearing Office Statement (Clearing Form No. 4) in duplicate for local clearing. The
original and duplicate of the statement shall be submitted to the Chief, Clearing
Office, in Manila or the Regional Clearing Officer in the regional clearing centers.
The original shall be retained and shall be the basis for settlement of clearing balances
in the respective deposit accounts with the Central Bank. The duplicate duly
authenticated by the Chief, Clearing Office or the Regional Clearing Officer
concerned, shall be returned to the bank/branch, institution or entity concerned
through their clearing representatives. The duplicate shall be the basis of each
bank/branch, institution or entity for taking up corresponding entries in their
respective books of accounts on the date of clearing.
For out-of-town clearing, the Clearing Office Statement (Clearing Form No.
4-A) shall be prepared in quadruplicate for authentication by the Clearing Officer who
retains one copy. The third copy shall be returned to the sending bank/branch,
institution or entity through their respective clearing representatives. The original and
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duplicate shall be shipped to or retained in the Manila Clearing Office, as the case
may be.
LLphil
Out-of-town demands presented in a clearing center against a bank without any
branch in that particular clearing area shall be delivered to the Clearing Officer who
shall prepare a debit advice (Clearing Form No. 4-B) for the head office of the drawee
bank/branch concerned in the Manila clearing area.
In acknowledgement of receipt of out-of-town demands, the duplicate of the
Clearing Office Statement and/or the original of the debit advice/s, settling clerks of
respective drawee banks/branches in each clearing center shall sign the shipping
manifest. These clearing office statements and/or the debit advice/s shall serve as
bases for the head offices in the Manila clearing area to record the results of
out-of-town exchanges in their books on the date of receipt.
(b) Procedure for Special Clearing
Demands may be presented directly to the drawee banks/branches, institutions
or entities concerned at times other than that specified in Section 1. For this purpose,
the Special Clearing Receipt (Cash Form No. 10) shall be used. The original and
duplicate copies of the receipt shall be retained by the sending bank/branch, institution
or entity and the triplicate shall be delivered to the drawee bank/branch. At the
following clearing session, the original of the Special Clearing Receipt shall be
presented as a demand against the bank/branch, institution or entity concerned.
Nothing in this section shall prevent direct settlement between the parties concerned.
(c) Procedure for Returned Items
Items which should be returned for any reason whatsoever shall be presented
not later than the next regular clearing for local exchanges. Out-of-town exchanges
shall be returned within the period specified in the Memorandum to Authorized Agent
Banks announcing the opening of clearing facilities in each of the authorized regional
clearing centers. Items for return shall be sealed in special red envelopes and shall be
considered and accounted for as debits to the demanding banks/branches, institutions
or entities and credits to the returning banks/branches, institutions or entities. Nothing
in this section shall prevent direct settlement of returned items between the parties
concerned.
Items which have been the subject of a material alteration or items bearing a
forged endorsement when such endorsement is necessary for negotiation shall be
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returned within twenty-four (24) hours after discovery of the alteration or the forgery
but in no event beyond the period fixed or provided by law for filing of a legal action
by the returning bank/branch, institution or entity sending the same.
Missorts or items misdirected through clearing shall be returned at the next
clearing session in special yellow envelopes and shall be accounted for as debits to the
bank/branch, institution or entity which had misdirected the items.
(d) Procedure for Excluded Member(s)
In case any bank/branch, institution or entity is excluded from clearing on any
day on account of tardiness or absence, value shall be given to deliveries of the others
present for credit to their accounts in accordance with normal settling procedures. The
total of said deliveries shall be debited to the account of the excluded bank/branch,
institution or entity. The bank/branch, institution or entity excluded from clearing
shall, as heretofore, send its representative to the Clearing Office/Unit to prepare the
clearing statement and accept deliveries on it. In case of failure to send its
representative, the Clearing Office/Unit shall, in the meantime, receive such deliveries
which should be picked up by the excluded bank/branch, institution or entity not later
than 5:30 P. M. on the same day.
In the event of strike or force majeure which presents a bank/branch, institution
or entity allowed to clear from having access to its records or otherwise ascertaining
whether checks delivered to it shall be honored or returned, notice of such
circumstances shall immediately be given to the Central Bank Clearing Office/Unit. In
such cases, items drawn against the bank/branch, institution or entity concerned shall
not be presented for clearing.
SECTION 5. Loss of Clearing Items
Any loss or damaged arising from theft, pilferage, or other causes affecting it
in transit shall be for the account of the sending bank/branch, institution or entity
concerned.
(SGD.) G. S. LICAROS
Governor
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