BSP Circular No. 580-77

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    Copyright 2014 CD Technologies Asia, Inc. Bangko Sentral ng Pilipinas 2013 1

    September 19, 1977

    CBP CIRCULAR NO. 580-77

    SUBJECT : Amendment Of Circular No.317, Series of 1970 and

    Circular No.432, Series of 1974

    SECTION 1. Time and Place of Exchange

    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 groundfloor 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 center and/or at such other times which may be fixed by

    the Central Bank. LexLib

    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 abank/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 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

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    the Philippines shall in no way be responsible for any flaws or defects in the items

    or 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 thebank/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 an a debit against the Central Bank

    of the Philippines. LexLib

    Treasury Bills for return may be sent through clearing following the

    procedure stated under Section 4 (c) hereunder

    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 duplicate shall be shipped to or retained in the Manila Clearing Office, as the

    case may be.

    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

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    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 acknowledgment of receipt of out-of-town demands, the duplicate of the

    Clearing Office Statement and/or the original of the debit advice/s, settling clerksof 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. Theoriginal 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 center. 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 present 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

    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 against the

    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

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    to the bank/branch, institution or entity which had misdirected the items. LexLib

    d) Procedure for Excluded Member(s)

    In case any bank/branch, institution or entity is excluded from clearing onany 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 prevents 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 damage arising from theft, pilferage, or other causes affecting

    items in transit shall be for the account of the sending bank/branch, institution or

    entity concerned.

    (SGD.) G. S. LICAROS

    Governor

    Clearing Centers Suburban Towns Cities Within the

    Clearing Areas

    1. Manila Quezon City, Pasay City, Caloocan

    City, San Juan, Mandaluyong, Makati,

    Paraaque, Navotas, Malabon,

    Marikina, Pasig- Metro Manila,

    Guagua,

    2. Angeles City Pampanga; San Fernando- Pampanga

    3. Bacolod City

    4. Cagayan de Oro City

    5. Cebu City Mandaue-Cebu

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