Chapter 46. Calculations.
Article 861. Cash and non-cash payments.
1. Settlements with the participation of citizens that are not related to their entrepreneurial activity may be made in cash (Article 140) without limiting the amount or by cashless transfer.
2. Settlements between legal entities, as well as settlements with the participation of citizens, connected with the implementation of entrepreneurial activities by them, shall be made in non-cash form. Settlements between these persons may also be made in cash, unless otherwise provided by law.
3. Non-cash payments are made through banks, other credit organizations (hereinafter - banks), in which the relevant accounts are opened, unless otherwise provided by law and due to the form of payment used.
Article 862. Forms of non-cash payments.
1. When carrying out non-cash payments, payments are allowed by payment orders, under a letter of credit, checks, collection payments, as well as calculations in other forms stipulated by law, banking rules established in accordance with it and business practices used in banking practice.
2. The parties to the contract shall have the right to elect and establish in the contract any of the forms of settlement referred to in paragraph 1 of this article.
Article 863. General provisions on the settlement of payment orders.
1. When making a payment order, the bank undertakes, on behalf of the payer, using the funds in its account to transfer a certain amount of money to the account of the person specified by the payer in this or another bank within the period prescribed by law or established in accordance with it, if shorter the term is not stipulated by the bank account agreement or is not determined by the customs of business turnover used in banking practice.
2. The rules of this paragraph shall apply to relations connected with the transfer of funds through a bank by a person who does not have an account with this bank, unless otherwise provided by law, bank rules established in accordance with it, or does not follow from the essence of these relations.
3. The procedure for effecting settlements by payment orders is regulated by law, as well as banking rules established in accordance with it and the customs of business turnover applied in banking practice.
Article 864. Conditions for execution by a bank of a payment order.
1. The content of the payment order and the settlement documents submitted with it and their form must comply with the requirements provided by the law and the banking rules established in accordance with it.
2. If the payment order does not comply with the requirements specified in clause 1 of this article, the bank may clarify the content of the order. Such a request must be made to the payer immediately upon receipt of the order. If the answer is not received within the time provided for by the law or banking rules established in accordance with it, and if they are not available, the bank can leave the order without execution within a reasonable time and return it to the payer, unless otherwise provided by law, established by the banking rules or agreement between the bank and the payer.
3. The order of the payer is executed by the bank if funds are available on the payer's account, unless otherwise provided by the agreement between the payer and the bank. Orders are executed by the bank in compliance with the order of withdrawal of funds from the account (Article 855).
Article 865. Execution of instructions.
1. A bank that has accepted a payment order of the payer is obliged to transfer the corresponding amount of money to the beneficiary's bank for crediting it to the account of the person specified in the order within the period established by paragraph 1 of Article 863 of this Code.
2. The bank has the right to attract other banks to carry out operations on the transfer of funds to the account specified in the client's order.
3. The bank is obliged to immediately inform the payer at his request about the execution of the order. The order of registration and requirements for the content of the notice on the execution of the order are provided by law, established in accordance with the banking rules or by agreement of the parties.
Article 866. Responsibility for non-execution or improper execution of the order.
1. In case of non-fulfillment or improper execution of the client’s order, the bank shall be liable on the grounds and in the amounts provided for by Chapter 25 of this Code.
2. In cases where non-performance or improper execution of the order occurred in connection with violation of the rules for performing settlement operations by the bank engaged to execute the order of the payer, the responsibility provided by paragraph 1 of this article may be imposed by the court on this bank.
3. If the violation of the rules for performing settlement operations by the bank resulted in unlawful withholding of funds, the bank is obliged to pay interest in the manner and amount provided for in Article 395 of this Code.
Article 867. General provisions on settlements under a letter of credit.
1. When calculating a letter of credit, a bank acting on behalf of the payer to open a letter of credit and in accordance with its indication (the issuing bank) undertakes to pay the recipient of funds or pay, accept or take into account a bill of exchange or authorize another bank (executing bank) to make Payments to the recipient of funds or pay, accept or take into account the bill of exchange.
For the issuing bank making payments to the recipient of funds or paying, accepting or taking into account the bill of exchange, the rules on the executing bank apply.
2. In the event of opening a covered (deposited) letter of credit, the issuing bank, upon its opening, is obliged to transfer the amount of the letter of credit (coverage) at the expense of the payer or the credit granted to it at the disposal of the performing bank for the entire term of the issuing bank's obligation.
In the case of opening an uncovered (guaranteed) letter of credit, the performing bank is granted the right to write off the entire amount of the letter of credit from the account of the issuing bank with it.
3. The procedure for effecting settlements under a letter of credit is regulated by law, as well as banking rules established in accordance with it and business practice applied in banking practice.
Article 868. Revocable letter of credit.
1. A letter of credit is recognized as revocable, which can be changed or canceled by the issuing bank without prior notification of the recipient of funds. Recalling a letter of credit does not create any obligations of the issuing bank to the recipient of funds.
2. The executing bank is obliged to make a payment or other operations on a revocable letter of credit, if by the time of their execution they had not received notice of a change in the conditions or cancellation of the letter of credit.
3. A letter of credit is revocable, unless otherwise expressly stated in its text.
Article 869. Irrevocable letter of credit.
1. A letter of credit is recognized to be irrevocable, which cannot be canceled without the consent of the recipient of funds.
2. At the request of the issuing bank, the executing bank participating in the conduct of a letter of credit operation can confirm an irrevocable letter of credit (confirmed letter of credit). Such confirmation means that the performing bank accepts an obligation to make payment in addition to the obligation of the issuing bank in accordance with the conditions of the letter of credit.
An irrevocable letter of credit, confirmed by the performing bank, cannot be changed or canceled without the consent of the performing bank.
Article 870. Execution of a letter of credit.
1. For the execution of a letter of credit, the recipient of funds shall submit to the executing bank documents confirming the fulfillment of all the conditions of the letter of credit. In case of violation of at least one of these conditions, the letter of credit is not performed.
2. If the performing bank has made a payment or carried out another operation in accordance with the conditions of the letter of credit, the issuing bank shall be obliged to reimburse it for the costs incurred. These expenses, as well as all other expenses of the issuing bank related to the execution of the letter of credit, are reimbursed by the payer.
Article 871. Refusal to accept documents.
1. If the executing bank refuses to accept documents that, on external grounds, do not comply with the conditions of the letter of credit, it must immediately inform the recipient of the funds and the issuing bank with an indication of the reasons for the refusal.
2. If the issuing bank, having received the documents accepted by the executing bank, considers that they do not meet the conditions of the letter of credit on external grounds, he is entitled to refuse to accept them and to demand from the executing bank the amount paid to the recipient of funds in violation of the conditions of the letter of credit refuse to refund the amounts paid.
Article 872. Responsibility of a bank for violation of the conditions of a letter of credit.
1. Responsibility for violation of the conditions of a letter of credit to the payer shall be borne by the emitting bank, and to the emitting bank by the performing bank, except in cases provided for in this article.
2. In the event of an unjustified refusal by the executive bank to pay cash under a covered or confirmed letter of credit, responsibility to the recipient of funds may be placed on the performing bank.
3. In the case of an executing bank of an incorrect payment of funds under a covered or confirmed letter of credit due to violation of the conditions of a letter of credit, responsibility to the payer may be placed on the performing bank.
Article 873. Closing of a letter of credit.
1. Closing of a letter of credit in the executing bank:
upon expiration of the letter of credit;
at the request of the recipient of funds to refuse to use the letter of credit before its expiration, if the possibility of such refusal is provided for by the conditions of the letter of credit;
at the request of the payer of the full or partial revocation of the letter of credit, if such a recall is possible under the terms of the letter of credit.
The executing bank must notify the issuing bank of the closing of the letter of credit.
2. The unused amount of the covered letter of credit is subject to return to the issuing bank immediately at the same time as the letter of credit is closed. The issuing bank is obliged to credit the amounts returned to the payer's account from which funds are deposited.
Article 874. General provisions on settlements under collection.
1. When making settlements under the collection, the bank (the issuing bank) undertakes, on behalf of the client, to carry out, at the expense of the client, actions to obtain payment from the payer and (or) payment.
2. The issuing bank that received the client’s order has the right to involve a different bank (the performing bank) for its execution.
The procedure for effecting settlements under a collection is regulated by law, banking rules established in accordance with it and customs of business turnover applied in banking practice.
3. In the event of non-performance or improper execution of the client's order, the issuing bank is liable to it on the grounds and in the amount provided for by chapter 25 of this Code.
If non-fulfillment or improper execution of the client’s order occurred in connection with a violation of the rules for the settlement of the settlement operations by the executive bank, responsibility to the client may be assigned to this bank.
Article 875. Execution of a collection order.
1. In the absence of any document or inconsistency of documents on external features of a collection order, the performing bank is obliged to immediately notify the person from whom the collection order was received. In case of failure to eliminate the indicated defects, the bank has the right to return the documents without execution.
2. Documents shall be submitted to the payer in the form in which they are received, with the exception of marks and inscriptions of banks required for the execution of a collection operation.
3. If the documents are subject to payment upon presentation, the executing bank must make a presentation for payment immediately upon receipt of a collection order.
If documents are due for payment at another time, the executing bank must submit documents for acceptance immediately upon receipt of a collection order to receive the payer's acceptance, and the payment request must be made no later than the day on which the payment period specified in the document comes.
4. Partial payments may be accepted in cases where this is established by bank rules, or with a special permit in the collection order.
5. The received (collected) amounts must be immediately transferred by the executive bank to the issuing bank, which is obliged to credit these amounts to the client’s account. The executing bank has the right to withhold from the collected amounts the remuneration due to him and the reimbursement of expenses.
Article 876. Notification of operations performed.
1. If the payment and (or) acceptance were not received, the performing bank shall immediately notify the emitting bank of the reasons for non-payment or refusal of acceptance.
The issuing bank is obliged to immediately inform the client of this by requesting instructions from him for further action.
2. In the event of failure to receive instructions on further actions within the period established by banking rules, and in case of its absence, within a reasonable time period, the executing bank shall have the right to return the documents to the issuing bank.
Article 877. General provisions on payment by check.
1. A check is recognized as a security containing an unconditional order of the drawer of the drawer to the bank to make a payment of the amount specified in it to the check holder.
2. As a payer of a check, only a bank can be indicated, where the drawer of the drawer has the means that he is entitled to dispose of by issuing checks.
3. Revocation of a check before the expiration of the period for its presentation is not allowed.
4. Issuance of a check does not repay a monetary obligation, in fulfillment of which it was issued.
5. The procedure and conditions for the use of checks in payment transactions are governed by this Code, and, to the extent not regulated by it, other laws and banking rules established in accordance with them.
Article 878. Check details.
1. The check must contain:
1) the name "check" included in the text of the document;
2) an order to the payer to pay a certain amount of money;
3) the name of the payer and an indication of the account from which payment is to be made;
4) indication of the currency of payment;
5) an indication of the date and place of drawing up the check;
6) the signature of the person who wrote the check - the drawer.
The absence in the document of any of the specified details deprives him of the strength of the check.
A check that does not contain an indication of the place of its compilation is considered as signed at the location of the drawer.
The indication of interest is considered unwritten.
2. The form of the check and the procedure for filling it out shall be determined by law and the banking rules established in accordance with it.
Article 879. Payment of check.
1. The check is paid at the expense of the drawer.
In the case of depositing funds, the procedure and conditions for depositing funds to cover a check are established by banking rules.
2. A check is payable by the payer on the condition that it is presented for payment within the period prescribed by law.
3. The payer of the check is obliged to verify by all means available to him of the authenticity of the check, as well as that the bearer of the check is an authorized person.
When paying for an endorsed check, the payer is obliged to verify the correctness of the endorsements, but not the signatures of the endorsers.
4. Losses incurred as a result of payment by the payer of a forged, stolen or lost check shall be borne by the payer or the drawer of the check, depending on whose fault they were caused.
5. The person who has paid the check has the right to demand the transfer of the receipt to him to the receipt of payment.
Article 880. Transfer of rights by check.
1. The transfer of rights by check shall be made in the manner established by Article 146 of this Code, in compliance with the rules provided for by this Article.
2. Personal check is not transferable.
3. In the transfer check, the endorsement to the payer has the power of receipt for receipt of payment.
The endorsement by the payer is invalid.
A person owning a transfer check received on an endorsement shall be considered to be its legal owner if it bases its right on a continuous series of endorsements.
Article 881. Payment Guarantee.
1. A check payment can be guaranteed in full or in part by means of an aval.
The guarantee of payment by check (aval) can be given by any person, except for the payer.
2. The aval is affixed on the face of the check or on an additional sheet by the inscription "take it for the aval" and an indication of who and for whom it was given. If it is not indicated for whom it is given, then it is considered that the aval is given for the drawer.
Aval is signed by an avalist with an indication of his place of residence and the date of the inscription, and if the avalist is a legal entity, its location and the date of the inscription.
3. An avalist is liable in the same way as the one for whom he has given an aval.
His obligation is valid even if the obligation that he guaranteed is void on any basis other than non-compliance with the form.
4. An avalist who has paid the check shall acquire rights arising from the check against the one for whom he has given a guarantee and against those who are obliged to the latter.
Article 882. Collection of check.
1. The submission of a check to the bank serving the check holder for collection of payment is considered the presentation of the check for payment.
Payment of the check is made in the manner prescribed by Article 875 of this Code.
2. The funds are credited to the check holder’s account for the collected check upon receipt of payment from the payer, unless otherwise provided by the contract between the check holder and the bank.
Article 883. Certificate of Refusal to Pay a Check.
1. Refusal to pay a check must be certified in one of the following ways:
1) a protest by a notary or the drawing up of an equivalent act in the manner prescribed by law;
2) stamp of the payer on the check on refusal to pay it with the date of submission of the check for payment;
3) a stamp of the collecting bank indicating the date that the check was promptly issued and not paid.
2. A protest or an equivalent act must be made before the expiration of the time limit for presenting the check.
If the presentation of the check took place on the last day of the term, a protest or an equivalent act may be made on the next business day.
Article 884. Notice of non-payment of the check.
The check holder is obliged to notify his endorser and the drawer of the non-payment within two working days following the day of the protest or an equivalent act.
Each endorser must, within two working days following the day they receive the notice, bring to the notice of their endorser the notice received by him. In the same period, a notice is sent to the one who gave the aval for that person.
He who did not send the notice within the specified period shall not lose his rights. It compensates for losses that may occur due to non-notification of non-payment of a check. The amount of damages cannot exceed the amount of the check.
Article 885. Consequences of non-payment of a check.
1. In the event that the payer refuses to pay the check, the check holder is free to sue one, several or all of the persons obliged to check (the drawer, avalists, endorsers) who are jointly and severally liable to him.
2. The check holder shall have the right to demand from these persons payment of the check amount, their costs of receiving payment, as well as interest in accordance with paragraph 1 of Article 395 of this Code.
The same right belongs to the person obliged to check after it has paid the check.
3. The claim of the check holder against the persons specified in clause 1 of this article may be brought within six months from the date of the expiry of the period for presenting the check for payment. Regressive claims for claims of obligated persons to each other are repaid with the expiration of six months from the day when the corresponding obligated person has satisfied the claim, or from the day of filing a claim to him.
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