Bản dịch văn bản 159/2003/NĐ-CP
nghi-dinh-159-2003-nd-cp
Cơ quan ban hành: Chính phủ
Ngày ban hành: 2003-12-10

DECREE No. 159/2003/ND-CP OF DECEMBER 10, 2003 ON THE SUPPLY AND USE OF CHECKS THE GOVERNMENT Pursuant to the Law on Organization of the Government of December 25, 2001; Pursuant to the Law on the State Bank of Vietnam of December 12, 1997; Pursuant to the Law on Credit Institutions of December 12, 1997; At the proposal of the Governor of the State Bank of Vietnam, DECREES: Chapter I GENERAL PROVISIONS Article 1.- Subjects of regulation and scope of application This Decree prescribes the supply and use of checks, including: supply, drawing, transfer, guarantee, payment, recourse, initiation of lawsuits and other arising matters related to checks supplied by the payment service-providing organizations operating in the Vietnamese territory. Article 2.- Right to agree on the application of this Decree to checks supplied outside the Vietnamese territory For checks supplied outside the Vietnamese territory but used in the Vietnamese territory, the involved parties may agree on the application of this Decree. Article 3.- Application of international treaties and practices 1. In cases where international treaties which the Socialist Republic of Vietnam has signed or acceded to contain provisions different from those of this Decree, such international treaties shall apply. 2. Parties participating in the supply and use of checks in international payment activities may agree on the application of international practices, provided that such practices are not contrary to the law of the Socialist Republic of Vietnam. Article 4.- Interpretation of terms In this Decree, the following terms shall be construed as follows: 1. "Check" means a payment instrument made in form of pre-printed voucher by a drawer, ordering the payer to pay unconditionally a certain sum of money to the beneficiary in compliance with the provisions of this Decree. 2. "Blank check" means a voucher for making a check, pre-printed by a payment service-providing organization according to the set form with contents of the elements prescribed in Clauses 1 and 2, Article 14 of this Decree not yet fully filled in, and therefore not yet valid as a check. From this voucher, persons supplied with blank checks shall make a check to pay to the payee. 3. "Supply of blank checks" means the supply of blank checks by payment service-providing organizations to organizations and individuals being their customers that have the demands to use checks. 4. "Drawer" means a person who makes and signs a check to order the payer to pay a sum of money inscribed in the check on his/her behalf. 5. "Payee" means a person designated by the drawer to have the right to enjoy or transfer the right to enjoy the sum of money inscribed in the check. 6. "Beneficiary" means a person who holds a check which: a/ Is inscribed with the name of the payee being himself/herself; or b/ Is not inscribed with the name of the payee or is inscribed with the phrase "pay to the check holder;" or c/ Has been transferred by endorsement for himself/herself through a row of consecutive transfer signatures. 7. "Payer" means a payment service-providing organization where the drawer is entitled to use a payment account with a certain sum of money for drawing checks under an agreement between the drawer and such payment service-providing organization. 8. "Collector" means a payment service-providing organization which provides the service of collecting checks. 9. "Check clearing payment center" means the State Bank or a payment service-providing organization licensed by the State Bank to organize and take the prime charge of the check exchange or clearing payment and settlement of financial obligations arising from the check payment to the payment service-providing organizations being their members. 10. "Drawing date" means the date inscribed by the drawer in a check to serve as basis for counting the time limit for presenting the check. The drawing date inscribed in the check may be the time when the check is actually drawn or after the time when the check is actually drawn for the payee. 11. "Check transfer" means that a beneficiary transfers checks and the rights related to checks according to the provisions of this Decree to another person. 12. "Check warrant" means that the payer secures the payment of a check when such check is presented for payment within the presentation time limit. 13. "Presentation time limit" means the duration counting from the drawing date inscribed in a check to the end of the day when the check is unconditionally paid upon its presentation. 14. "Suspension of check payment" means that the drawer issues a written notice requesting the payer not to pay a check he/she has drawn. 15. "Check recourse" means that the beneficiary carries out procedures to claim the sum of money inscribed in the check which has been presented within the presentation time limit but refused to be paid. 16. "Check-related signee" means a person who has signed and is related to the check in his/her capacity as a drawer, transferor, guarantor or warrantor. 17. "Persons" referred to in this Decree are construed as individuals, legal persons and other subjects in civil relations. Article 5.- Drawing and payment of checks inscribed with foreign-currency sums Checks may be drawn in foreign currency(ies) in cases where the drawers are allowed to pay foreign currency sums and the payees are the subjects allowed to receive foreign currencies according to the law provisions on foreign exchange management. Checks drawn in foreign currencies must be clearly inscribed with the names of the payees and must not be transferred, except where they are transferred to the payment service-providing organizations defined in Article 24 of this Decree. The payment of checks drawn in foreign currencies must comply with the Vietnamese law provisions on foreign exchange management. Article 6.- Obligation of drawers to pay sums of money inscribed in checks Drawers are obliged to unconditionally pay the whole sums of money inscribed in checks they have drawn. Any agreement which prescribes that the drawer does not have to fulfill this obligation is invalid. Article 7.- Rights and obligations of check-related signees 1. Persons who have given their signatures related to checks in their capacity as drawers, transferors, guarantors or warrantors shall have the rights and obligations over the checks according to the provisions of this Decree. 2. If, in relation to a check, there is also the signature of a person irrelevant to the check, forged signature or signature of a non-existent person or signature of a person having no relations with the person having signed the check, the signatures of the persons having the rights and obligations mentioned in Clause 1 of this Article shall still be fully effective. Article 8.- Responsibilities of check-related signees in their capacity as representatives 1. Signees related to checks in their capacity as representatives include: a/ Representatives at law of legal persons, households, cooperative groups; b/ Representatives authorized by representatives at law of legal persons, households or cooperative groups; c/ Representatives authorized by individuals . 2. Signors related to checks in their capacity as representatives must express their representative capacity and names of the persons they represent. Represented persons are responsible to pay sums of money of the checks signed by the representatives within their representative competence. 3. In cases where signees are related to checks in their capacity as representatives but are incompetent to represent or where they are competent to represent but their representative capacity or names of persons they represent are not clearly stated, they shall have to bear personal responsibility for paying sums of money of such checks. 4. Signees related to checks in their capacity as representatives, who act beyond their representative competence, shall have to bear personal responsibility for the consequences of signing the check beyond their competence. Article 9.- Designation regarding the payment of interests on sums inscribed in checks Any designation written in checks regarding the payment of interests on sums of money inscribed in such checks is invalid. Article 10.- Acceptance of checks in payment The acceptance of checks in payment must be totally freewill and agreed upon between the drawer and the payee, or between the check transferor and transferee. Article 11.- Time limits and force majeure events 1. The time limit for presenting checks, the time limit for sending recourse notices prescribed in this Decree shall include the law-prescribed public holidays. If the ending days of the above-said time limits are law-prescribed holidays, such time limits shall be put off till the next working days immediately after such prescribed holidays. 2. In cases where a force majeure event occurs, rendering it impossible to present checks for payment or send recourse notices within the prescribed time limit, such time limit shall be prolonged till the end of such force majeure event, but must not exceed 6 months after the drawing date. Force majeure events are those which occur in an objective manner beyond anticipation and beyond remedies even though possible necessary measures have been already applied. 3. The beneficiaries or the persons authorized by the beneficiaries to present checks or the persons responsible to send recourse notices shall have to notify and prove the occurrence of force majeure events to the payers (for case of check presentation for payment) or receivers of recourse notices (for case of check recourse), so that the payers or recourse notice receivers (other than drawers) shall notify the drawers of such force majeure events. If they accept the force majeure reasons, the drawers or recourse notice receivers shall certify the receipt of the notices, clearly stating the date, signatures and that the payment has been made according to regulations. Chapter II SUPPLY OF CHECKS Article 12.- Supply of blank checks 1. Organizations supplying blank checks and scope of supply of blank checks: a/ The State Bank shall supply blank checks to credit institutions and other organizations which open payment accounts at the State Bank; b/ The banks shall supply blank checks to organizations and individuals that are permitted to use payment accounts to draw checks according to agreements between the two sides; c/ Other organizations permitted to provide check payment services shall supply blank checks to organizations and individuals that are permitted to use payment accounts to draw checks according to agreements between the two sides. 2. Check-supplying organizations shall agree with the persons supplied with checks on the conditions and terms for use of checks supplied by themselves, ensuring that such use is not contrary to law. Article 13.- Printing, delivery, reception and preservation of blank checks 1. The check-supplying organizations shall organize the printing of blank checks for supply to users. 2. Before blank checks are printed and supplied for use, the check-supplying organizations shall have to register and deposit the blank check form at the State Bank. The delivery, receipt and preservation of blank checks shall comply with the current regulations of the State Bank on delivery, receipt and preservation of important prints. Chapter III ELEMENTS OF CHECKS AND CHECK DRAWING Article 14.- Elements of checks 1. On the front side of a check, there are the following elements: a/ The word "Check" printed on the upper part of the check; b/ The serial number of the check; c/ The payee; d/ The sum of money, written in both figures and words; e/ The name of the payer; f/ The place of payment; g/ The drawing date; h/ The signature (with the full name) of the drawer. 2. Any voucher which lacks one of the elements prescribed in Clause 1 of this Article shall not be valid as a check, except for the following cases: a/ If no payment place is stated, the payment place shall comply with the provisions in Clause 3, Article 28 of this Decree; b/ If the name of the payee is not inscribed, the sum of money inscribed in the check shall be paid to the check holder. 3. The elements pre-printed in blank checks supplied by the payment service-providing organizations in the Vietnamese territory must be printed in the Vietnamese language. Checks may also be printed in a common foreign language below the Vietnamese-language inscription, provided that such foreign-language inscription must be neither larger nor bolder than the Vietnamese-language one. 4. Apart from the elements prescribed in Clause 1 of this Article, the check-supplying organizations may insert other elements provided that they do not give rise to more legal obligations of the concerned parties, such as: serial number of the payment account which the drawer is entitled to use to draw checks and other elements. In cases where a check is paid via the check clearing payment center, there must be in such check elements agreed upon with the check clearing payment center. 5. The back side of the check shall be used for inscription of the transfer contents. Article 15.- Size and arrangement of elements on checks 1. Check size and arrangement of elements on checks shall be designed and effected by the check-supplying organizations, except for cases where checks are paid via the check clearing payment center. 2. The check clearing payment center shall reach agreement with the payment service providing organizations being its members on the check size, elements and positions of elements on checks, for those paid via the check clearing payment center. Article 16.- Checks drawn to order the payment service-providing organizations Checks shall only be drawn to order one payment service-providing organization where the drawer is entitled to use a payment account and a sum of money for drawing check according to the agreement with such organization. Article 17.- Drawing of checks 1. Checks shall be drawn to order the payment of money to: a/ A designated person with permission for check transfer by clearly writing the name of the payee on the check following the phrase "pay to the order of" - or just the name of the payee without the said phrase; or b/ A designated person without permission for check transfer by clearly writing the name of the payee on the check following the phrase "not pay to the order of;" or c/ The a check holder by writing the phrase "pay to the check holder" or not writing the name of the payee. 2. Checks may be drawn to order the payment of money to the their own drawers. Article 18.- Drawing of checks by the payer Checks shall not be drawn to order the drawer himself/herself to act as the payer, except for cases where checks are drawn for payment of money from one unit to another unit of the payer. Article 19.- Sums of money inscribed on checks The sum of money inscribed on a check must be inscribed both in figures and words. In case of disparity between the sum in figures and the sum in words, the sum to be paid shall be the smaller one. Article 20.- Checks for payment in accounts and checks for cash payment 1. Check drawers or check transferors may disallow the payment of checks in cash by inscribing on the checks the phrase "pay in account." 2. For checks not inscribed with the phrase "pay in account," the beneficiary may be paid in cash. Chapter IV CHECK TRANSFER Article 21.- Transfer 1. For checks drawn and inscribed with the name of the payee a/ In case of one check drawn with the name of the payee inscribed after the phrase "pay to the order of" - or just inscribed with the name of the payee without this phrase, the payee may transfer such check by inscribing the name of the transferee, the date of transfer, his/her signature, full name and address on the back side of the check (hereinafter referred to as the endorsement) and hand over such check to the transferee. b/ The transferee of the said check may further transfer it by endorsing the same way. c/ The transferor of the said check may stop the further transfer of such check by inscribing the phrase "not for further transfer" before his/her signature." d/ The holder of the check transferred by means of endorsement shall be the beneficiary if such check has been continually transferred to him/her. 2. For checks drawn but not inscribed with the payee's name or inscribed with the phrase "pay to the check holder," the beneficiary may transfer by handing them to the transferee without endorsement. Article 22.- Effect of the transfer 1. When checks are transferred, all the rights related to them shall also be transferred to the transferees. 2. When checks are transferred, the whole sums of money inscribed thereon must be transferred. The partial transfer of the sums of money inscribed on the checks shall not be valid. 3. The transfer by the payers shall not be valid. Article 23.- Responsibilities of transferor 1. The transferor is responsible for paying the sum of money inscribed on the check to the transferee as well as subsequent transferees, except for the cases mentioned in Clause 2 below. 2. In cases where the transferor inscribes the phrase "not for further transfer" but such check is still further transferred, the transferor who has inscribed such phrase shall be responsible for paying the sum of money inscribed on the check only to the person he/she has personally transferred the check to. Article 24.- Transfer of checks to payment service-providing organizations 1. Check beneficiaries may transfer checks to one payment service-providing organization by means of endorsement. 2. The payment service providing organizations mentioned in Clause 1 of this Article have all the rights related to the checks. Such organizations shall only be allowed to further endorse such checks in the capacity as representatives of the persons who have endorsed the checks for them. Chapter V CHECK PAYMENT SECURITY Article 25.- Check warrant 1. If checks fully have the contents prescribed in Clauses 1 and 2, Article 14 of this Decree and the drawers have enough money to pay the checks when they are presented, the payers shall be obliged to warrant the check payment at the requests of the drawers by inscribing the phrase "payment guarantee" and give their signatures on the checks. 2. The payers are obliged to secure the payment for the already warranted checks presented for payment within the presentation time limit. Article 26.- Check guarantee 1. Checks shall be secured for payment of part or whole of the sums of money inscribed thereon by the guarantee by the third party (called the guarantor) other than the payer. 2. The guarantee shall be effected by the guarantor by way of inscribing the word "guaranteed", the guaranteed sum of money, the name of the guaranteed, the signature and name of the guarantor on the check or on the document enclosed with the check. 3. In cases where the guaranteed is not specified, the guaranteed shall be the check drawer. Article 27.- Rights and obligations of the guarantor and the guaranteed 1. The guarantor shall be responsible for the payment of the sum of money on the check like the guaranteed when the latter fails to perform or improperly performs the obligation to pay the sum of money on the check. In case where only a part of the sum of money inscribed on the check is guaranteed, the guarantor shall only be responsible for such guaranteed portion. 2. When the guarantor fulfills the guarantee obligation, the guarantor may request the guaranteed and the persons responsible for the guaranteed to perform the obligation to refund the sum of money which has been paid by the guarantor on their behalf. 3. The guarantor may request the guaranteed to pay remuneration (if so agreed). 4. The guaranteed shall be responsible to refund the sum of money which has been paid by the guarantor on his/her behalf. Chapter VI CHECK PRESENTATION AND PAYMENT Article 28.- Time limit and place for check presentation 1. The time limit for presenting a check is 30 days after the drawing date. 2. In cases where a force majeure event occurs, rendering it impossible for a check to be presented within the prescribed time limit for payment, the presentation time limit may be prolonged beyond the duration prescribed in Clause 1 of this Article and right after the end of such event, the check must be presented for payment. The prolonged duration in this case shall not exceed 6 months counting from the drawing date. 3. Within the said time limit, a check must be presented for payment at: a/ The payment place inscribed on the check; or b/ If the payment place is not inscribed on the check, such check must be presented for payment at the address of the payer; or c/ If the check is not inscribed with the payment place and the payer's address is unidentified, such check shall be presented for payment at the head office of the payer; or d/ If the check is allowed to be paid via the check clearing payment center according to Article 29 of this Decree, such check shall be presented for payment at the check clearing payment center. Article 29.- Presentation of checks at the check clearing payment center The payment service-providing organizations shall present checks for payment at the check clearing payment center according to their agreements with the check clearing payment center. Article 30.- Presentation of checks through collectors Beneficiaries who do not directly present checks may authorize one payment service-providing organization to present checks on their behalf according to Article 28 of this Decree, on the basis of a written collection agreement with such organization. In this case, the rights and obligations of the payment service-providing organization which performs the check collection service according to the agreement between the two parties shall comply with current law provisions. Article 31.- Payment 1. For checks presented for payment within the presentation time limit and at the presentation places prescribed in Article 28 of this Article, the payer shall have to pay them on the date of presentation or the next working day following such date, if the drawers have enough sums of to be-used money to pay such checks. The payers who fail to comply with the above regulation shall have to pay to the beneficiaries damage compensations, which are at most equal to the interests of the sums of money inscribed on the checks, counting from the date the checks are presented for payment at the fining interest rate for late check payment prescribed by the State Bank for application at the time of check presentation. In cases where checks are presented for payment before the drawing date inscribed thereon, the payment shall only be made as from the drawing date inscribed on the checks according the above provisions. 2. For checks presented after the presentation time limit but not later than 6 months after the drawing date, the payers may still make the payment if they receive no notice on suspension of payment for such checks and the drawers have enough sums of to be-used money to pay such checks. 3. In cases where sums of money used by the drawers in drawing checks are not enough to pay wholly the sums of money inscribed on such checks according to the provisions in Clauses 1 and 2 of this Article, if the beneficiaries request the payment of part of the sums of money inscribed on the checks, the payers shall be obliged to pay at the request of the beneficiaries within the sums of money which the drawers currently have and can be used to pay checks. When paying part of the sums of money inscribed on the checks, the payers shall have to clearly inscribe the paid amounts on the checks and return such checks to the beneficiaries or persons authorized by the beneficiaries. The beneficiaries or persons authorized by the beneficiaries shall have to make receipts of such payment and hand them to the payers. Receipts in these cases are considered vouchers evidencing the payment of part of the sums of money on the checks for the payers. 4. In cases where the checks are presented for payment after the drawers die or lose their civil act capacity, such checks shall remain valid for payment according to the provisions in Clauses 1, 2 and 3 of this Article. 5. The payment of checks at the payers shall terminate after 6 months counting from the drawing date inscribed on the checks. Article 32.- Payment of checks for payment to accounts and checks for payment in cash 1. For checks with the phrase "pay to account," the payers shall only transfer the sums of money inscribed in such checks to accounts of the beneficiaries without being allowed to make payment in cash even in cases where the phrase "pay in account" is crossed out. The payer who fails to comply with this regulation shall be responsible for the lost money amount which may arises but must not exceed the sum of money inscribed in the check. 2. For checks without the phrase "pay in account," the payers may pay the sums of money inscribed on such checks in cash or make account transfers at the requests of beneficiaries. Article 33.- Payment of transferred checks Payers, when paying a check transferred by means of endorsement, shall have to examine it to ensure the continuity of the transfer signatures. Article 34.- Suspension of check payment 1. Drawers may request the suspension of the payment of the checks they have signed by notifying such to the payers who shall stop the payment when such checks are presented at the payers. Payment suspension notices shall be valid only after the time limit for presenting checks. 2. Drawers shall still be obliged to pay the sums of money inscribed on checks after the payment of such checks is rejected by payers according to their payment suspension notices. Article 35.- Refusal to pay checks Payers and the check clearing payment centers, when refusing to pay checks, shall have to make written certifications of payment refusal, clearly stating the serial numbers of the checks, the refused sums on money, reasons for refusal, date of presentation, names and addresses of check drawers, give their signatures and hand them to the check presenters. Article 36.- Rights and responsibilities of persons who lose their checks 1. Persons supplied with blank checks and beneficiaries shall have to preserve checks. If they lose checks, they shall be liable for damage caused by the abuse of the lost checks. 2. Cases of check loss shall be handled as follows: a/ If the check losers are persons who are supplied with blank checks and lose the blank checks or checks they had drawn, they shall have to notify the check loss and the suspension of payment of such checks to the payers; b/ If the check losers are beneficiaries, they shall have to notify the check loss to the payers and at the same time request, directly or via the previous check transferors, the drawers to notify the suspension of payment of such checks to the payers. 3. Persons who have lost their checks shall still have the right over the lost checks according to the provisions of this Decree, provided that such persons can prove they are beneficiaries of the checks, which have not yet been abused for payment. Article 37.- Responsibilities of payers toward lost checks 1. If the payers have received check lost notices, they shall, when such checks are presented for payment, have to temporarily suspend the payment and seize such checks for five days, and at the same time notify the presentation of checks, names, addresses and people's identity card numbers (or equivalent papers prescribed by law) of the check presenters to the persons who have sent check lost notices right on the date of check presentation or the working day following such date. The payers who fail to comply with this regulation shall be responsible for the lost amount which may arises but must not exceed the sums of money inscribed on the checks. 2. If within the duration of suspension of payment of checks prescribed in Clause 1 of this Article, the persons notifying the check loss acquire no evidence to prove the unlawfulness of the check presenters, the sums of money in the checks shall, upon the expiry of such duration, be paid to the beneficiaries. In this case, the persons notifying the check loss shall be liable for the losses caused by the late check payment to the beneficiaries, which shall be at most equal to the interests of the sums of money inscribed on the checks counting from the date such checks are presented for payment at the fining interest rate for late check payment prescribed by the State Bank for application at the time of check presentation. 3. The payers shall not be responsible for the losses caused by the abuse of the lost checks, if before receiving the check loss notices, such checks have already been presented and paid in strict compliance with this Decree. Chapter VII CHECK RECOURSE Article 38.- Right to recourse Beneficiaries have the right to recourse from drawers, transferors, guarantors and other obligators related to the checks the sums of money inscribed on the checks if such checks are presented within the presentation time limit but refused for payment with written certifications of payment refusal made by the payers or the check clearing payment center. Article 39.- Sending of recourse notices The recourse must be effected by making recourse notices enclosed with copies of written certifications of payment refusal and sent according to the following regulations: 1. For checks inscribed with the names of payees and already transferred by means of endorsement, the beneficiaries shall have to send recourse notices and copies of written certifications of payment refusal to the drawers and concurrently to the persons having directly transferred such checks to them (if any) within four days after receiving the written certifications of payment refusal to request the payment of sums of money inscribed on the checks. The recourse notice receivers, who are also transferees, shall, within four days after receiving the notices, have to further notify the persons who have transferred the checks to them that the checks are recoursed, clearly stating the names and addresses of the persons that have sent the notices. This notification shall continue until the drawers receive notices on check payment refusal. For checks under guarantee, the notification of check payment refusal to the check guarantors shall also comply with the above-said procedures and regulations. 2. For checks not inscribed with the names of payees, the beneficiaries shall have to send recourse notices to the drawers within four days after receiving written certifications of payment refusal to request the payment of sums of money inscribed on the checks. 3. In cases where notices are sent by mail, the time of sending notices shall be the date inscribed on the post marks of the sending places. Article 40.- Responsibilities and rights of persons related to recoursed checks 1. Recourse notice receivers shall be liable to pay the recoursed sums of money in the checks to the beneficiaries who have sent the recourse notices to them. Persons subject to the recourse, when paying the recoursed sums of money, may request the return of the checks and written certifications of payment refusal. 2. The payers of the recoursed sums of money in the checks, if being not the drawers of such checks, may carry out the recourse from the drawers, transferors, guarantors and other persons related to the checks having obligations toward them according to the provisions of this Decree. 3. Check drawers shall have to pay the recoursed sums of money on the checks they have drawn to the beneficiaries or the persons having paid the recoursed sums of money upon receiving the recourse notices. Article 41.- Recoursed sums of money 1. Persons who carry out the recourse of checks refused for payment may request the parties having obligations toward them to pay: a/ Sums of money of the checks refused to be paid; b/ Interests on the sums of money refused to be paid counting from the date the checks are presented for payment at the fining interest rate for late check payment prescribed by the State Bank for application at the time the checks are presented; c/ Expenses for the sending of recourse notices. 2. After paying the recoursed sums of money on the checks, the persons having made such payment may request the parties having obligations toward them to pay: a/ Sums of money they have paid according to Clause 1 of this Article; b/ Interests on the paid sums of money, counting from the date of payment of the checks at the fining interest rate for late check payment prescribed by the State Bank for application at the time the checks are presented; c/ Expenses for the sending of recourse notices. Article 42.- Extinction of the recourse right The recourse right shall extinct if the checks presented for payment after the presentation time limit prescribed in Clauses 1 and 2, Article 28 of this Decree are refused for payment. In this case, the checks shall be considered deeds of debt acknowledgement of the responsible persons related to the checks to the beneficiaries. Beneficiaries have the right to request the payment of debt amounts inscribed on the checks according to the order and procedures prescribed by law. Chapter VIII LAWSUIT INITIATION Article 43.- Lawsuit initiation If the recoursed sums of money on the checks are not paid, the beneficiaries may initiate lawsuits against the drawers and the persons with relevant obligations all together or separately. In cases where one of the persons with relevant obligations, who, when facing the recourse, has paid the sum of money on the check to the beneficiary, if not refunded with such recoursed sum of money, such person may has the right to initiate a lawsuit against the drawer and the persons having obligations toward him/her all together or separately. Article 44.- Scope of obligation subject to lawsuit initiation Persons initiating lawsuits on checks refused for payment may request persons having obligations towards them to pay the sum of money prescribed in Article 41 of this Decree. Article 45.- Order, procedures and statute of limitations for lawsuit initiation The order, procedures and statute of limitations for initiating lawsuits regarding unpaid checks shall comply with provisions of law. Chapter IX ACTS OF VIOLATION AND HANDLING THEREOF Article 46.- Strictly prohibited acts 1. Counterfeiting checks, modifying or erasing elements in checks for deceitful purposes. 2. Intentionally transferring or receiving transfer or presenting for payment a check, which is counterfeited, modified or erased for deceitful purposes or illegally possessed. 3. Forging signatures of other persons or giving signatures of non-existent persons on checks. 4. Intentionally transferring checks already refused for payment. 5. Intentionally drawing checks beyond the drawer's solvency as prescribed in Clause 2, Article 47 of this Decree. 6. Intentionally using checks after the right to draw checks has been suspended as prescribed in Clause 6, Article 47 of this Decree. Violating organizations and individuals shall have to make damage compensations, be banned from using checks, subject to administrative sanctions or examined for penal liability according to the provisions of law. Article 47.- Drawing of checks beyond the drawer's solvency 1. Any check, which is presented within the presentation time limit but the sum of money which the drawer can use by drawing checks at the payer is not enough to pay wholly the sum of money inscribed on such check, shall be considered a check beyond the drawer's insolvency. 2. An organization or individual that draws a check beyond its/his/her solvency and fails to perform the obligation to pay wholly the recoursed sum of money to the beneficiary or the person having paid the sum to the beneficiary shall be considered having intentionally drawn a check beyond its/his/her solvency. 3. An organization or individual that draws checks beyond its/his/her solvency, apart from having to pay the recoursed sum of money according to Article 41 of this Decree, shall also be handled as follows: a/ For the first-time violation, the payer shall have to send a caution notice to the drawer; b/ For the second-time violation, the payer shall have to temporarily suspend the right to draw checks of the recidivist for three months, not to supply blank checks to such person within the said duration, and at the same time withdraw blank checks already supplied to the recidivist; c/ For the third-time violation, the payer shall have to perpetually suspend the right to draw checks of the recidivist, withdraw all blank checks already supplied to the recidivist, and at the same time notify the name, address, identity card number (or equivalent papers prescribed by law) and the sum of money in the check beyond the solvency of such person to the State Bank. 4. The State Bank shall have to archive information on names, addresses, identity card numbers (or equivalent papers prescribed by law), sums of money in checks beyond the solvency of the third-time violators and supply such archived information at requests of the check-supplying organizations. 5. The check-supplying organizations, when supplying checks, shall have to verify information on persons to be supplied with checks archived at the State Bank, and refuse to supply checks to persons banned from using checks or with the right to draw checks perpetually suspended. The check-supplying organizations which violate these provisions shall have to pay damage compensations to the concerned parties. 6. Recidivists in drawing checks beyond their solvency who, when being requested by the check-supplying organizations to return blank checks already supplied to them, fail to return and continue using such checks, shall be considered intentionally using after having their right to draw checks suspended. The payment service-providing organizations may blockade accounts of violators and notify such to the functional agencies to apply measures to withdraw such blank checks. Article 48.- Handling of violations 1. Organizations and individuals that violate the provisions of this Decree shall, depending on the nature and seriousness of their violations, be administrative sanctioned, have their right to draw checks temporarily or perpetually suspended, have to make damage compensations or be examined for penal liability according to provisions of law. 2. The payment service-providing organizations which violate the provisions of this Decree shall, depending on the nature and seriousness of their violations, have to pay damage compensations, be administratively sanctioned or banned from supplying checks according to provisions of law. Chapter X IMPLEMENTATION PROVISIONS Article 49.- Implementation effect 1. This Decree takes effect as from April 1, 2004. 2. The Government's Decree No. 30/CP of May 9, 1996 promulgating the Regulation on issuance and use of checks and Decree No. 173/1999/ND-CP of December 7, 1999 amending Article 5 of Decree No. 30/CP promulgating the Regulation on issuance and use of checks shall cease to be effective as from April 1, 2004. Article 50.- Guiding responsibility and implementation responsibility 1. The State Bank of Vietnam shall have to guide the implementation of this Decree. 2. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, and the presidents of the People's Committees of the provinces and centrally-run cities shall have to implement this Decree. On behalf of the Government Prime Minister PHAN VAN KHAI