Regulatory Alerts2010-01-01
Legislative Decree 12/2010 of 8 November Restricting the Use of Checks Amending Legislative Decree 12/95 of 26 December
The Government of Cabo Verde issued Legislative Decree No. 12/2010 to amend the restrictive regime for check usage established by Decree-Legislativo 12/95, aiming to restore trust in checks amid the country's socio-economic evolution and WTO accession. The decree mandates credit institutions to terminate agreements with risky users, increases the minimum guaranteed payment amount to 10,000 escudos, and requires mandatory procedural collaboration and data sharing with judicial authorities and commercial associations. It also criminalizes fraudulent check issuance, extends the cooling-off period for reissuing agreements to two years, and establishes administrative fines and jurisdictional rules to deter misuse and protect honest holders.
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