Regulatory Alerts2010-04-18
Instructions Concerning Post-Dated Cheques
Issued by the Central Bank Governor on November 10, 2003, these instructions require banks to base finance extension decisions on independent credit studies rather than treating post-dated cheques as guarantee or credit instruments. Banks must cease granting finance against customer-issued post-dated cheques, whether utilized as collateral or documentary evidence, and execute contracts according to sound banking practices. When additional debt documentation is necessary, institutions may employ pronotes while legally preserving customer rights derived from primary finance agreements.
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