Circular No. 03/2001 - Clearing Service Regulations Return Reasons Description

CIRCULAR NO. 03/OTJ/2001 DEPARTMENT OF OPERATIONS, TREASURY AND LEGAL AFFAIRS SUBJECT: Clearing Service Regulations - Return Reasons - Description

The Board of Directors of the Bank of Mozambique, within the scope of the competencies conferred upon it by Article 46 of Law 1/92 of January 3 - Organic Law of the Bank, met in session on May 31, 2001.

APPROVES

The description, attached as an annex, of the return reasons for documents, provided for in paragraph 6 of Article 13 of Notice No. 4/GGBM/2001 of the "Clearing Service Regulations".

This Circular enters into force on July 2, 2001.

Any doubts arising from the interpretation and application of this Circular should be submitted to the Operations and Treasury Department of the Bank of Mozambique.

Maputo, June 1, 2001

Firmino Santos Administrator

Annex to Circular No. 3/2001

REASON DESCRIPTION NO. LITERAL 11 Insufficient Funds 12 Account Closed 13 Account Frozen Account blocked or suspended by judicial decision, decision of the Bank of Mozambique, the account-holding bank, or by written order of the holder. 14 Written order from the issuer duly justified Includes, among other situations, theft, robbery, loss, and opposition to payment. Characterized by the presentation of proof justifying the counter-order. 15 Discrepancy and/or insufficiency in the issuer's signature 16 Improper Clearing - Presentation outside the deadline; - Cancellation of the passbook by the drawee bank; - Check presented to a bank other than the drawee; - Check previously returned for reasons 12, 13, 14, 15, and 18; - Forged check; - Issued without prior control or responsibility of the Bank; - Irregular endorsement; - Formal filling error, including incorrectly indicated amount and discrepancy between written and numerical figures. 17 Absence or irregularity in the clearing stamp 18 More than six months have elapsed since the presentation deadline for payment 51 Payment Order – beneficiary is not a customer 52 Payment Order – the indicated account number and/or beneficiary customer name do not match 80 Failure to deliver the check 81 Logical file not processed or partially processed 82 CEL – Inconsistent record 83 Duplicate record