Convention Between Participants in the National Telecompensation System for Checks, Commercial Instruments, and Bills

[BCRG Logo]

Conakry, April 30, 2020

CONVENTION BETWEEN PARTICIPANTS IN THE NATIONAL TELECOMPENSATION SYSTEM FOR CHECKS, COMMERCIAL INSTRUMENTS, AND BILLS

Between

1. The Central Bank of the Republic of Guinea, acting as system administrator, hereinafter referred to as "the BCRG", located at Conakry, 6th Boulevard du Commerce, P.O. Box: 692 – Conakry, represented for the purposes hereof by Dr. Louncény NABE, Governor;

And

On the one hand

2. The participants in the national telecompensation system, hereinafter referred to, whose list is attached as an Annex.

On the other hand

Whereas, Law No. L/2017/017/AN of June 8, 2017, repealing Law No. L/2016/064/AN of November 9, 2016, itself amending Law No. L/2014/016/AN of July 2, 2014 establishing the statute of the Central Bank of the Republic of Guinea;

Whereas, Law No. L/2013/060/CNT of August 12, 2013 on banking regulation in the Republic of Guinea;

Whereas, Law No. L/2013/D60/AN of August 12, 2013 on the regulation of credit institutions in the Republic of Guinea;

Whereas, the Civil Code of the Republic of Guinea;

Whereas, the Code of Economic Activities of the Republic of Guinea;

Whereas, Instruction No. 116/DGAEM/DPMC/2001 of May 8, 2001 on repurchase operations;

Whereas, Decree No. D/2010/PRG/SGG of December 27, 2010 on the appointment of the Governor of the Central Bank

It has been agreed as follows:

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I- GENERAL PROVISIONS.

Article 1: This convention aims to define and establish the principles governing the electronic exchange of data and standardized check images, as well as the responsibilities of participants in the National Telecompensation System managed by the BCRG as administrator of the telecompensation center.

Article 2: Electronic check compensation consists of the exchange of data and scanned images between participants in the compensation system approved by the BCRG.

The exchange of data and images related to check value is carried out in accordance with the procedures defined in the technical specifications of the national telecompensation system approved by the participants.

The exchange of images and data covers all checks unless otherwise stipulated in an agreement between the participating institutions.

Article 3: Electronic compensation of checks/instruments covers checks/instruments denominated in Guinean francs drawn on accounts held in Guinean francs.

Article 4: Each participant in the national telecompensation system signing this convention grants a mandate, when acting as the drawn institution, to any other participating institution acting as the presenting institution, for the purpose of carrying out on its behalf and for its account, the procedure for issuing and delivering documents related to check rejection and fund reconstitution intended for the beneficiary, namely:

• the rejection slip (papillon), for rejection reasons related to formal conditions;
• the non-payment certificate, for rejection reasons related to funds or opposition to payment.

However, this mandate does not exempt the drawn institution from continuing to notify check payment incidents to other recipients, in accordance with applicable legislation and regulations.

Article 5: This convention creates the following obligations between institutions: a) For the presenting institution

• carry out the apparent physical verification of checks deposited by clients. The presenting institution must refuse presentation for payment any check: i. unsigned; ii. lacking the issue date; iii. expired/stale-dated; iv. unendorsed; v. or any other reason related to mandatory formal conditions for check payment;
• ensure the conformity of information on the check with that in the computer record,
• retain settled check forms for a period of ten (10) years;
• perform scanning of all checks regardless of amount; in this case, the scanner imprint on the back of the check must include the date as well as the code of the presenting institution and the agency code in accordance with BCRG codification.

In case of technical impossibility, a wet stamp bearing the same information must be affixed to the back of the check.

b) For the drawn institution

• verify the conformity of the amount on the check image with that in the computer record;
• verify signature conformity;
• respect rejection deadlines (D+1);
• implement a duplicate control system;
• have a quality control system for printed and personalized checks before delivery to drawers.

The drawn institution is responsible for complying with the requirements of this Article 5 and may claim reimbursement only in case of technical failure, such as:

• double payment,
• non-conformity between the computer record and the scan (if the amount is higher than in the computer record, the presenting institution makes the reimbursement; if lower, the drawn bank reimburses the difference).

Article 6: Any rejected value whose computer record was not submitted within regulatory deadlines as fixed by BCRG circular is considered paid.

Article 7: Check certification must be evidenced by the affixing on the check of a stamp or imprint other than manual bearing the wording "certified check".

Each institution must ensure that:

• certification is performed on standardized check forms;
• the zones reserved for the account number and the CMC7 track are always readable.

EXCHANGE OF CHECK ORIGINALS

Article 8: In the event of legal action or a court request, the presenting institution is required to deliver the check original to the drawn institution in accordance with the following procedure:

• delivery of check originals is based on a letter from the drawn institution, sent by official mail for a period not exceeding the regulatory deadline; the duly signed letter by an authorized person must notably include the following details: o check number; o amount; o drawer identity; o telecompensation date; and o the drawer's RIB/RIP.
• delivery of check originals to the drawn institution is made against a receipt affixed to each copy of the check, within a period not exceeding ten (10) business days in banks following the date of receipt of the aforementioned letter.

The presenting institution is obligated to deliver the physical check original to the drawn institution within fifteen (15) business days after receipt of the request.

Article 9: In case of rejection due to opposition and upon receipt of the computer record regarding this rejection, the presenting institution must send by official mail the original check in question to the drawn institution's agency to take necessary measures.

PRESENTATION OF VALUES

A- CHECK PRESENTED FOR THE FIRST TIME

Article 10: The category includes computer records and potentially images related to checks presented for the first time.

B- CHECK PRESENTED FOR PAYMENT

Article 11: The presenting institution must ensure that checks presented for payment have been previously rejected by the drawn institutions.

This check presentation operation is initiated by the presenting institution based on the rejection slip and the check delivered by the beneficiary.

Article 12: The presenting institution is required to verify the beneficiary's identity and must ensure that formal defects noted on the rejection slip have been resolved by the drawer.

REJECTION PROCESSING

Article 13: In case of rejection, the presenting institution is required to note on the rejection slip and, on the rejection statement, the reason and date of rejection as well as the nature of the document confirming non-payment (rejection slip). No remarks must appear on the check itself.

Article 14: The presenting institution is required to issue rejection slips intended for beneficiaries, upon receipt of the computer records related to these documents.

To be delivered to the beneficiary, these documents must bear the authorized stamp and signature of the presenting institution as well as the wording "on behalf of the drawn institution".

Article 15: The rejection slip must be sent to the beneficiary, accompanied by the check, on the day the beneficiary's institution receives the computer record regarding the rejection presented by the drawn institution and at the latest, the next business day in banks.

Article 16: In case of a technical failure making teletransmission of a rejection slip impossible, the drawn institution must resort to the BCRG backup station to process the file of these payment incidents.

If unable to process via this backup method, the drawn institution must notify the presenting institution by mail, fax, telex, or any other means constituting proof, to suspend payment of the concerned checks.

The notification must be made within the electronic rejection deadline and at the latest on the first business day in banks following the date of receipt of the computer record regarding the check (D + 1) before counter opening. Concurrently, the drawn institution must communicate the identifiers of the concerned checks to allow the presenting institution to transmit a photocopy to process the rejection at the manual compensation chamber (D or D+1) or according to the procedure fixed by the BCRG in case of elimination of this chamber.

PROCEDURE FOR RECOVERY OF VALUES NOT EXCHANGED BY TELECOMPENSATION

Article 17: The exchange of values that cannot be processed by telecompensation (non-standardized checks, checks with incorrect RIB/RIP, checks bearing an anomaly in the CMC7 line when this line cannot be corrected from clear zones, etc.) is handled at the Conakry compensation chamber or according to the procedure fixed by the BCRG in case of elimination of this chamber.

ARBITRATION COMMITTEE.

Article 18: All disputes arising from this convention, particularly regarding its interpretation and execution, shall be resolved amicably.

Failing consensus, the parties agree to resort to ad hoc arbitration in accordance with the OHADA Uniform Act on Arbitration Law.

Appointed and substitute arbitrators must be recognized legal or technical experts at the national and/or international level, with a minimum of 10 years' experience on the dispute subject.

French shall be used as the arbitration language and the arbitral award shall be final, enforceable, without appeal, and binding on the parties.

Nevertheless, this decision acquires res judicata authority only after an exequatur is granted by the competent Judge of the Guinean Tribunal.

Article 19: This Convention enters into force between the participants who have signed it.

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Annex 3: List of Participants

No.	Participant	Name and Surname	Signature	Date
1	BCRG		[Signature]	23/11/020
2	BICIGUI	Denlo RUBRICE	[Signature]	07/04/21
3	SGG	Cherif DRAMÉ	[Signature]	07.04.2021
4	BIG	Sidy Thiam	[Signature]	23/03/2021
5	ORABANK	GBE-AKUE Kpakpri	[Signature]	8 Avr 21
6	BPMG	KOUREUMA Ibrahima	[Signature]	07/04/2021
7	FBBNANK	Olajide Ayeronwi	[Signature]	08/04/2021
8	ECOBANK	Diowadou Bah	[Signature]	08/04/21
9	VISTABANK	Massin Bayo	[Signature]	07/04/2021
10	SKYE BANK	Gbedegade Jull	[Signature]	7/4/2021
11	BSIC	DIALLO Mamadou Pathe	[Signature]	07/04/2021
12	UBA	Odeyemi Tony	[Signature]	8/4/2021
13	NSIA	Dieng Christelle	[Signature]	7/4/21
14	BCI	Lidy Mohamed CHERIF	[Signature]	23/03/2021
15	AFRILAND	FONDJO GUY LAURENT	[Signature]	13/04/21
16	BNG	Mohamed Lamine Thiam	[Signature]	07/04/2021
17	BDG	Fatoumata Touré	[Signature]	7/4/2021
18	BNIG	Alpha Mohamed Keita	[Signature]	07/04/21