Chapter IV Checks |
| Article 125 |
（Items to be specified on checks）A check shall specify the following particulars and be signed by the drawer:
1. Words expressing it to be a check.
2. A sum certain in money.
3. Business name of the drawee.
4. Personal or business name of the payee.
5. An unconditional order to pay.
6. Place where it is drawn.
7. Date of drawing.
8. Place of payment.
If a check does not specify the payee, it is payable to the holder.
If a check does not specify the place where it is drawn, the place of business, domicile, or residence of the drawer shall be the place where it is drawn.
A check may be drawn payable to the drawer himself or the drawee, and may also be drawn payable by the drawer himself. |
| Article 126 |
（Responsibilities of the issuer）The drawer of a check shall guarantee the payment of the check according to its tenor. |
| Article 127 |
（Payer's qualifications）The drawee of a check shall be limited to the financial institutions specified in Article 4. |
| Article 128 |
（Check payable at sight and post-dated check）A check shall be payable on demand only. If a check contains any statement to the contrary, the statement shall be void.
The holder shall not present for payment before the date of drawing indicated on the check. |
| Article 129 |
（Fund transfer or offsetting）If a check is used to effect a transfer of, or to offset, an account, the transfer or offset is deemed to be a discharge of the check by payment. |
| Article 130 |
（Notification deadline）The holder of a check shall present it for payment within the following time limits, as the case may be:
1. Within 7 days after the date of drawing if the check is payable at the province (city) where it is drawn.
2. Within 15 days after the date of drawing if the check is payable at any province (city) other than where it is drawn.
3. Within 2 months after the date of drawing if the check is drawn abroad and payable in this country. |
| Article 131 |
（Requirements for recourse）If a check presented by the holder for payment within one of the time limits set forth in Article 130 is dishonored, the holder may exercise his right of recourse against any parties prior to him, but he shall apply for and cause a protest to be made on the day of dishonor or within 5 days after the dishonor.
If the drawee inserts on the check or on an allonge a statement of the fact of dishonor and the date of dishonor, accompanied by his signature, the statement has the same force and effect as a protest. |
| Article 132 |
（Reason for the loss of right to recourse）If the holder fails to make presentment for payment within one of the time limits set forth in Article 130, or fails to apply for and cause a protest to be made on the day of dishonor or within 5 days thereafter, he loses his right of recourse against all parties prior to him except the drawer. |
| Article 133 |
（Requests for interest）In exercising his right of recourse against a person liable on the check, the holder is entitled to claim interest on the amount of the check from the day it is presented for payment. If no rate has been agreed upon, interest shall be computed at 6 percent per annum. |
| Article 134 |
（Responsibilities of the issuer after the notification deadline）The drawer shall remain liable to the holder in spite of the expiration of the time limit for presentment. But if the drawer suffers any loss as a result of the holder's failure to make presentment, the holder shall be liable for damages. The amount of the damages may not exceed the face amount of the check. |
| Article 135 |
（Restrictions on withdrawal of payment assignments）The drawer may not countermand his order of payment within any of the time limits set forth in Article 130. |
| Article 136 |
（Payment made after the notification deadline）The drawee may still make payment after the expiration of the prescribed time limit for presentment, but this provision does not apply if any of the following circumstances exists:
1. The drawer has countermanded his order of payment.
2. One year has passed since the date of drawing. |
| Article 137 |
（Partial payment）If the drawer's funds on deposit or the sum of money agreed to be advanced to the drawer under a credit agreement are insufficient to cover the amount of the check drawn, the drawee may pay a part of the amount.
When a situation like the one referred to in the preceding paragraph occurs, the holder shall indicate on the check the actual amount he receives. |
| Article 138 |
（Certified check）A drawee who writes on a check the wording "certified" or "payment guaranteed" or any other wording of equivalent meaning shall assume the same liability for payment as the acceptor of a bill of exchange.
If the drawee has written on a check wording referred to in the preceding paragraph, the drawer and all endorsers are discharged from their liabilities.
The drawee may not guarantee payment beyond the funds available on deposit or the sum of money agreed under a credit agreement, and shall be punished by an administrative fine for any violation of this provision. But the amount of the fine may not exceed the amount of the check.
If the payment of a check has been guaranteed by the drawee in accordance with paragraph 1, the provisions of Articles 18, 130, and 136 shall not apply. |
| Article 139 |
（Check with parallel lines）A check with two parallel lines across its face is payable only to or through a financial institution for the sum of money represented.
A check is payable to or through a particular financial institution for the sum of money represented if the particular financial institution is specifically designated between the parallel lines across the check. But if the particular financial institution itself is the holder of the check, it may endorse the check to, and authorize another financial institution, as endorsee, to collect payment.
If the holder of a crossed check is not a financial institution, he shall deposit the check in his account with a financial institution and authorize the financial institution to collect payment.
A crossed check with a designation of a particular financial institution shall be deposited in the account with the particular financial institution and authorize the financial institution to collect payment.
The drawer of a crossed check may write between the parallel lines the wording "pay in cash" or any other wording of equivalent meaning, and sign or affix his seal beside it. If a crossed check contains such wording, the parallel lines across the check are deemed to be cancelled unless the check has been negotiated by endorsement. |
| Article 140 |
（Payer’s compensation responsibilities）The payer shall be liable for any damage arising from a payment in violation of the provisions of Article 139, but the amount of damages may not exceed the amount of the check. |
| Article 141 |
（Penalties for blank checks）(Deleted) |
| Article 142 |
（Inapplicability of regulations on consecutive violations）(Deleted) |
| Article 143 |
（Payer’s payment responsibilities）The drawee shall be liable to pay the amount of the check if the drawer's funds on deposit or the sum of money agreed under a credit agreement are sufficient to meet the amount of the check drawn. But this provision shall not apply if the drawee receives prior notice that the drawer has been adjudicated bankrupt. |
| Article 144 |
（Regulations on bills of exchange applying mutatis mutandis to items herein）The provisions pertinent to the drawer in Chapter II, Section 1, Article 25, paragraph 2; those pertinent to endorsement in Chapter II, Section 2, except Article 35; those pertinent to payment in Chapter II, Section 7, except Article 69, paragraphs 1 and 2 and Articles 70, 72, and 76; those pertinent to right of recourse in Chapter II, Section 9, except Article 85, paragraph 2, subparagraphs 1 and 2, Articles 87 and 88, Article 97, paragraph 1, subparagraph 2 and paragraph 2, and Article 101; those pertinent to protest in Chapter II, Section 10, except Article 108, paragraph 2 and Articles 109 and 110, shall apply mutatis mutandis to a check. |