Clearing Procedures

Appendix 28

CLEARING PROCEDURES

(Appendix to Sec. X205)

a. Clearing regulations in general

(1) Time and place of exchanges. The clearing of checks, bills and other demand items herein contemplated shall be conducted in the BSP-designated clearing centers. The hour for making such exchanges shall be at 4:00 P.M. on each business day as well as on all local holidays in the clearing centers and/or at such other times as may be fixed by the BSP.

(2) Settling clerks. The head office of each bank, together with all its branches within the designated clearing areas, shall be considered as a unit and shall be represented by one (1) or more [but not exceeding six(6)] competent clerks / representatives to deliver and receive the items to be exchanged. The facsimile signatures and NBI clearances of these clerks/representatives shall be submitted to the Accounting Department. All settling clerks/representatives shall be issued their respective ID cards which shall be presented for admission in the clearing office or regional units.

(3) Items for clearing. All checks and documents payable on demand and drawn against a bank/branch allowed to clear may be exchanged through clearing centers designated by the BSP. As evidence of the channel through which they were negotiated, all items to be exchanged shall be properly endorsed and guaranteed before being sent to the Clearing Office / Unit and shall bear the name of the bank/branch, institution or entity to which they belong. Likewise, they shall be impressed by the sending bank/branch, institution or entity with a special stamp to the effect that they have been cleared through the clearing facilities of the BSP. The Clearing Office / Unit of the BSP shall in no way be responsible for any flaw or defect in the items or for any irregularity whatsoever in any of their features.

(4) Clearing procedures.

(a) Procedure for regular clearing. Each bank/branch through its representative/s, shall deliver their respective demands in sealed envelopes made out separately against the other banks / branches, institutions or entities allowed to clear: Provided, That Negotiable Orders of Withdrawal shall be contained in an envelope exclusively for the purpose: Provided, further, That the BSP may, at its discretion, verify the contents of sealed envelopes. The total of each demand shall be listed in a certified adding machine tape attached to the sealed envelope. In the acknowledgment of receipt of the demands against the bank / branch, institution or entity he represents, the settling clerk concerned shall prepare and sign a Clearing Office Statement (Clearing Form No. 4) in duplicate for local clearing. The original and duplicate of the statement shall be submitted to the