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Homework # 2 ABASOLO,

Negotiable Instruments


Part I.
Clearing House Rules and Regulation

Exchange (Sections 1 to 28)

Section 1. Purpose
Section 2. Objectives of MICR Clearing
Section 3. Agreement of These Rules
Section 4. Participants
4.1 Classes of Participants
4.2 Voting Rights
Section 5. Withdrawal of Participation
Section 6. Suspension / Exclusion
6.1 Infraction of Clearing Rules and Non-payment of Fees
6.2 Strike or Force Majeure
6.3 Provisions of Bangko Central Directive
Section 7. Clearing Representatives
Section 8. Clearing Days
Section 9. Emergencies
Section 10. Frequency and Time of Deliveries
Section 11. Bank Routing Symbol Transit Number (BRSTN)
Section 12. Trustee Responsibility
Section 13. Bank Records of Clearing Items
Section 14. Photocopy of Clearing Items
Section 15. Retention of Records by PCHC
Section 16. Items Eligible for PCHC Processing
Section 17. Bank Guarantee
Section 18. PCHC Handling Identification
Section 19. Regular Clearing Item Procedure
Section 20. Regular Return Item Procedure
Section 21. Special Return Items Beyond the Reglementary Clearing Period
Section 22. Special Clearing of Checks
Section 23. Limitation for Presentation of Clearing Items
Section 24. Procedure for Discrepancies on Banks Outward Items
Section 25. Procedures and Penalties on Clearing Discrepancies
25.1 General Procedures
25.2 Over-Encoding of Amount
25.3 Under-Encoding of Amount
25.4 Miscleared Regular Items
25.5 Misdirected Returned Items
Section 26. Loss of Clearing Items
Section 27. Penalty Charges on Returned Items
Section 28. Penalty on Rejected Items

Settlement (Sections 29 to 33)

Section 29. Settlement of Clearing Discrepancies and Collection of Penalties

Section 30. Assessment of Clearing Charges
Section 31. Examination of Participant Profile
Section 32. Assessment of Clearing Charges
Section 33. Uniform Charge Policy

Part II.
Arbitration Rules of Procedure (Sections 1 to 15)

Section 1. Filing of Complaint to Arbitration Committee

Section 2. Schedule of Filing Fee
Section 3. Filing of Answers to Complaint
Section 4. Replacement of Arbitrators
Section 5. Submission of Affidavits and Counter Affidavits
Section 6. Resolution if No Amicable Settlement
Section 7. Cross Examination during Hearings
Section 8. Default in Non-appearance in Conference
Section 9. Rendering of Judgment or Summary Judgment
Section 10. Submission of Resolution of the Arbitration Committee
Section 11. Filing for Motion for Reconsideration or for New Trial
Section 12. Execution of Decision of Arbitration Committee
Section 13. Filing of Appeal at the Regional Trial Court
Section 14. Effect of Appeal on status of clearing Account
Section 15. Scope of Arbitration Law