53.
53.
For daily clearance and settlement of negotiable instruments, Participant Entities shall
immediately replenish sufficient funds for payment upon receiving an advance notification
of their balance payable; check clearing institutions shall, at the designated time, deduct
the balance payable from the non-interest-bearing reserve account of the Participant Entity
and transfer the funds into its settlement account opened at the Bank.
The “Designated Time” as referred to in the preceding paragraph shall be coordinated and
determined by and between the check clearing institution and the Participant Entity, and
reported to the Bank for record.
Check clearing institutions shall monitor whether any Participant Entity fails to replenish
sufficient funds for balance payable, promptly remind and urge such Participant Entity to
replenish funds, and keep track of whether the Participant Entity has funds to be
transferred in.
Check clearing institutions shall not post the balance receivable of a Participant Entity to
its non-interest-bearing reserve account until having completed the deduction and transfer
procedures in accordance with Paragraph 1 hereof.
If a Participant Entity is unable to pay the balance payable in whole or in part, check
clearing institutions shall complete the day’s settlement operation in accordance with
Article 18 of the “Regulations Governing the Business of Negotiable Instruments Exchange
and Clearance of Accounts among Banks.”
