Payment Order by Check

Details

The check as a means of payment is legally payable upon appearance at the Paying Bank even on the day of issue. The deadline for appearance is eight (8) days from the day following the date of issue and must be paid to its legal bearer and place of issue. In practice, it is common to issue a postdated check, which substantially extends its shelf life and also postpones the start of the limitation period.

When the check that appeared on time at the Bank to be paid is not paid, because there are no funds available from the issuer, it is an unsecured check. The bearer of the security can in this case request the issuance of a payment order (CofCP 623-634), which is the simplest, fastest and most economical procedure, since within a few days it provides the bearer of the security with an enforceable title, bypassing any hearing procedure before the Court. Other ways of claiming the debt by check are through a lawsuit during the special procedure for settling disputes from credit securities (CofCP 635-646) and through a lawsuit during the regular procedure, which are recommended only in case it is not possible to issue a payment order because it is less immediate and fast.

The application for a payment order against the issuer and other endorsers of the check must be submitted within an exclusive period of six (6) months from the expiration of the deadline for the appearance of the check. Whereas, the lawsuit against the issuer for compensation in accordance with the provisions on torts against the issuer and other endorsers of the check, is statute-barred after five (5) years from the date of sealing the check. The lawsuit against the issuer and other endorsers of the check based on the provisions on unjust enrichment expires after five (5) years from the date of issue of the check. Finally, the complaint for the offense of the false check is submitted within an exclusive period of three (3) months from the expiration of 8 days from the appearance of the check.