Updated: Dec 18, 2020
26 May 2006
TO : All Clearing Banks/Institutions
R E : AMENDMENT OF CHOM NO. 279 RE: “PING-PONG” CHECKS
1. To ensure finality of remedies and obviate conflicts in the interpretation of CHOM No. 279 (06 September 1996) vis-
à-vis the Arbitration Rules of Procedure, Item 4 of the CHOM is hereby amended to read as follows:
4. If the arbitration mechanism is not availed of by any of the disputants within six (6) months from date of split
pursuant to paragraph 2.2 above, the 50/50 settlement shall be deemed acceptable and final to both parties.
2. For handy reference, the provision as worded in said CHOM No. 279 is quoted hereunder:
“4. If the arbitration mechanism is not availed of by the aggrieved party as called for under 2.2 above, it is
understood that the “50-50 split” is acceptable to both, unless the contending parties decide otherwise and
mutually seek other avenues for the final settlement of the controversy.”
3. Please be guided accordingly.