CICS OM 17-015

Updated: Dec 4, 2020

16 May 2017


Memo To : All Member/Participant Banks

Subject : STORAGE GUIDELINES FOR NEGOTIATED/PAID ORIGINAL CHECKS


1. Pursuant to Section 12 of the Amended Check Image clearing System Rules and Regulations (CICS RR), and as a matter of policy, all Member/Participant Banks are REQUIRED to keep the Original Checks that are already paid/negotiated at a Central Storage Facility authorized and designated by PCHC.


2. In this regard, we are pleased to announce the designation of LANE ARCHIVE TECHNOLOGIES (LAT) as the Central Storage Provider for all paid/negotiated Checks.


3. The designation of a single storage company emanated from the need to provide participating member banks a securely managed document archiving facility that is relatively available throughout the country (Luzon, Visayas and Mindanao). the expertise of LAT in document management will also ensure performance of unified process in retrieving original checks when such need arises.


4. Pursuant thereto, we circulate the Operating Guidelines to be observed in keeping/storing paid/honored Checks by all participants, including the retrieval process if circumstance so require.


4.1. Each Member/Participant Bank shall negotiate directly and execute individual Service Level Agreement (SLA) with the PCHC designated Storage Provider (SP).


4.2. Participating Banks shall deliver paid/honored Checks to the designated Storage Provider's storage facility at the place, and at the time and frequency (minimum of one delivery per month) to be agreed between the parties.


4.3. Original paid/honored Checks must be placed in the prescribed standard double sided/walled box with dimension either 16" x 125" x 13" (for big volume banks) or 8.5" x 12.5" x 3.5" (for small volume banks). Content of the larger box should not exceed 20 kgs in weight.


4.4. Unless the member bank has its own Document Management Solution that creates unique labeling that easily identify items submitted for storage, outward items processed in a particular day must be bundled/wrapped and labelled with the following details:

4.4.1. BRSTN of the Presenting Bank

4.4.2. Transaction Date

4.5. Bundles should be placed inside the prescribed standard box and labelled externally with the following information:

4.5.1. BRSTN of the Presenting Bank

4.5.2. Date the box is sealed and ready for transport to the warehouse

4.5.3. Box number written on both sides, in case of multiple boxes turned over to the Storage Provider

4.6. For easy tracking, the Branch should create an inventory list using the information indicated on the label of each box, e.g.

4.6.1. Box Label = BRSTN + date sealed + box number

Example: Box 1: 01004-001-8 + 11/11/2016 + 001 = 11/02/2016, 11/03/2016, 11/04/2016

Box 2: 01004-001-8 + 11/18/2016 + 002 = 11/15/2016, 11/16/2016, 11/17/2016


* For more systematic and faster retrieval/search, banks may employ Document Management Solution that can provide details of item content in the box.


4.7. If a box is ready for storage, the Presenting Bank/Branch shall seal it and attached the

barcode sticker secured from the Storage Provider beforehand. An accomplished e-Service Request Form (template to be prescribed by the Storage Provider) shall be sent via e-mail for the SP to schedule pick-up or delivery of the box, as agreed between the Presenting Bank and the Storage Provider.


4.8. The minimum compliance is for banks to deliver at least one (1) box to the storage facility per month at a time and date agreed between the parties.


5. Upon receipt of the documents for storage, facility personnel shall scan the barcode sticker attached to the box. The Storage Provider may refuse acceptance if turnover or delivery is not compliant with the specifications/prescribed standards or procedures.


6. The facility personnel for record and tracking purposes shall encode the details of the barcode sticker and box label.


7. Accepted documents for storage will be kept for a period of twelve (12) months, after which the stored documents shall be destroyed when no request for retrieval is received by the storage provider in response to the written Notification of Destruction (which in no case shall be less than thirty (30) days prior to destruction date. The Presenting Bank concerned may send a representative to witness the destruction, if it so requires. Alternately, the Presenting Bank may opt to retrieve their documents in which case should submit a Notice of Retrieval five (5) days before the scheduled destruction.


8. Within the 12-month retention period, a Bank may request for a paid/honored Original Check/s drawn against it (the "Drawee Bank") by sending a formal letter of request to the Presenting Bank/s, copy furnished PCHC, stating the following:

8.1. Purpose or nature of the request

8.2. Date of Presentation or Transaction Date

8.3. Check Number and Account Number

8.4. Drawee Bank/Branch Name

8.5. BRSTN of the Drawee Bank

8.6. Amount

8.7. Presenting Bank/Branch Name and BRSTN


9. Presenting bank shall only entertain requests for retrieval for any of the following reasons, viz:

9.1. Litigation Court Orders

9.2. Fraud Investigation

9.3. Validation of Duplicate Items


10. The requesting Bank's authorized signatory should sign the letter.


11. Standard turnaround time.


11.1. If the parties belong to the same region, the Presenting Bank is given five (5) working

days to respond and inform the requesting bank/s cc: PCHC, on the status of the request. PCHC shall not entertain any query or complaint regarding request for paid/honored Original Check/s if it is not furnished any prior communication regarding the request.


11.2. Within five (5) working days from its receipt of the request of the Drawee Bank, the Presenting Bank shall submit a written Notice of Retrieval to the Storage Provider. From date of its receipt or retrieval of the requested item/s, the Presenting Bank has another five (5) days to make available the retrieved item/s to the requesting Drawee Bank.


11.3. If either of the Parties belongs to a different region (provincial/GMA), the Presenting bank has additional five (5) working days (a total of 10 working days) to make available the retrieved items/s to the requesting Drawee Bank.


12. The requesting Drawee Bank shall arrange for pick-up of the retrieved item/s from the Presenting Bank. Any pick-up to be made by the Drawee Bank shall be supported with authority to retrieve from the Presenting Bank/Branch concerned.


13. Once the requesting Drawee Bank obtains possession of the retrieved item/s, it shall automatically become the custodian of the said item/s. Hence, it shall formally inform the Presenting Bank and PCHC of its receipt of the retrieved item/s.


14. It is the responsibility of the Presenting Bank to strictly observe the foregoing policy and procedures. In case of lapses or violation (i.e. did not keep/store the Check in the Central Storage), the Presenting Bank shall be liable for the entire value of the Check if the requesting Drawee Bank loses in a dispute/court case mainly due to its failure to produce/show the relevant Original Check within the required retention period.


15. As only authorized bank personnel are allowed to locate/retrieve items from the SP, banks should also submit to the Storage Provider (cc: PCHC) the names of their authorized representatives/ signatories for Metro Manila/Luzon, Cebu and Davao as well as designated signatory to the SLA.


16. Should you need further details or more information, please do not hesitate to call our Help Desk at 523-0315 (look for Frederick Garcia or Hector Lasaleta) or 886-1344 to 47 (look for Anthony Manongas). Alternatively, any concern may be e-mailed at PHILCLEAR@pchc.com.ph.


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