CICS OM 21-037

July 9, 2021


T O : All Clearing Participant Banks/Institutions


R E : REVISED RULES OF SETTLEMENT IN A MULTIPLE PRESENTMENTS CLAIM OF A DRAWEE BANK

1. A Drawee Bank may file a written Report on Multiple Presentments of a Check drawn against it (“Subject Check”)

together with a request for settlement of its Multiple Presentments Claim. Please see attached Annex “A” for the

format of the Report and the Claim.


2. Upon receipt of a Multiple Presentments Claim, PCHC shall require each of the Presenting Banks (Digital or Non-

Digital) mentioned in the Multiple Presentments Claim (the “Respondent Banks”) to submit the following:


2.1. the cleared Physical Original Check (the “POC”) covered by the deposit transaction processed by the

Presenting Bank, as mentioned in the Multiple Presentments Claim; and


2.2. the front and back image of the POC;

2.3. comments of the Presenting Bank (the “Comments”) on the statements of the Drawee Bank (the “Drawee’s

Statements”) in its Multiple Presentments Claim regarding the deposit transaction processed by the

Presenting Bank.


3. PCHC’s requirement shall be conveyed to the Respondent Banks through electronic mail (PCHC Mail). The

Respondent Banks shall submit to PCHC the requirements under Section 2 above within 15 business days from

receipt of the PCHC Mail addressed to them/it.


4. Non-submission of the POC within the 15-business day period is considered an admission of Respondent Bank that

it does not have the POC and non-submission of its Comments is held as an implied admission by Respondent

Bank of the truth and accuracy of Drawee’s Statements. Any admission of Respondent Bank under this provision

shall not constitute an admission by it for any other purpose nor may the same be used against it in any other

proceeding.


5. After the expiration of the 15-business day submission period, PCHC shall evaluate the submissions of the

Respondent Banks and, at its option, conduct further inquiry with the Respondent Banks.


6. In deciding on the Multiple Presentments Claim of Drawee Bank, PCHC shall go by the following guidelines:


6.1. the Respondent Bank which submits the POC shall not be answerable to the Drawee Bank on the Multiple

Presentments Claim, provided that the POC is genuine (or not a Counterfeit/Duplicate), subject to the

liabilities of a Presenting Bank for presenting a clearing item with Alterations or Technical Defects, and to

the provisions of the last paragraph of Section 6.2 below.


6.2. Any Respondent Bank which-


6.2.1. cannot or does not submit to PCHC the POC (genuine) specified in Section 6.1 above, or


6.2.2. is deemed to have admitted non-possession of the POC (as provided in Section 4 above);


shall reimburse the Drawee Bank the amount received by it (Respondent Bank) on its clearing item mentioned in

the Multiple Presentments Claim, as confirmed by PCHC, except if the corresponding POC presented to PCHC

appears to indicate or shows erasures/alterations that are indicative of an earlier deposit of the clearing item with

said Respondent Bank, in which case PCHC shall conduct further investigation of the facts on said deposits to

determine the liabilities of the Respondent Banks to each other.


7. Reimbursement or credit to the Drawee Bank of the amount it paid on Subject Check shall be implemented by way

of the usual charge slip on the basis of PCHC’s confirmation, as provided in Section 6.2 above.


8. If the Multiple Presentments Claim of the Drawee Bank is not filed with or not settled through PCHC, the procedure

in this CICS OM shall not apply.


9. In the event any Check covered by a Multiple Presentments Claim –


9.1. gets deposited again, within 180 days from its date but after settlement of the Multiple Presentments

Claim in accordance with this CICS OM, or


9.2. is discovered or claimed to be a Counterfeit after settlement of the Multiple Presentments Claim as

provided in this CICS OM,


the Drawee Bank shall not be entitled to file a Multiple Presentments Claim with PCHC on that Check.


10. In all claims filed with PCHC, penalty shall be imposed on any Presenting Bank which cannot present the cleared

POC covered by the claims or the front and back image of the check it presented. The penalty shall be in the

amount of Php1,000.00 per item payable to PCHC for violation of Section 12 of the CICS Rules and Regulations.


11. Considering the importance of the examination of the POC, we strongly suggest to the clearing participant banks

to remind/encourage their clients to check their Statement of Account (SOA) as soon as received.


12. The handling of a Check dishonored and returned by a Drawee Bank for having been presented more than once by

the Presenting Bank for clearing is clearly and sufficiently covered by Section 1.1.2.6.2 of CICS OM No. 18-027 dated

December 14, 2018.


13. This Operating Memo amends Section 4 (Settlement Guidelines) of CICS Operating Memo No. 20-033 dated July 8,

2020.


14. For guidance and strict compliance.


CICS OM No.21-036.Implementation of the New Check Design Standards
.pdf
Download PDF • 464KB
CICS OM No.21-037.Annex A.Report on Multiple Presentments
.pdf
Download PDF • 293KB