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    OG-07-016 USB Amended Guidelines On 2nd-End. Chks 10.31.06

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    romeldevera
    The document outlines guidelines for UCPB Savings Bank's acceptance of second-endorsed checks. It defines second-endorsed checks and provides eligibility requirements. Checks must be endorsed by the payee and deposited to another account. Acceptance is limited to checks payable to individual payees or sole proprietorships. Various approval levels are required depending on the check amount. The depositor must meet account requirements and the transaction must be for normal business purposes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    OG-07-016 USB Amended Guidelines On 2nd-End. Chks 10.31.06

    Uploaded by

    romeldevera
    2K views6 pages
    The document outlines guidelines for UCPB Savings Bank's acceptance of second-endorsed checks. It defines second-endorsed checks and provides eligibility requirements. Checks must be endorsed by the payee and deposited to another account. Acceptance is limited to checks payable to individual payees or sole proprietorships. Various approval levels are required depending on the check amount. The depositor must meet account requirements and the transaction must be for normal business purposes.

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    OG-07-016 USB Amended Guidelines on 2nd-End. Chks 10.31.06

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    © Attribution Non-Commercial (BY-NC)

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    The document outlines guidelines for UCPB Savings Bank's acceptance of second-endorsed checks. It defines second-endorsed checks and provides eligibility requirements. Checks must be endorsed by the payee and deposited to another account. Acceptance is limited to checks payable to individual payees or sole proprietorships. Various approval levels are required depending on the check amount. The depositor must meet account requirements and the transaction must be for normal business purposes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views6 pages

    OG-07-016 USB Amended Guidelines On 2nd-End. Chks 10.31.06

    Uploaded by

    romeldevera
    The document outlines guidelines for UCPB Savings Bank's acceptance of second-endorsed checks. It defines second-endorsed checks and provides eligibility requirements. Checks must be endorsed by the payee and deposited to another account. Acceptance is limited to checks payable to individual payees or sole proprietorships. Various approval levels are required depending on the check amount. The depositor must meet account requirements and the transaction must be for normal business purposes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 6

    UCPB SAVINGS BANK, INC.

    AMENDED GUIDELINES ON ACCEPTANCE OF SECOND-ENDORSED


    CHECKS

    I. OVERVIEW

    As a general rule, the Bank shall only accept checks which are payable to depositors
    for deposit to their respective accounts. Occasionally, some depositors present
    checks payable to other payees which they would like to deposit to their accounts.
    In such cases, our associates must be aware that acceptance of such checks involves
    risks pertaining particularly to the validity of endorsements.

    A Second-endorsed Check shall be defined as a check endorsed by a payee to be


    deposited to an account other than the payee’s account.

    These guidelines shall also apply to borrowing accounts with regular Domestic Bills
    Purchased Lines wherein second-endorsed checks are allowed as eligible items for
    purchase.

    II. DEFINITIONS

    1. Second-endorsed Non-Crossed Check – refers to a check without any


    two parallel lines on the upper left corner of the face of the check being
    deposited to an account other than the payee.

    2. Second-endorsed Ordinary Crossed Check – refers to a second-endorsed


    check
     with two parallel lines on the upper left corner on the face of the
    check
     without the stamp “For Payee’s Account Only” or “For Deposit to
    Payee’s Account Only”.

    3. Second-endorsed Check with Restriction – refers to a second-endorsed


    check
     with two parallel lines on the upper left corner on the face of the
    check
     with the stamp “For Payee’s Account Only” or “For Deposit to Payee’s
    Account Only’.

    III. GUIDELINES

    A. BSP GENERAL GUIDELINE

    Banks should limit the acceptance of second-endorsed checks from properly


    identified clients and only after establishing the nature of the business of said
    clients justifies, or at least, makes practical the deposit of second-endorsed
    checks. In case of isolated transactions involving deposit of second-endorsed
    checks by clients who are not engaged in trade of business, the identity of the

    UCPB Savings Bank, Inc. 1 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks
    first endorser should be established and the record of the identification shall
    also be kept for five (5) years. It is also understood that banks shall, at all
    times, follow the Know-Your-Customer (KYC) rules whenever they handle or
    transact second-endorsed checks. (Source: BSP Circular 02-07/16)

    B. ELIGIBILITY REQUIREMENTS

    Approval of Deviation
    A. Second-endorsed Non-crossed Check, and
    B. Second-endorsed Ordinary Crossed Check
    1. Acceptance should be limited to checks President
    payable to individual payees only
    including
    sole proprietorship business.
    2. Approval of the acceptance of second- None
    endorsed check shall be based on the
    face value per check as follows:
    Up to P30,000 – Branch Head
    Up to P50,000 – Mktg. Area Head
    Up to P100,000 – Mktg. Division Head
    Above P100,000 – President
    3. Endorsement of payee and depositor President
    shall
    be required. The account number of the
    depositor must be indicated at the back
    of
    the check.
    4. A Letter of Request and Undertaking President
    (LRU) shall be executed by the depositor
    in
    two (2) copies (signing of the depositor
    should be witnessed by the BH and MA).
    5. The depositor’s six (6) months CASA ADB Marketing Area Head
    should be at least P100,000
    note : CASA shall refer to all accounts of
    the depositor under his name including
    joint accounts. For Corporations, account
    of the company shall only be considered.
    6. The depositor should be a client of the Marketing Area Head
    branch for a minimum of one (1) year.
    7. Acceptance of second-endorsed checks None
    shall be subject to the approved
    accreditation by the Marketing Area Head
    subject to the negative list.
    Negative List as follows:
    a. Unregistered lending investor
    b. Business engaged in unlicensed
    gambling and other illegal
    activities
    c. Underlying transaction is not
    within the normal course of

    UCPB Savings Bank, Inc. 2 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks
    business of the depositor
    d. Checks payable to government
    agencies , instrumentalities or
    institutions shall not be accepted
    as second-endorsed
    e. Client/Depositor reported by the
    Bank to AMLA under the
    Suspicious Transaction Report (STR)
    C. Second-endorsed Crossed Check with Restriction
    (Checks with stamp “For Payee’s Account Only” or “For
    Deposit to Payee’s Account Only”)
    1. Acceptance should be limited to checks President
    payable to individual payees only including
    sole proprietorship business
    2. Allow acceptance of crossed checks with President
    stamp “For Payee’s Account Only” or “For
    Deposit to Payee’s Account Only” subject to
    the following:
    a. Government Issued Checks
    b. Non-Government Issued Checks, None
    provided:
    b.1. Payee is an existing depositor
    of
    the Bank, or
    b.2. Payee is properly identified by
    presentation of acceptable IDs
    note : For acceptable IDs refer to
    policy on opening of accounts
    3. Approval of the acceptance of second- None
    endorsed check shall be based on the face
    value per check as follows:
    a. Government Issued Checks
    Up to P30,000 - Branch Head
    Up to P50,000 - Mktg. Area
    Head
    Up to P100,000 - Mktg. Division
    Head
    Above P100,00 - President
    b. Non-Government Issued Checks,
    provided:
    Up to P30,000 - Branch
    Head
    Up to P50,000 - Mktg. Area
    Head
    Up to P100,000 - Mktg.
    Division Head
    Above P100,000 – President
    4. Endorsement of payee and depositor shall President
    be required. The account number of the
    depositor must be indicated at the back of
    the check.
    5. A Letter of Request and Undertaking President
    (LRU) shall be executed by the depositor in

    UCPB Savings Bank, Inc. 3 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks
    two (2) copies (signing of the depositor
    should be witnessed by the BH and MA).
    6. The depositor’s six (6) months CASA ADB Marketing Area Head
    should be at least P100,000
    note: CASA shall refer to all accounts of the
    depositor under his name including joint
    accounts. For Corporations, account of the
    company shall only be considered.
    7. The depositor should be a client of the Marketing Area Head
    branch for a minimum of one (1) year
    8. Acceptance of second-endorsed checks shall None
    be subject to the approved accreditation by
    the Marketing Area Head subject to the
    negative list.
    Negative List as follows:
    a. Unregistered lending investor
    b. Business engaged in unlicensed
    gambling and other illegal activities
    c. Underlying transaction is not within
    the normal course of business of the
    depositor
    d. Checks payable to government
    agencies, instrumentalities or
    institutions shall not be accepted as
    second-endorsed
    e. Client/Depositor reported by the
    Bank to AMLA under the Suspicious
    Transaction Report (STR)

    • Check is traded within the normal course of business between our depositor
    and the payee.

    • Non-eligible second-endorsed checks for acceptance shall include checks


    payable but not limited to the following:
     Partnerships
     Corporations
     Societies
     Firms
     Associations
     Organizations
     Other juridical entities
     Government Agencies, Instrumentalities or Institutions
     Checks denominated in foreign currency

    • Acceptance of second-endorsed checks must be approved by the Branch Head


    who shall signify his/her approval by signing on the DS and LRU.

    B. ACCEPTANCE OF SECOND-ENDORSED CHECKS

    • The Branch Head shall ensure that all eligibility requirements are fully met
    and complied with prior to the approval of the acceptance of second-endorsed
    check/s.

    UCPB Savings Bank, Inc. 4 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks
    In the acceptance of second-endorsed checks, the Branch Head shall ensure
    that the Bank is not being used as intermediary for money laundering or other
    illegal activities.

    • An updated monthly Monitoring and Approval Sheet (MAS) shall be


    maintained.

    • A separate DS covering second-endorsed check/s shall be accomplished by


    the depositor. The DS shall be signed / approved by the BH and reviewed
    and signed by the SCO. DS without the signatures of the BH and SCO shall
    not be processed.
    • Acceptance of second-endorsed checks shall not be subject to service
    charge.
    • Any loss incurred by the Bank due to non-compliance with the foregoing
    guidelines shall be for the account of the erring associate.

    C. RECORD KEEPING

    • For reference and audit purposes, the branch shall maintain a complete,
    updated and orderly compilation of the DS (separate from the regular DS)
    together with the LRU, MAS, and photocopy of the check/s which shall be
    retained ten (10) years from the reference month under the joint custody of
    the SCO and SSA.
    • The MA shall be responsible for:
     photocopying duly approved and validated DS, and second-endorsed
    check/s (front and back portions).
     collation of photocopied DS and second-endorsed check/s.
    • At the end of the day, all documents shall be turned over by the MA to the
    SCO. These shall be kept inside the records vault under the joint custody of
    the SCO and SSA.
    • These documents shall form part of the SCO and SSA’s accountabilities for
    turn over in the event of transfer / change in assignment, resignation,
    retirement or termination.
    • Such records must be sufficient to permit reconstruction of individual
    transactions so as to provide, if necessary, evidence for prosecution of any
    criminal activity.

    III. PROCEDURES

    See Annex 7.

    Annexes:

    LRU-Individual Annex 1
    LRU-Corporation Annex 2
    Accreditation Report format Annex 3
    Deviation Report format Annex 4
    Monthly Monitoring Report Annex 5
    format

    UCPB Savings Bank, Inc. 5 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks
    Monitoring and Approval Sheet Annex 6
    Flowchart Annex 7

    UCPB Savings Bank, Inc. 6 Amended Guidelines on


    the Acceptance
    of Second-
    Endorsed Checks

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