Consequences of Issuing a Dishonored Cheque What is Issuing a Dishonored Cheque

The law provides for administrative penalties for bad check violations. Anyone who issues a bad cheque or a cheque that does not conform to the signature and seal reserved by the cheque shall be fined 5% of the face value but not less than 1,000 yuan by the People's Bank of China of the face value", and a "blacklist" system has been established for violating the rules of dishonoured cheques.

Generally, companies have a good working relationship with the bank.

If the law is strictly enforced.

You'll be fined.

on the blacklist. But the reality is.

A lot of times the people at the bank will inform you.

You can take the check back and resign it and make sure the bank has enough money.

The central bank has formulated an administrative penalty system for bad checks.

In the process of using checks, there is the phenomenon of some units and individuals issuing blank checks, which not only damages the legitimate interests of the bearers, affects the use and circulation of checks, but also affects the smooth remittance of settlement funds and the economic and financial order. In order to protect the legitimate interests of note holders, maintain economic and financial order, and promote the healthy development of bill business, the People's Bank of China recently issued the Circular of the People's Bank of China on Issues Concerning Administrative Penalties for the Issuance of Bad Checks (hereinafter referred to as the "Circular"), stipulating that the People's Bank of China and its branches shall impose administrative penalties on violations of the issuance of bad checks. The Circular clarifies the following provisions:

The first is to provide for the imposition of administrative penalties for violations of bad checks. The Circular clarifies that the entities subject to the administrative penalty of bad checks are the People's Bank of China and its branches; The basis and standard of punishment is Article 31 of the Implementation Measures for the Administration of Bills, which stipulates that "if a bad check is issued or a check inconsistent with the signature and seal reserved by the bank, and the purpose is not to obtain property by fraud, the People's Bank of China shall impose a fine of 5% of the face amount but not less than 1,000 yuan"; The Circular clarifies that the drawer shall pay the penalty for dishonored cheques on his or her own initiative within the prescribed time limit at the designated penalty collection agency, and if the penalty is not paid within the time limit, the People's Bank of China and its branches may impose an additional fine of 3% of the amount of the fine per day, require the bank to stop issuing the cheque, and apply to the people's court for compulsory enforcement.

The second is to establish a "blacklist" system for dishonored check violations. In order to intensify the supervision of bad checks, branches of the People's Bank of China have established a "blacklist" system for issuing bad checks, and regularly report relevant information on violations to banks in the same clearing area.

The third is to clarify the responsibilities of supervision and management. The head office of the People's Bank of China is responsible for formulating and supervising the implementation of the penalty system for bad checks; Branches of the People's Bank of China are responsible for the organization and implementation of administrative penalties for bad checks within their jurisdictions; The drawer's bank is responsible for reporting the irregularities in issuing dishonored cheques and serving relevant legal documents on behalf of the drawer; The fine collection agency is responsible for the collection of fines.

Fourth, the responsibility for violations has been strengthened. According to the division of powers, the Circular stipulates the liability of the penalty collection agency, the drawer's bank and the drawer of the bad check. Where a fine collection agency occupies or misappropriates the proceeds from dishonoured cheques, the People's Bank of China and its branches shall impose penalties in accordance with the relevant provisions of the Measures for the Punishment of Financial Violations, and if the circumstances are serious, pursue the administrative responsibility of their senior management personnel and directly responsible persons; If the drawer's bank fails to report, omits or delays in reporting the drawer's issuance of blank checks, the People's Bank of China shall order it to make corrections, and if it fails to make corrections within the time limit and the circumstances are serious, the administrative responsibility of its senior management personnel and directly responsible persons shall be investigated; The bank has the right to stop handling the cheque or all payment and settlement business for the drawer who repeatedly issues dishonoured cheques.

Analysis of the law or sail law: The consequence of issuing a bad check is to bear a fine, and this behavior is also illegal. Anyone who issues a bad cheque or a cheque that does not match the signature and seal reserved by the cheque is not for the purpose of fraudulently obtaining property shall be fined by the People's Bank of China 5% of the face value but not less than 1,000 yuan; The "Circular" clarifies that the drawer shall take the initiative to pay the fine of the bad cheque within the prescribed time limit at the fine collection agency designated by the group, and if the hail is not paid within the time limit, the People's Bank of China and its branches may take measures such as imposing an additional fine of 3% of the amount of the fine per day, requiring the bank to stop issuing the cheque, and applying to the people's court for compulsory enforcement.

Legal basis: "Measures for the Implementation of the Administration of Negotiable Instruments" Article 31 If a bad check is issued or a check that does not conform to the signature and seal reserved by it, not for the purpose of obtaining property by fraud, it shall be returned to the People's Bank of China by the People's Bank of China and imposed a fine of 5% of the face value but not less than 1,000 yuan; The bearer has the right to claim compensation from the drawer for 2% of the amount of the cheque.

Legal Analysis: Issuing a bad check is subject to industry penalties, according to the relevant legal provisions. The People's Bank of China shall impose a fine on the act of issuing bad checks for the purpose of defrauding property; If the drawer of the dishonoured cheque does not voluntarily pay the penalty, a penalty will be imposed on a daily basis.

A blank cheque refers to a cheque in which the drawer's actual legally available deposit with the payer is insufficient to pay the amount of the instrument when the cheque holder requests payment. The Negotiable Instruments Act stipulates that the amount of the cheque issued by the drawer of the cheque shall not exceed the amount of the cheque actually deposited with the payer, that is, no dishonoured cheque shall be issued, which requires the drawer to ensure that it has sufficient funds in the deposit account with the payer to pay the amount of the cheque from the date of issuance to the completion of payment. Those who issue dishonored checks to obtain property by fraud should be investigated for criminal responsibility in accordance with the law.

If the circumstances of the act of issuing a short bill to defraud the property are minor and do not constitute a crime, the Negotiable Instruments Law stipulates that administrative punishment shall be imposed in accordance with the relevant provisions of the state.

Legal basis: Measures for the Implementation of Bills Management

Article 31 Where a bad cheque or a cheque inconsistent with the signature and seal reserved by the cheque is issued, and the purpose is not to obtain property by fraud, the People's Bank of China shall impose a fine of 5% of the face value but not less than 1,000 yuan; The bearer has the right to claim compensation from the drawer for 2% of the amount of the cheque.

Article 32 If the staff of a financial institution neglects their duties in the negotiable instrument business, and accepts, pays, guarantees or discounts the negotiable instruments in violation of the provisions of the Negotiable Instruments Law and these Measures, the directly responsible person in charge and other directly responsible personnel shall be given a warning, demerit, dismissal or dismissal; Where major losses are caused and a crime is constituted, criminal responsibility is pursued in accordance with law.

The drawer issues a cheque that is a blank check if the account balance is insufficient to cover the amount of the cheque issued. The Negotiable Instruments Law stipulates that the amount of the cheque issued by the drawer of the cheque shall not exceed the amount of the actual deposit with the payer, that is, the dishonoured cheque shall not be issued, which requires the drawer to ensure that there are sufficient funds in the deposit account of the payer to pay the amount of the cheque from the date of issuance to the completion of payment. The relevant laws and regulations of our country have provisions on the fines of bad checks.

In the process of using checks, there is a phenomenon that some units and individuals issue blank checks, which not only damages the legitimate interests of the bearer, affects the use and circulation of checks, but also affects the smooth remittance of settlement funds and the economic and financial order, and should be fined for bad checks. In order to protect the legitimate interests of note holders, maintain economic and financial order, and promote the healthy development of bill business, the People's Bank of China issued the Circular of the People's Bank of China on Issues Concerning the Implementation of Administrative Penalties for the Issuance of Bad Checks (hereinafter referred to as the "Notice"), which stipulates that the People's Bank of Pichun and its branches may impose fines on the issuance of bad checks.

The first is to provide for the imposition of administrative penalties for violations of bad checks. The Circular clearly states that the subject of administrative punishment for bad checks is the People's Bank of China and its branches; The basis and standard of punishment is Article 31 of the "Implementation Measures for the Administration of Bills", which stipulates that "if a bad check is issued or a check inconsistent with the signature and seal reserved by the bank, and the purpose is not to obtain property by fraud, the People's Bank of China shall impose a fine of 5% of the face amount but not less than 1,000 yuan for the bad check"; The Circular clarifies that the penalty for bad cheques shall be paid by the drawer at the designated fine institution within the prescribed time limit, and if the payment is not made within the time limit, the People's Bank of China and its branches may impose an additional fine of 3% of the amount of the fine per day, require the bank to stop issuing the cheque, and apply to the people's court for compulsory enforcement.

According to the division of powers, the "Circular" stipulates the liability of three parties: the fine collection agency for dishonored cheques, the bank where the drawer opens an account and the drawer of the dishonoured cheque. Where the dishonoured cheque fine collection agency occupies or misappropriates the proceeds from dishonoured cheque fines, the People's Bank of China and its branches shall impose penalties in accordance with the relevant provisions of the Measures for the Punishment of Financial Violations, and if the circumstances are serious, pursue the administrative responsibility of their senior management personnel and directly responsible persons; If the drawer's bank fails to report, omits or delays in reporting the drawer's issuance of blank checks, the People's Bank of China shall order it to make corrections, and if it fails to make corrections within the time limit and the circumstances are serious, the administrative responsibility of its senior management personnel and directly responsible persons shall be investigated; The bank has the right to stop handling the cheque or all payment and settlement business for the drawer who repeatedly issues dishonoured cheques.

Article 30 of the Measures for the Implementation of the Administration of Bills stipulates that if a bad check or a check inconsistent with the signature and seal reserved by the bill is not issued for the purpose of fraudulently obtaining property, the People's Bank of China shall impose a fine of 5% of the face value but not less than 1,000 yuan.

1. What are the responsibilities of signing empty invoices?

1. Administrative responsibility.

Article 31 of China's "Implementation Measures for the Administration of Bills" stipulates: "Anyone who issues a blank cheque or a cheque that does not conform to the signature and seal reserved by the cheque is not for the purpose of fraudulently obtaining money, the People's Bank of China shall impose a fine of 5% of the face value but not less than 1,000 yuan, and the bearer has the right to demand compensation from the drawer for 2% of the amount of the cheque." "For repeated issuance of cheques, banks need to stop their issuance of cheques.

2. Criminal liability.

If it constitutes a crime to defraud public or private property by issuing dishonoured checks, the Criminal Law of our country stipulates that he may be sentenced to fixed-term imprisonment of not more than 5 years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; where the amount is huge or there are other serious circumstances, a sentence of between 5 and 10 years imprisonment and a concurrent fine of between 50,000 and 500,000 RMB is to be given; where the amount is especially huge or there are other especially serious circumstances, a sentence of 10 or more years imprisonment or indefinite imprisonment is to be given, and a concurrent fine of between 50,000 and 500,000 RMB or confiscation of property is to be given.

3. Civil liability.

The act of issuing a blank check is expressly prohibited by the Negotiable Instruments Law of China, therefore, in addition to requiring the drawer to pay the amount and expenses stipulated in the Negotiable Instruments Law of the People's Republic of China, the bearer also needs to ask the drawer to bear the liability for compensation for the losses caused to it by the blank cheque issued.