1. Cheques Kristýna Nevolová

2. Cheque Check – in American English Abide by the act number 191/1950, act about cheques and drafts It is a document, by which the drawer (owner of the current account) unconditionally order the drawee (bank) to pay a sum of money from his account to the owner of the cheque

3. Cheque Compulsory requirements: ▫Designation that it‘s a „cheque“ ▫Order to pay an amount of money – „pay against this cheque“ ▫The name of the drawee (who has to pay) ▫Place, where should be pay ▫Date and place where the cheque was made out ▫Signature of the drawer

5. Subjects Drawer – ask (order) the bank to pay a sum of money Drawee – bank which pay the sum of money form the current account of the drawer Payee – someone to whom has to be pay Drawer drawee payee

6. The History of cheques In the past – very important means of payment Since 1948 – using of cheques was limited After 1990 – the original importance didn´t return Nowadays cheques are used only exceptionally

7. Repayment The law determine the maturity at sight – after submitting to drawee. The cheque should be submit at the latest:  In the same state – 8 days  Two different states – 20 days  Two different continents – 70 days

8. Kinds of cheques By the person payee Cheque to order Cheque on name Cheque to owner By the drawer Bank cheque Private cheque Special kinds of cheques Cheque to be cleared Travel cheques

9. Kinds of cheques A) cheque to order there is notice „to order“ or „transferable by endorsement“ – the owner can write a new person on the back side of the cheque B) cheque on name there has to be name of the person whom will be pay. The name of payee. „Without endorsement“ C) cheque to owner if there isn‘t name. The sum of money will get the person who submit the cheque

10. Crossing Cheques are usually printed with two lines which are called the crossing. A crossed cheque means that the money can only be paid into a bank account. If the cheque is crossed „Account payee“, it can only be paid into the account of the person named on the cheque

11. Cheques with crossing

12. The drawer Bank cheque  The drawer is a bank, the drawee is another bank  Very high quality Private cheque  legal person (corporate) or private person

13. Special kinds of cheques Cheque to be cleared  Can‘t be repay in cash, only transferred to the current account Travel cheque

14. Use in international tourism The well known drawers – VISA, American Express Requirements:  Designation that it is a travel cheque  Order or promise to pay the sum of money to a payee  Name of the drawer and his signature

15. Travel cheques Different using:  before the journey client buy travel cheques in his bank  He sign these cheques before the employee of the bank  In foreign country the client sign the travel cheques again in front of the employee of the repaying bank  The signatures have to be identical

16. Travel cheque

17. Advantages and disadvantages Advantages -You don‘t have to carry large amounts of cash with you -Your money is on a bank account where it is safe from loss or theft -It can be done anywhere without going to a bank -It minimize a risk of loss or theft of huge amount of money

18. Advantages and disadvantages Disadvantages ­ The bank cheques are quite expensive – about 300 CZK for the make out ­ The private cheque could be bad cheque and it‘s very difficult to check it. Issuing the bad cheque is offense (criminal act) and the bank doesn‘t repay it ­ For using cheques is necessary to have much more money on your current account

19. Questions Which kind of cheque isn‘t abide by the act number 191/1950 act about cheques and drafts? And in which act is abide by? Are bank cheques used more by private clients or by corporations? Why aren‘t cheques popular in Czech Republic?

20. More disadvantages Long time between transmit and repayment – days or weeks Fee connected with cash the cheque