The importance of the check
The check originates from the custom of depositing, for security reasons, funds or money in the banks, providing these to the applicants first a custody service and later cash, collecting credits and interests and paying debts to their clients.
It is a payment order incorporated into a credit instrument that allows the drawer to have, in favor of a certain person, the simple bearer of the title to make use of the funds available in a bank.
In the check like in the bill of exchange are found as parts one person called drawer or drawer, another called drawee, a beneficiary or carrier; so a check is a title value in which the drawer gives an order to the drawee to pay the sum of money stipulated in the content of the check to the payee in case it is a specific person or who carries it if it is payable to the bearer. This title value is very important because through it they are made easier business relationships; for example, it is easier to pay a high sum of money through a check that in cash, this kind of title has a close relationship with the financial system. What’s more from the requirements general that should contain everything qualification value, c’s particular requirements cheque are the following:
To the same what on the lyrics from change the order unconditional of to pay a certain sum of money.
The name of the drawee bank.
The indication of being payable to the order or to the bearer, regarding this requirement many people consider checks must be always payable to the order of a certain person, due that if, for example, it were lost or stolen, it would not be paid but to the person listed as beneficiary, but if they are issued to the carrier anyone can collect them. The truth is that the commercial code establishes in the numeral 3 of article 713, says which must have the expression of being payable to order or to carrier.
On the other hand, in addition to general requirements of all security and individuals, the check from bank or checks online has a special requirement, it must be printed on printed forms of checks or check books payable by a bank, if omit this special requirement the check does not will produce security effects. Finally, for the check to be issued it is necessary that the drawer have funds in the bank; that the bank has authorized the issuance of the same.
Something that gives it superiority over the banknote is the fact that its use works with the same degree as paper money, the danger of fiat inflation.
Acceptor: person who agrees to pay the debt contained in the check.
Endorser: person who, having been the beneficiary of the check, transfers it to other people.
Endorsee: person who acquires the check by endorsement and becomes the new beneficiary.
Guarantor: people who ensure compliance with the obligation.
For merchants, who handle large sums of money, the check is of greater importance since it allows them to simplify their accounting, reducing costs of sending funds through transfers and increasing their credit, since the same bank kept their deposits serves as a commercial reference.