Check
■ By check is a security containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder. Drawer of the check is a legal or natural person who has funds in the bank, which he has the right to dispose of by issuing checks, check holder – legal entity or individual in whose favor the check was issued, payer - the bank in which the drawer's funds are located.
In addition to the indicated participants of the check, the following may participate in its circulation: endorsers – check holders who transfer the check to other persons using an endorsement – endorsement, and avalists, who, as in a bill of exchange, act as guarantors for one of the participants in the check, formalizing their guarantee with the corresponding inscription on the check (avalem).
From check history
The emergence of checks as credit instruments of circulation is associated with the development of commercial banks and the concentration on their current cash accounts. Checks first began to be used at the turn of the 16th–17th centuries. in the Netherlands and Great Britain and took the form of bank receipts payable to bearer, which could be used for payments. In the second half of the 19th century. Some European countries adopted the first check laws. As trade and banking developed, checks began to be used not only in domestic payment transactions, but also in international payments. In order to unify the procedure for using the check, it became the subject of an international agreement. In 1931, three check conventions were signed in Geneva - on the Uniform Check Law, on the resolution of certain conflicts of laws on checks and on stamp duty in relation to checks.
The USSR, and subsequently Russia, did not join the Geneva Convention, and the procedure for circulation of checks in our country is determined by internal acts. Thus, by resolution of the Supreme Council of the Russian Federation dated February 13, 1992, the regulation on checks was approved, on the basis of which the Bank of Russia approved the rules for settlements by checks on the territory of the Russian Federation (letter of the Bank of Russia dated January 20, 1992 No. 18-11/52). With the entry into force of Part Two of the Civil Code of the Russian Federation, these documents lost force. The form of the check was established by Resolution of the Presidium of the Supreme Council of the Russian Federation dated January 13, 1992 No. 2174-1 “On the introduction of a new type of checks into economic circulation.” The Civil Code of the Russian Federation also defines the details that a check must contain.
As with a bill of exchange, the absence of any of the specified details in the document will invalidate it as a check. Required check details:
- 1) the name “check” included in the text of the document;
- 2) an order to the payer to pay a certain amount of money;
- 3) name of the payer and indication of the account from which the payment should be made;
- 4) indication of the payment currency;
- 5) indication of the date and place of drawing up the check;
- 6) signature of the person who wrote the check (drawer).
The inclusion of the name "check" in the text of the document is also called a "check mark". A check that does not indicate the place of its issue is considered to be signed at the place of origin of the drawer. The percentage statement is considered unwritten.
The basis for issuing a check is an agreement between the drawer and the payer (check agreement), according to which, as a rule, the latter undertakes to pay checks if he has funds in his account. In pursuance of the agreement, the payer issues a checkbook to the drawer. The check must comply with the formal requirements of the law. The payer of the check - the bank in which the drawer's funds are located - must, upon presentation of the check for payment, verify, as stated in the law, "by all available means" the authenticity of the check and the powers of the check holder. When paying an endorsed check, the drawee is required to verify the correctness of the endorsements, but not the signatures of the endorsers. The latter is understandable, since the endorsers’ signatures on the check may be so illegible that the check payment procedure may take a long time.
As stated, a check can be transferred from one person to another by endorsement. In a transfer check, the endorsement has the force of a receipt for payment. A person in possession of a check of exchange received under an endorsement is considered its legal owner if he bases his right on a continuous series of endorsements. The drawer cannot transfer a bill by endorsement. A personal check is not transferable.
The check is payable by the payer provided it is presented for payment within the period established by law (10 days from the date of its issuance).
Payment of a check may be guaranteed in whole or in part by avalya, which can be issued by any person, even a party to the bill, other than the payer. The aval is affixed on the front side of the check or on an additional sheet (allonge) with the inscription “considered as aval” and an indication of who and for whom it was given. If it is not indicated for whom it was given, then it is considered that the aval was given for the drawer of the check.
The aval is signed by the avalist, indicating his place of residence and the date of the inscription, and if the avalist is a legal entity, then his location and the date of the inscription. The avalist answers in the same way as the person for whom he gave the aval. Moreover, his obligation is valid even if the obligation which he guaranteed is found to be invalid for any reason other than failure to comply with the form. The avalist who pays the check acquires the rights arising from the check against the person for whom he gave the guarantee and against those persons who are obligated to the latter.
Presentation of a check to the bank serving the check holder for collection to receive payment is considered presentation of the check for payment. The funds under the collected check are credited to the check holder's account at the expense of the drawer, unless otherwise provided by the agreement between the check holder and the bank. For example, a bank may provide short-term loans to its client, which will pay his checks.
The payer's refusal to pay the check must be certified in one of the following ways:
- 1) by a notary making a protest or drawing up an equivalent act in the manner prescribed by law;
- 2) a note from the payer on the check about the refusal to pay it, indicating the date the check was submitted for payment;
- 3) a note from the collecting bank indicating the date that the check was issued on time and not paid.
A protest or an equivalent act must be made before the expiration of the period for presenting the check, and if the check was presented on the last day of the period, the protest or an equivalent act can be made on the next business day.
The check holder is obliged to notify his endorser and drawer of non-payment within two business days following the day of the protest or an equivalent act. Notification is carried out by sending notice (notis), compiled in any form. Each endorser must, within two working days following the day he received the notice, bring to the attention of his endorser, as well as his avalist, the notice he received. Anyone who fails to send a notice within the specified period does not lose his rights, but is obliged to compensate for losses that may occur as a result of failure to notify about non-payment of a check, the amount of which cannot exceed the amount of the check.
If the payer refuses to pay a check, the check holder has the right, at his choice, to file a claim against one, several or all persons obligated on the check (drawer, avalists, endorsers), who are jointly and severally liable to him.
The check holder has the right to demand from the indicated persons payment of the amount of the check, their costs for receiving payment, as well as interest in accordance with clause 1 of Art. 395 of the Civil Code of the Russian Federation. The same right belongs to the person obligated on the check after he has paid the check.
A claim by the check holder against these persons may be brought within six months from the date of expiration of the period for presenting the check for payment. Recourse claims on claims of obligated persons against each other are extinguished with the expiration of six months from the day when the corresponding obligated person satisfied the claim, or from the day the claim was brought against him.
A check (English Check, French cheque) is a security containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder.
A check is a monetary document of a strictly established standard, containing an order from the account holder at a credit institution to pay the check holder, upon presentation, the amount of money indicated in this document.
Let's clarify some terms:
Drawer is a person who has funds in the bank, which he has the right to dispose of by issuing checks.
Check holder is the person in whose favor the check is issued.
Payer - the bank in which the drawer's funds are located.
Endorser is a person who transfers rights under a check to another person through an endorsement (endorsement).
Endorser is a person who receives rights under an endorsement.
Only credit institutions that have a license to engage in banking activities are endowed with the ability to act as a real payer of a check.
A check, as a short-term monetary document, does not have the status of legal tender. Their production is entirely determined by the needs of commercial turnover. Its main purpose is to be a tool for managing funds in a current account, a means of non-cash payments.
The relationship between the drawer and the payer is built on the basis of a check agreement, which creates the obligation of the payer bank to fulfill obligations to the drawer to pay the check, subject to the latter complying with all the necessary formalities.
Checks can be used by both legal entities and individuals. A book containing check forms is issued by the bank to its client on the basis of an agreement concluded with him. To pay for them, two sources can be used: the client's money deposited in a special checking account, and funds provided to the client by the bank itself.
The procedure and conditions for the use of checks in payment transactions are regulated by the Civil Code of the Russian Federation, and in the part not regulated by it, by other laws and banking rules established in accordance with them.
Checks, like securities, are among the established means of payment. They are widely used as a universal means of payment in domestic circulation and in international payments.
TYPES OF CHECKS
Depending on the type of payment, cash and settlement checks are distinguished.
Cash checks are used to pay the holder of cash at the bank. This is a document of the established form containing an order from an enterprise to a bank institution to pay from the drawer's account in cash the amount specified in the check.
A settlement check is used for non-cash payments. This is a document of the established form containing an unconditional written order from the drawer to his bank to transfer a certain amount of money from his account to the account of the recipient of the funds (check holder).
Cash checks can be covered or uncovered.
Payments on dishonored checks are guaranteed by the bank. The bank guarantees to the drawer of the check, in the event of a temporary lack of funds in his account, payment of checks at the expense of the bank.
Funds for covered settlement checks are pre-deposited by the drawer client in a separate bank account, Settlement Checks, which provides a guarantee of payment.
Currently, according to the instructions of the Central Bank of the Russian Federation, only covered settlement checks are used in settlements.
A type of settlement check is a crossed check, on the front side of which two parallel lines are drawn. The meaning of crossing is to limit the use of such a monetary document among the circle of holders. There are general and special crossings.
If there is no designation between the lines or there is a “banker” or equivalent marking, then such crossing is common. It means that the check can be paid to any bank for collection.
Special crossing is an indication between the printed lines of the name of the bank to which the check must be presented for payment.
Thus, a general crossing can be turned into a special one, while a special one cannot be turned into a general one, since striking out the crossing or the name of the bank is considered invalid.
Both the person who wrote the check and the holder of the check can cross. A crossed check cannot be directly exchanged for cash - it can be paid through a credit institution and nothing else. In this case, the following scheme applies: the owner of the check submits it to the bank, which transfers the corresponding amount from the account of the organization or individual who issued this security to the account of the person presenting the crossed check.
In banking practice, depending on who is indicated as the payee, checks are divided into personal, order and bearer.
A personal check is issued to a specific recipient of the money. It directly indicates the person who is the recipient of the amount of money indicated in this document. Only this person, and no one else, has the right to receive the amount of money for this type of check. Such a check is issued with the clause “not to order”; it cannot pass from hand to hand with an endorsement. In Russian practice, all checks used to receive cash are registered. They are widely used to obtain cash from commercial banks.
An order check is issued in favor of an identified person, but it can be transferred to another person - the owner, if there is a desire (indication) of the person originally indicated in this monetary document. The endorsement (endorsement) is made on the back of the check. An order check is issued with or without the “order” clause and is now widely used in payments for goods and services.
A bearer's check is issued to the bearer or without specifying the check holder and is circulated by simple delivery, without making an endorsement.
A bank check is issued and signed by a bank to its correspondent bank and implies payment from the funds of the drawer bank in its accounts at the correspondent bank abroad.
DESIGN AND RULES FOR APPLICATION OF CHECKS
In modern banking practice, check circulation begins with the conclusion of a check agreement between the bank client and the payer bank. The client applies to the private bank servicing him with an application in the prescribed form, in which he indicates the number of checks and the amount of the total need for settlements with them. Based on this data, the limit of one check is determined, which must be placed on the reverse side of each monetary document. The application for the issuance of checks is signed by the head of the enterprise, the chief accountant and certified by a seal.
Simultaneously with the application, the client submits a payment order to the bank to transfer the declared amount of money from his current account to the “Settlement checks” account. After concluding the agreement, the drawer is given a checkbook and a card, which is used to identify him.
The checkbook consists of forms of checks “Settlement check”, bound in standard books of 10, 25 and 50 sheets. Checkbook forms are produced according to a single sample; their form is established by the Central Bank of the Russian Federation. They are considered strict reporting forms. For settlements through institutions of the Central Bank of the Russian Federation, only checks with the designation “Russia” on the front side and two parallel lines indicating general crossing are used.
The check must contain:
- the name “check” included in the text of the document and expressed in the language in which this document is drawn up;
- a simple, unconditional offer to pay a certain amount of money;
- name of the payer;
- indication of the place where the payment should be made;
- indication of the date and place of drawing up the check;
- signature of the drawer.
The absence of any of the specified details in the document deprives it of the validity of a monetary document. A check that does not indicate the place of its issue is considered to be signed at the place of origin of the drawer.
Along with the checks, the bank issues the client an identification card, which contains the name of the bank and its address, number, name of the business entity or citizen, signature, account number and passport details of the drawer. The reverse side specifies the conditions under which payment of the check is guaranteed.
The source for payment of checks may be the drawer's own funds, bank loans, or other coverage. A check limit (limit amount for issuing a check) may be placed on a monetary document. It can be issued for an amount not exceeding the specified limit.
Checks are issued in one copy, signed by persons entitled to dispose of the bank account, sealed by the drawer and paid in full. Simultaneously with the check, the balance of the limit is transferred to the counterfoil and certified by the responsible person. The counterfoil of the check remains in the drawer's book and serves to control the use of the check book limit and the payment of checks. When issuing the next check, the drawer (buyer) transfers the balance of the limit from the counterfoil of the previous check to the monetary document and displays the rest of the limit.
A check must be paid in the full amount for which it is drawn, without any commission, subject to the following conditions:
- the drawer’s signature must correspond to the sample signature on the card;
- identification of the drawer is carried out by comparing his passport data with the data indicated on the check card.
In accordance with the banking rules established in accordance with the law and business practices applied in banking practice:
- only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as the payer of the check;
- the issuance of a check does not extinguish the monetary obligation in fulfillment of which it was issued;
- the check is paid at the expense of the drawer by the payer, subject to its presentation for payment within the prescribed period. The person who paid for it has the right to demand that a document with a receipt of payment be handed over to him;
- presentation of a check for payment is carried out by the check holder by presenting it to the bank serving the check holder for collection (check collection);
- the check holder must notify his endorser and drawer of non-payment of a check within two working days from the date of the protest or an equivalent act;
- if the payer refuses to pay the check, the check holder has the right of recourse, according to which he has the right to make a claim for payment to all persons obligated by the check - the drawer, avalists, endorsers, who are jointly and severally liable to the check holder.
- withdrawal of a check before the expiration of the period for its presentation is not allowed.
It should be borne in mind that the check only replaces, but does not eliminate, the previous debt obligation of the drawer, which remains in force until the check is paid by the payer. From this moment, the check holder loses the right of claim against the drawer.
In the event of an unjustified refusal to pay a check, the payer is liable to the drawer of the check, but not to the holder of the check. The Civil Code of the Russian Federation establishes a shortened limitation period (6 months) for claims by the check holder against persons obligated under the check. It is calculated from the date of expiration of the deadline for presenting a monetary document for payment.
Payment scheme using checks:
- the seller presents to the buyer (check drawer) documents for the shipped products (work performed, services rendered);
- the buyer issues a check to the seller;
- the seller (check holder) presents the check to the bank servicing the seller at the register of checks;
- the bank servicing the seller credits funds to his account;
- the seller’s bank presents a check for payment to the bank servicing the buyer;
- the bank servicing the buyer writes off the amount of the check from previously reserved amounts;
- banks issue bank account statements to clients.
Check validity period
The deadline for presenting checks for payment is not established by law. However, taking into account that the procedure and conditions for the use of checks in payment transactions are regulated, in addition to the Civil Code, by other laws and banking rules established in accordance with them, it can be noted that on the territory of the Russian Federation a check is payable within:
- 10 days if he is discharged in Russia;
- 20 days if issued on the territory of the CIS member states;
- 70 days if issued in the territory of any other state.
Endorsement
All rights under a check can be transferred to another person through a special endorsement - an endorsement, affixed to the back of this monetary document. The endorsement must be signed by the person on whose behalf it is given.
An endorsement, just like a check, can be blank, personal or order.
A blank endorsement consists of a single signature of the last legal holder of the check or a signature accompanied by a statement that the check is payable to any holder thereof.
The personal endorsement contains the name of the person to whom the check is to be paid: "Rau to......".
If next to the indication of the person to whom the check is paid there is a postscript: “...or order” or the endorsement contains the wording: “Pau to the order of...”, such an endorsement is an order.
A special type of endorsement is a guarantee. The peculiarity of this type of endorsement is that by affixing it, the holder of the check (endorser) pursues the goal of transferring to the endorser indicated by him not the right to receive money under the document, but only the right to collect the amount of the check in favor of the endorser, therefore, guarantee endorsements are affixed in favor of the banking institution engaged in collection.
The endorsement must be unconditional; any condition limiting the validity of the endorsement is considered invalid.
The endorsement must be for the entire amount of the check.
The endorsement placed on the check may be crossed out. A crossed out endorsement is considered unwritten and, therefore, interrupts the successive series of endorsements.
An endorsement made carelessly, with erasures or corrections, is equivalent to a crossed out one.
Aval
To enhance confidence in a check and increase guarantees of payment for it, the use of the so-called aval is allowed. Avalist is a person who guarantees, by means of a special inscription, payment of a check if the person obligated to pay does not fulfill his obligations. Aval can be given by any person, with the exception of the payer (bank), for the entire amount of the check or only for part of it. The aval is placed on the front side of the check or on an additional sheet by writing “considered as aval” and indicating by whom and for whom it was given. If it is not indicated for whom it was given, then it is considered that the aval was given for the drawer of the check. The aval is signed by the avalist, indicating his place of residence and the date of the inscription, and if the avalist is a legal entity, his location and the date of the inscription.
If the payer refuses to pay the check, all persons obligated on the check - check holder, avalist, endorser - are jointly and severally liable to the check holder. The check holder has the right to demand from the indicated persons payment of the amount of the check, their costs for receiving payment, as well as interest in accordance with clause 1 of Art. 395 of the Civil Code of the Russian Federation. The same right belongs to the person obligated by the check after he has paid the money document.
Check acceptance- this is a mark indicating the consent of the payer bank to transfer the amount specified in the check to the recipient’s account. To accept a check, the payer submits a check addressed to the recipient of the money and a payment order to the bank institution servicing him. The amount indicated on the check is debited from the drawer's account and deposited in a separate account. Then the check, accepted by the bank, is transferred to the payer, and he hands it over to the supplier upon receipt of the goods or organization providing services.
CHECK DOCUMENTS
The use of classic checks in Russia is very rare. They are actively used only in international settlements for foreign economic transactions. Currently, documents containing the word “check” in their name, but by their legal nature not being checks, are widely used. Their circulation is regulated not by check legislation, but by special instructions of issuers.
Cash or cash checks are used for the client - organization to receive cash for various own needs. Their use is strictly for the intended purpose. Cash received by businesses from banks is spent for the purposes specified on the check. It is necessary to recognize the “non-check” nature of cash register receipts due to the fact that they do not directly perform settlement functions.
A control check is issued to consumers when purchasing goods (services), when printed, the readings in the fiscal memory of the cash register change. The control check must contain the following information:
- name of the taxpayer;
- RNN;
- serial number of the cash register;
- registration number of the cash register;
- serial number of the check;
- date and time of purchase (service provision);
- the price of the product (service) and (or) the purchase amount including taxes;
- fiscal sign.
A credit check is issued for the amount of the payer's loan to the drawer (loan from the bank). It is issued to the drawer of the check in his own name, but with payment from the debt of another person to the drawer.
A company check corresponds to its name and is issued by the company to bearer in national or foreign currency to its bank for settlements with counterparties. Payment for them is made at the expense of the drawer of the check.
A traveler's check is a payment document representing a monetary obligation of the issuer to pay the amount indicated in the check to its owner, a specific individual, whose sample signature is placed on the check at the time of sale. They are issued by the largest banking institutions and serve for the convenience of storing and converting funds during trips, since they represent one of the ways to protect the owner from the loss and theft of money.
Treasury checks can be issued by a bank signed by the bank's treasurer.
A commercial check is used to make commercial payments (payment of advances, guarantees and other amounts). It is used when making non-commodity transactions and is essentially a type of bank transfer of funds from country to country. A commercial check is issued for any amount in the required currency to a specific person (individual or legal entity). In case of loss, it is possible to suspend payment on a check by promptly informing the bank about this and indicating the reason for the withdrawal. A special feature of a commercial check is that it cannot be transferred to third parties: it is accepted for collection only from the beneficiary (the recipient of the money on the check).
Advantages and disadvantages of checks
The advantage of a check over other forms of payment is its efficiency and simplicity. A check can be issued at any time and anywhere. Its specific property is to ensure complete anonymity of the payment in the sense that it does not indicate for what reason the drawer issues the check, as well as for what reason the money is paid to the check holder.
For the supplier, payments by check have the following advantages:
- relative speed of calculations;
- greater speed of receipt of money into the check holder’s account and, accordingly, acceleration of turnover and reduction of receivables.
Payments by checks for the supplier also have disadvantages:
- impossibility of settlements by checks for large amounts of payments;
- insufficient guarantee of payments due to insufficient funds from the drawer, i.e. the cost of received inventory items or services must match the amount of the check;
- possibility of counterfeiting.
The check form of payment also has certain advantages for the buyer - it is a high degree of guarantee of receipt of the goods, since the check is issued or transferred at the time of receipt of the goods, performance of work and provision of services. Among the disadvantages is the relative difficulty in issuing a check by the buyer; upon receipt of the product, it may turn out that part of it does not meet the recipient’s requirements, or, conversely, a product has appeared that the consumer needs, and the amount of the check does not allow its size to be reduced or increased.
A check is convenient for settlements in cases where the payer does not want to give money before receiving the goods, and the supplier does not want to transfer the goods before receiving payment guarantees.
When paying by check, the supplier can completely protect himself from doubts about the timing of settlement with the buyer and acceleration of payment. A check is also convenient for payments in all cases where the seller is initially unknown.
A check is convenient when the details of the payee are unknown or if the payee for some reason does not want to provide them, which happens quite often in relations with foreign companies. Moreover, the costs of carrying out an international payment order can be disproportionately high if you need to transfer a small amount of money.
Check- a document in the established form containing a written order from the drawer of the check to the payer to make a payment to the holder of the check of the amount of money indicated in it.
Check properties:
1. abstract nature of the obligation;
2. the unconditional nature of the obligation on the check;
3. always a monetary obligation;
4. always a written document in a strictly established form;
5. the parties obligated by the check are jointly and severally liable;
6. The bank always acts as an intermediary when paying by check.
Check a special form of bill of exchange, the payer of which is always a commercial bank.
Required details:
· Name;
· an order to the bank to pay a certain amount;
· name of the payer and details of the account from which the payment should be made;
· currency of payment;
· date and place of drawing up of the check;
drawer's signature
A check is not a form of credit and does not accrue interest.
Types of checks:
Cash checks– used only to receive cash to the bank.
Payment check – Payment in cash is not allowed.
Order check- transferred by endorsement.
Travel check– serves as a means for the safe storage and transportation of personal funds when traveling by an individual (legal entity) – the owner of the check and is not an instrument for transferring funds from an individual (legal entity) to another person.
IHR “Housing”;
IHR "Property".
Housing – state registered securities, secured by state property, subject to gratuitous transfer to citizens of the Republic of Belarus, indicating the right of their owners to a share in the privatized state property and expressing the size of this share.
Housing was issued by Belarusbank divisions at the place of residence on the basis of a list of citizens with a housing quota approved by decisions of the local executive and administrative body upon presentation of an identification document before January 1, 2006.
Housing checks can be used:
1. for the privatization of occupied residential premises in public housing buildings;
2. to pay a share contribution in a housing cooperative, or to repay a loan;
3. to finance individual housing construction;
4. privatization of state property;
5. exchange for other securities.
Since January 2005, all transactions with checks are carried out only through the mediation of professional participants of the Securities Market.
Checks are indexed taking into account the indices of construction and installation works.
IHR “Property”- government securities, the owners of which have the right to exchange checks for shares of OJSC created in the process of transformation of state-owned enterprises.
In the Republic of Belarus, check privatization began in 1994 and has continued for 16 years, although it was planned for 5 years. The government has already made attempts to draw a line under check privatization 6 times - in 1999, 2001, twice - in 2003, as well as in 2004 and 2007.
In this article we will analyze what belongs to securities, what types they are divided into and what properties they have.
Security concept
This is the name of a document that certifies, in compliance with the established form and mandatory details, property rights that are exercised or transferred only upon its presentation.
A security is a document that grants certain rights to its owner. Therefore, it is worth noting that these rights are protected by the state and are specified in the main regulations that regulate processes related to securities. The list of these documents includes 39 Federal Law “On the Securities Market” dated April 22, 1996, 208 Federal Law “On Joint Stock Companies” dated December 26, 1995. and Chapter 7 of the Civil Code of the Russian Federation “Securities”. Accordingly, all the nuances associated with securities are spelled out in these legal documents.
Classification of securities
The classification of securities is quite diverse. First of all, it is possible to conditionally (since this division is not prescribed in the laws) distinguish between exchange-traded and over-the-counter securities - that is, not all securities can be bought/sold on the exchange. Moreover, even shares that are familiar to many are not always traded on the Moscow Exchange. About 300 shares of various companies are traded on the main Russian platform, and, naturally, there are much more joint-stock companies, and a significant part of them do not place shares on the stock exchange. But the main giants of Russian business are present at exchange trading. The same situation is with bonds - they can also be either exchange-traded or over-the-counter. Of course, over-the-counter stocks and bonds can also be bought/sold, but this is quite difficult. In addition, in such cases it will be a private transaction between buyer and seller, and in exchange transactions the exchange acts as a guarantor of its legality.
There are two types of securities: registered and bearer. Registered - those that contain information about their owner, which is recorded either in the register of owners or directly on the form itself. Moreover, in order to change the ownership of this type of securities, identification of their owner is necessary. In turn, what does “bearer” securities mean? The owner of such papers is the person who presented them. This means that the owner’s identification is not required to transfer ownership rights.
The main securities include:
· depositary receipts,
· bonds,
· bills,
· savings certificates,
· mortgages.
Shares, bonds and depositary receipts are traded on the Moscow Exchange. In turn, checks, mortgages and savings certificates do not qualify as exchange-traded securities.
Globally, securities are divided into two broad categories: equity and debt. Equity securities include securities that provide the right to control the fate of the issuer according to the share owned. The issuer is the organization that issued these securities, and the issue is the process of issuing them. Shares are classified as equity securities.
Debt securities are a document on the obligations of their issuer to pay their holder the appropriate amount or provide other assets in a certain quality and quantity. Debt securities include bonds - exchange-traded debt securities, and bills, savings certificates and checks can be classified as over-the-counter debt securities.
The term "check" means that the security is issued in paper or certificated form. There are also securities in book-entry form - existing in the form of corresponding entries in the register. Nowadays, stocks and bonds are traded on the stock exchange in book-entry form, and over-the-counter transactions are carried out through the execution of purchase and sale agreements, which serve as the basis for the transfer of ownership rights without direct transfer in paper form.
Main types of securities
Now that you have an idea of what securities are, let's talk in more detail about their main types, as well as the properties of each of them.
Stock. A share is an issue-grade security that evidences the investment of funds in the capital of a joint-stock company and secures the rights of its owner to receive part of the company’s profit in the form of , as well as to participate in management and part of the property remaining after the liquidation of the joint-stock company.
Since company profits are uneven (and distributed in the form of dividends), the value of shares can fluctuate greatly within even one year (this is called high volatility). Which, in turn, allows you to earn not only from receiving dividends (in current conditions, the dividend yield of shares averages 7-10% of their value), but also from the difference in buying and selling rates due to price fluctuations. Moreover, on the most liquid shares you can make money not only from an increase in their value, but also from a decrease. In this case, we are dealing with a so-called short position, which consists of taking shares from a broker, selling them, and then buying them cheaper and returning them to the broker, taking the financial difference. But it is worth considering that such transactions require more experience.
Shares, in turn, can be ordinary (ao - ordinary share, or “ordinary”) and preferred (ap, “prefs”). Ordinary shares carry a standard, legally defined function, and preferred shares do not provide their owners with the right to manage the company, but at the same time give a preemptive right to receive dividends. In addition, when a company is liquidated, the owners of preferred shares are reimbursed first, and only then the ordinary ones.
Rice. 1. Sberbank share price chart
Bonds. This is the name of an issue-grade security, which confirms that the holder has “loaned” the issuer, and therefore has the right to receive from the issuer within the prescribed period the par value of the paper (in the amount indicated in the documentation that accompanies the issue of the bond) and stated in it a percentage of this cost or other property equivalent. The bond may also provide for other property rights of its holder, if this does not contradict the legislation of the Russian Federation.
What do such securities provide? Bonds today represent an excellent alternative to bank deposits, often surpassing them in profitability and having a number of similar characteristics:
· finality: payments of the principal debt on bonds occur on the maturity date;
· interest payments: most bonds are coupon, meaning payments are made every six months or quarterly.
But among other things, bonds can be bought and sold on exchange trading (a deposit cannot be sold), and their volatility is much less than that of shares, which makes it possible to easily buy and sell these securities at approximately the same price, receiving This is money for the holding period. For those who want to invest periodically (from their salary) amounts of money in exchange-traded assets, bonds will be an excellent choice.
Rice. 2. VTB bond price chart BO-43
Bonds, in turn, are discount and coupon. In the case of discount securities, bonds are issued cheaper than they are repaid, without interim payments (rare in practice). Coupons are issued and redeemed at the same value, but intermediate payments (coupon payments) occur. In practice, most securities are coupons.
Coupons can be either constant or variable - that is, depend on any factors. At the same time, the specifics of their changes are spelled out in the accompanying documentation (decision on issue and prospectus).
There are several types of bonds traded on exchanges:
· government bonds (OFZ), the guarantor of payments for which is the state itself;
· municipal - bonds of various regions, federal districts, cities, and so on - extremely reliable securities that offer slightly higher returns than;
A check is a security containing an unconditional order from the drawer to the bank to pay the amount specified therein to the check holder
Three persons are involved in check relations - the drawer, the payer and the check holder (remitter).
The circle of these persons can be expanded as a result of the transfer of a check with endorsement or the provision of a guarantee of payment for the check (avaal)
A check drawer is a legal or natural person who has funds in the bank, which he has the right to dispose of by issuing checks. The drawer of the check cannot be the payer. Only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as the payer of a check. The holder of the check is a creditor to whom the payer has obligations, and in case of non-payment of the check, so does the drawer.
The basis for issuing a check is an agreement between the drawer and the payer (check agreement), according to which the latter undertakes to pay checks if he has funds in his account
Checks issued by banks must contain all the mandatory details established by the Civil Code, and may also have additional details determined by the purposes of their use. The form of the check is determined by the bank independently 3.7. Check 139 Types of checks vary depending on the payment term, order of ownership, etc. (Table 3.7.1),
Table 3.7.1. Classification of checks Classification characteristics Types of checks 1. Ownership procedure Personal
Warrant
To bearer 2. Territory National
CIS countries
International 3. Payment term 10 days; 20 days; 70 days 4. Guarantee of payment Validated Partially validated Unvalidated 5. By form of issue Paper 6. Transferability Endorsed Non-endorsed A check can be issued either to the bearer (bearer's check), or to the order of a specific person (order check), or to the name a certain person (personalized check). A check can be issued to the order or in the name of the drawer. If the check does not indicate that it is issued to an order or in the name of a specific person, the check is considered to be issued to bearer.
If possible, transfer to another person: endorsed and non-endorsed checks. A personal check is not transferable. The transfer of an order check is carried out by means of an endorsement on the back of the check-endorsement.
There are two types of endorsement: blank, personal, target and non-negotiable. The personal endorsement indicates the specific person to whom the check is transferred and the signature of the transferor. Blank endorsement - bearer, executed by the signature of the check holder. Purpose Endorsement: The holder of the check states on the reverse the purpose of giving the check to another person and limits the ability of the check to be cashed. Non-negotiable endorsement - an endorsement that limits or excludes the possibility of making claims on a check in the event of its non-payment; the check holder uses the words “without negotiability” in the text of the endorsement,
Depending on the territory on which checks are issued, they can be divided into national ones, which are issued on the territory of the state; CIS countries, issued on the territory of the CIS countries; international, issued on the territory of another state
The check must be presented for payment within the established time frame: within 10 days from the date of its issue, if the check is issued on the territory of the Russian Federation; within 20 days, if the check is issued on the territory of the CIS countries; 70 days if the check is issued in another state.
Cancellation of a check before the expiration of the period for its presentation is not permitted.
Payment by check can be guaranteed in whole or in part through Aval. Based on the guarantee of payment, checks are divided into validated, partially validated and non-validated. Guaranteed checks are provided with a guarantee mark - aval. The avalist (this can be any person except the payer) must indicate for whom he is vouching.
There are settlement and cash receipts. A settlement check is a check that is used to make non-cash payments. A cashier's check is a check that is used to receive cash.
The check can be crossed. This is a check, the front side of which is crossed out by two parallel lines. Crossing can be general or special. If the name of a credit institution is written between two parallel lines (special strikethrough), then this is a special crossing, and the check can only be paid to the named credit institution. A check on the front side of which has two parallel lines (a common strikethrough), regardless of whether they are drawn by the drawer or any of the check holders, can only be paid to a credit institution. This kind of crossing is common
Test 1, Choosing the correct answer
1. A written order from the drawer of the check to the bank to pay the recipient of the check the amount of money indicated in it is
a) check; b) bill
c) certificate of deposit,
2. The guarantee inscription on a check or bill of exchange is called
a) endorsement;
b) acceptance; c) aval
3. The payer of a check is always:
b) check recipient
c) drawer
4. The check is
a) a settlement document and a bank security at the same time;
b) capital security
c) investment security
5. A special feature of the check is
a) the possibility of repayment
b) the impossibility of purchasing it on the secondary market
c) the possibility of his discharge
6. Main functions of a check:
a) means of payment
b) means of receiving payment
c) means of receiving payment and medium of exchange
7. Check without indicating the name of the check holder
a) treated as a bearer check
b) is considered invalid
c) is considered as an order check,
8. During what period from the date of issue is the check valid according to the regulatory legal act of the Central Bank of the Russian Federation?
b) 10 days;
9. The payer of a check can be
a) exclusively banks
b) banks and professional participants in the securities market;
c) any commercial organizations, with the exception of production cooperatives
10. The cover of a check at the drawer's bank may be
a) only funds deposited by the drawer in a separate account
b) funds deposited by the drawer in a separate account, as well as funds in the corresponding account of the check drawer not exceeding the amount guaranteed by the bank in agreement with the drawer when issuing checks
c) funds deposited by the drawer in a separate account; funds in the relevant account of the drawer no more than the amount guaranteed
Chapter 3. Essence and content of certain types of securities
certified by the bank in agreement with the drawer when issuing checks; funds of a third party who has a current account with the payer bank for the check, indicated by the drawer of the check The form of the check is determined
a) the credit institution itself
b) Central Bank of the Russian Federation
c) Ministry of Finance of the Russian Federation. Participants in the check legal relationship are:
a) two persons: the drawer-bank and the check holder (commercial organization)
b) three persons: the drawer, the payer of the check (exclusively the bank) and the holder of the check
c) four persons: the issuing bank of the checks, the drawer of the check, the bank executing the obligation on the check, and the holder of the check
If at least one of the mandatory details established for a check in the Civil Code of the Russian Federation (with the exception of indicating the place of issue of the check) is missing, then this circumstance
a) invalidates the check
b) invalidates the civil obligation for which the check was issued
c) affects in the manner indicated in the above paragraphs.
A check can be written
a) to a specific person without any reservations;
b) to a certain person with the clause “to order” (order check) or with the clause “not to order” (personal check)
c) to a certain person with or without the “order” clause (order check); to a certain person with the clause “not to order” (personal check); to bearer with the entry “to bearer” (check to bearer)
Issuing a check
a) repays the monetary obligation in fulfillment of which it was issued
b) fails to repay the monetary obligation in fulfillment of which it was issued
c) extinguishes any civil obligation for which it was issued
16. The check must contain
a) name of the “check”, name of the payer and recipient of funds, indication of the currency of payment, indication of interest, indication of the date of drawing up of the check, indication of the check expiration date, signature of the drawer
b) the name of the “check”, an instruction to the payer to pay a certain amount of money, the name of the payer and an indication of the account number from which the payment should be made, an indication of the currency of payment, an indication of the date and place of drawing up the check, the signature of the drawer
c) the name “check”, an instruction to the payer to pay a certain amount of money, the name of the payer, the signatures of the drawer and the check holder
17. For non-payment of a check, the following are jointly and severally liable to the check holder:
a) drawer, payer, avalists, endorsers
b) drawer, avalists, endorsers; the payer is not liable to the check holder
c) payer, avalists, endorsers; the drawer is not liable to the check holder
18. The check avalist can be
a) any person
b) payer;
c) any person other than the payer
19. If a check is issued on the territory of the CIS countries, then it is payable within:
20. If a check is issued on the territory of another state, it is payable within
Test 2, Mismatch Elimination
1. Mandatory check details according to the civil legislation of the Russian Federation:
Chapter 3. Essence and content of certain types of securities
a) indication of interest;
b) an order to the payer to pay a certain amount of money;
c) the name of the payer and indication of the account from which the payment should be made;
d) indication of payment currency
e) indication of the date and place of drawing up of the check;
f) signature of the person who wrote the check - the drawer
g) name “check”
h) the name of the first purchaser of the check,
2. Payment check
a) personal check
b) collected check;
c) check of transfer;
d) deposit check;
e) crossed check;
f) endorsed check;
g) bearer's check;
h) revocable check,
3. Bank non-cash payments without the use of securities are settlements
a) payment orders
b) collection orders
c) under a letter of credit;
d) personal checks
d) order checks
e) bills
g) payment requests
h) certificates of deposit
4. Transactions with a check on the securities market are
a) release;
b) repayment
c) avalization;
d) consolidation
e) payment of security
g) receipt of insurance premiums
h) endorsement
5. Securities issued exclusively by banks are
a) bearer savings book
c)mortgage
d) certificate of deposit;
e) personalized savings book;
f) savings certificate;
g) bank guarantee
h) credit bank card
Test 3, Search for an alternative
Answer "Yes" or "No"
1. Is a security containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder?
2. Is a legal entity or individual who has funds in a bank, which he has the right to dispose of by issuing checks, a check holder?
3. Can an individual be a payer on a bill of exchange?
4. Does the check not require the payer's acceptance?
5. Can an individual act as a check drawer or check holder?
6. The drawer of the check cannot be the payer of the check?
7. Is the holder of a check a creditor to whom the payer is obliged, and in case of non-payment of a check, also the drawer?
8. Is the basis for issuing a check an agreement between the drawer and the payer?
9. Are the form of the check and the procedure for filling it out determined by law and the banking rules established in accordance with it?
10. Is a check that does not indicate the place of its drawing considered to be signed at the place of origin of the drawer?
11. If the check does not indicate that it is issued to an order or in the name of a specific person, is the check considered issued to bearer?
12. Is an endorsement that limits or excludes the possibility of making claims on a check if it is dishonored a special endorsement?
146_Chapter 3. The essence and content of certain types of securities 1 Check 1 Bank, where the drawer has funds that he has the right to dispose of by issuing checks 2 Check holder 2 A legal entity or individual who has funds in the bank, which he has the right to dispose of by issuing checks 3 Payer 3 A check that is transferred by simple delivery or presentation 4 Avalist 4 Creditor to whom the payer is obliged, and in case of non-payment of the check - also the drawer 5 Drawer 5 Endowment inscription on the check 6 Personalized check 6 A security containing an unconditional order of the drawer to the bank to make payment to the specified it contains the amount of the check to the holder 7 Order check 7 Check, the front side of which is crossed out by two parallel lines 8 Check to bearer 8 Person guaranteeing payment of the check 9 Endorsement 9 Check, which is issued in the name of a specific person without the right of transfer to other persons 10 Cross-over ek 10 A check that is issued to the order of a specific person with the right to transfer to other persons using an endorsement 13. Is an endorsement made by the payer invalid?