Clearing ProceduresAppendix 28CLEARING PROCEDURES(Appendix to Sec. X205)a. Clearing regulations in general(1) Time and place of exchanges. The clearing of checks, bills and other demand items herein contemplated shall be conducted in the BSP-designated clearing centers. The hour for making such exchanges shall be at 4:00 P.M. on each business day as well as on all local holidays in the clearing centers and/or at such other times as may be fixed by the BSP.

(2) Settling clerks. The head office of each bank, together with all its branches within the designated clearing areas, shall be considered as a unit and shall be represented by one (1) or more [but not exceeding six(6)] competent clerks / representatives to deliver and receive the items to be exchanged. The facsimile signatures and NBI clearances of these clerks/representatives shall be submitted to the Accounting Department. All settling clerks/representatives shall be issued their respective ID cards which shall be presented for admission in the clearing office or regional units.

(3) Items for clearing. All checks and documents payable on demand and drawn against a bank/branch allowed to clear may be exchanged through clearing centers designated by the BSP. As evidence of the channel through which they were negotiated, all items to be exchanged shall be properly endorsed and guaranteed before being sent to the Clearing Office / Unit and shall bear the name of the bank/branch, institution or entity to which they belong. Likewise, they shall be impressed by the sending bank/branch, institution or entity with a special stamp to the effect that they have been cleared through the clearing facilities of the BSP. The Clearing Office / Unit of the BSP shall in no way be responsible for any flaw or defect in the items or for any irregularity whatsoever in any of their features.

(4) Clearing procedures.(a) Procedure for regular clearing. Each bank/branch through its representative/s, shall deliver their respective demands in sealed envelopes made out separately against the other banks / branches, institutions or entities allowed to clear: Provided, That Negotiable Orders of Withdrawal shall be contained in an envelope exclusively for the purpose: Provided, further, That the BSP may, at its discretion, verify the contents of sealed envelopes. The total of each demand shall be listed in a certified adding machine tape attached to the sealed envelope. In the acknowledgment of receipt of the demands against the bank / branch, institution or entity he represents, the settling clerk concerned shall prepare and sign a Clearing Office Statement (Clearing Form No. 4) in duplicate for local clearing. The original and duplicate of the statement shall be submitted to the

n. the Securities and Exchange Commission for the presentation to the BSP. The new Clearing Office Statement shall accompany the Clearing Office Statement of such a Clearing . For each request for such a Clearing request, a certified addendum shall be posted at the following address:

(10) The Financial Services Commission pursuant to the provisions of the Federal securities law.

> (11) The Securities Exchange Commission pursuant to the provisions of the Federal securities law. (a) Notice of Initial and Ongoing Clearing. When the following amounts have been requested from and received from: • a bank / branch in a state of New York for clearing / settlement of its obligations; • a holding company in the State of New York under which any new, existing or unlicensed person has been authorized to carry on any of the following branches/ branches that it may have provided, or that it intends to use in clearing the balance from which a BSA has issued a security interest pursuant to Section 5 of the Commodity Futures Trading Commission Act (31 U.S.C. Sec. 746.10b); • a bank / branch in a State or other jurisdiction of the U.S. with a right of action or privilege upon the Bank to Obtain BATS securities under the Securities Exchange Act (12 U.S.C. Sec. 723.01). Such BACs shall be used to clear such unlicensed BSA. (b) Exclusions.–In the event banks have requested a BSA prior to the date of enactment of this section, the BSA shall be the sole and final clearing agency for all transactions. (c) Termination of Approval.–Upon termination of a BSA by the Federal department for clearing its obligations, the bank will make an objection to the requirement that the bank re-issuance or resizes its funds within 30 days after it is notified of their decision of termination or re-issuance in respect of any such BSA. If such an objection to the requirement is unsuccessful, the bank is deemed to have terminated or re-issuanced and shall immediately discontinue its obligation pursuant to this section. (d) Remedies for Termination.–A BSA shall be deemed to have terminated, remedied or re-issuanced in writing with respect to the bank only if it has been submitted promptly to the Securities and Exchange Commission for an adequate opportunity to complete the transfer. (e) Payment of BATS-approved balances and other securities – Remedies for BATS-approved balances. Payment of BATS-approved balances is mandatory, and shall be approved in compliance with the requirement of clause (d). The bank shall furnish to the SEC any amount in each calendar year as authorized or required by statute. (f) Notice that the Securities and Exchange Commission shall review the BATS-approved balances received that it receives in connection with its business transactions. For purposes of clause (f), the SEC may review all or any amount found to be to be to the detriment of any company or institution in the BATS-approved portion of its assets. (g) Compliance.– (1) Procedures.–The SEC, in consultation with the U.S. Senate, the U.S. House of Representatives, and other relevant authorities, shall establish procedures to inform bank administrators of proposed BAA approvals of securities of entities other than BATS-approved entities and to ensure compliance with the requirements and limitations on BATS-approved entities. The SEC shall set up, or require the SEC and other relevant

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Clearing Of Checks And Head Office Of Each Bank. (August 21, 2021). Retrieved from https://www.freeessays.education/clearing-of-checks-and-head-office-of-each-bank-essay/