Bills of Credit
General provisions on cash and non-cash settlements
Payments in the United States are made by cash and non-cash payments.
Calculations involving citizens, not related to their entrepreneurial activities, can be made cash without a limit of the amount or in non-cash order. Calculations between legal entities or with the participation of citizens related to their business activities, as a general rule, in cashless order. Calculations may also be made between these persons in cash, but only in cases where the law does not provide otherwise (Article 861 of the Civil Code).
The law does not contain an exhaustive list of forms of cashless payments, that can be used by participants in property turnover, but is limited to the direct indication and regulation of the main ones: payment orders, letters of credit, checks, calculations for collection. The parties under the contract have the right to choose any of the forms of payment (for example, the calculation of a bill), but within the limits prescribed by law, banking rules and customs of business turnover (Article 862 of the Civil Code).
Cash and non-cash settlements
When calculating cash , there is no independent settlement obligation. The transfer of money usually represents the actions of the debtor in the execution of a corresponding monetary obligation that is part of a civil obligation on the transfer of goods, the performance of work or the provision of services, so at the present time the legal regulation of cash settlements in its civil law is limited only to the establishment of the maximum amount of payment in cash in relations between legal entities and business citizens.
By non-cash settlements are understood as settlements for civil transactions and other grounds (for example, on paying taxes and other mandatory payments to the budget and extra-budgetary funds) using cash balances on bank accounts. The essence of the non-cash form of settlements is that instead of transferring cash, the corresponding sums of money are written off or credited to the client's account.
The execution of settlement operations by banks is carried out in compliance with the general rules relating to the performance of the bank account agreement. Non-cash settlements are made on the basis of documents of the established form.
Four forms of non-cash payments: 1) are provided for and directly regulated in the Civil Code by 1) payment orders; 2) under the letter of credit; 3) for collection; 4) checks.
Settlements by payment orders (bank transfer)
This form of non-cash payments is most often used in property turnover. In accordance with clause 1 of Art. 863 CC in the calculation of payment orders, the bank undertakes, on behalf of the payer, to transfer a certain amount of money to the account of the payer specified by the payer of the person in that bank or in another bank, at the expense of the funds on his account, in the time prescribed by law or established in accordance with it if the shorter the term is not stipulated by the bank account agreement or is not determined by the customs of business turnover applied in banking practice.
According to paragraph 1 of Art. 865 of the Civil Code execution of the payment order is that the bank accepting it is obliged to transfer the corresponding monetary sum to the beneficiary's bank for crediting it to the account specified in the account. Direct transfer of the amount of money on behalf of the client by the bank of the recipient of the bank that serves it is possible only when these banks link correspondent relations. In other cases, the bank receiving the payment order has the right to draw other banks to perform operations for transferring funds to the account specified in the client's instruction (clause 2, article 865 of the Civil Code). At the same time, term, if the shorter period is not stipulated by the bank account agreement or is not determined by the customs of the business turnover applied in banking practice (n 1 Article 863 of the Civil Code). This period is calculated from the moment the bank receives the payment order and before the transfer of the amount of money to be transferred to the account of the recipient of funds.
Currently, the timing of non-cash payments is determined by Federal Law No. 161-FZ of June 27, 2011, "On the National Payment System." In accordance with Part 5 of Art. 5 of this Law, the transfer of funds, with the exception of the transfer of electronic funds, is performed within no more than three business days starting from the day of writing-off of funds from the payer's bank account or from the day the payer provides cash in order to transfer money without opening a bank account. The transfer of electronic funds is carried out immediately after the operator accepts electronic money orders of the client (part 11, article 7, that the same Law).
The rules governing settlement of payment orders are applied not only in the relationship between the bank and the account holder in this bank. The order for the transfer of funds can be accepted by the bank and from a person with whom there is no bank account agreement. In doing so, it is necessary to be guided by the norms set out in § 2, Ch. 46 CC, unless otherwise provided by law, issued in accordance with banking rules or does not stem from the substance of these relations (paragraph 2 of Article 863 GK).
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