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CHECK ACT

Act No. 1002, Jan. 20, 1962

Amended by Act No. 5010, Dec. 6, 1995

Act No. 8440, May 17, 2007

Act No. 10197, Mar. 31, 2010

CHAPTER I THE ISSUE AND FORM OF CHECK
 Article 1 (Requirements for Check)
A check shall include the following details:
1. The word "check" inserted in the main body of the instrument and expressed in the language employed in drawing up the instrument;
2. An unconditional order to pay a determinate sum of money;
3. The name of a payee;
4. The place where payment is to be made;
5. When and where the check is issued;
6. The name and seal or signature and seal of a drawer.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 2 (Defects in Requirements)
An instrument in which requirements under Article 1 are not specified shall be invalid as a check: Provided, That this shall not apply to the following cases:
1. In the absence of the expression of the place of payment: The place specified beside the name of the drawee shall be deemed the place of payment. If several places are specified beside the name of the drawee, the check shall be deemed made payable to the first of those places;
2. In the absence of the expression under subparagraph 1 and of other indications: A check shall be payable at the place where it is drawn;
3. Where a check does not specify the place at which it was drawn: A check shall be deemed to have been drawn in the place specified beside the name of the drawer.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 3 (Necessity of Available Funds and Check Agreement)
A check shall be drawn on a bank holding funds at the disposal of the drawer as at the time of the presentment thereof and only in conformity with an agreement, express or implied, whereby the drawer is entitled to dispose of those funds by check. Nevertheless, even if these provisions are not complied with, the instrument shall still be valid as a check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 4 (Prohibition of Acceptance)
No check shall be accepted. An expression of acceptance on a check shall be disregarded.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 5 (Designation of Payee)
(1) A check may be made payable by any of the following methods:
1. To the named payee with or without the words "Pay to the order of";
2. To the named payee with the words "Not to order" or any equivalent words;
3. To bearer.
(2) An order check with the word "or to bearer", or any equivalent word shall be deemed a bearer check.
(3) A check which does not specify a payee shall be deemed to be a bearer check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 6 (Check Payable to Drawer's Order, for Account of Third Person, or for Account of Drawer Himself/Herself)
(1) A check may be drawn payable upon drawer's order.
(2) A check may be drawn for account of a third person.
(3) A check may be drawn on the drawer himself/herself.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 7 (Stipulation of Interest)
Any stipulation concerning interest embodied in a check shall be deemed unwritten.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 8 (Payment at Domicile of Third Person)
A check may be payable at the domicile of a third person either in the locality where the drawee has his/her domicile or in another locality. However, such third person shall be a bank.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 9 (Discrepancies regarding Sum Payable)
(1) Where the sum payable under a check is expressed in words and also in figures, and where there is a discrepancy between the two, the sum denoted by words shall be the amount payable.
(2) Where the sum payable under a check is expressed more than once in words or more than once in figures, and where any discrepancy exists, the smaller shall be the sum payable.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 10 (Independent Nature of Obligations of Check)
Even if a check bears the name and seal or signature of any person falling under any of the following subparagraphs, the obligation of any other person who has signed and sealed it shall be invalid:
1. Name and seal or signature of a person incapable of binding himself/herself by a check;
2. Forged name and seal or signature;
3. Name and seal or signature of a fictitious person;
4. Names and seals or signatures which, for other reasons, cannot bind persons who wrote their names and affixed their seals or those who wrote their signatures on the check or on whose behalf the names, seals, or signatures were written thereon.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 11 (Name and Seal or Signature by Unauthorized Representative)
Whoever writes his/her name and affixes his/her seal or wrote his/her signature on a check as representing a person for whom he/she has no power to act shall be subject to obligations relating to the check. Where such person pays the amount of check, he/she shall have the same rights as the person for whom he/she purported to act. The same shall apply to a representative who has exceeded his/her powers.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 12 (Liability of Drawer)
A drawer shall guarantee payment. Any stipulation by which the drawer releases himself/herself from a payment guarantee shall be deemed unwritten.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 13 (Blank Checks)
If a check issued incomplete is otherwise complemented with information that is different from the agreement already entered into, the nonobservance of the agreement shall not be held against the holder. However, the same shall not apply, if the holder has acquired the check in bad faith or by gross negligence.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER II TRANSFER
 Article 14 (Check to Order)
(1) A check made payable to the named payee with or without the words "Pay to the order of" may be transferred by means of endorsement.
(2) An order check with the words "Not to order" or equivalent words may only be transferred according to the form, and with the effect of an ordinary assignment of nominative claim.
(3) A check may be endorsed even to the drawer or to other parties liable on the check. Such persons may re-endorse the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 15 (Requisites of Endorsement)
(1) An endorsement shall be unconditional. Any condition to which it is subject shall be deemed unwritten.
(2) A partial endorsement shall be null and void.
(3) An endorsement by the drawee shall be also null and void.
(4) An endorsement of "to bearer" shall have the same effect as an endorsement in blank.
(5) An endorsement to the drawee shall have the effect only of a receipt. However, the same shall apply where the drawee has several business establishments and the endorsement is made in favour of a business establishment, other than that on which the check has been drawn.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 16 (Form of Endorsement)
(1) An endorsement shall be written on the check or on a slip affixed thereto, and the endorser shall write his/her name and affix his/her seal or sign on it.
(2) The endorsement may leave the beneficiary unspecified or may consist simply of the name and seal or signature and seal of the endorser (endorsement in blank). In the latter case, to be valid, the endorsement shall be written on the back of the check or on a slip attached thereto.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 17 (Effect of Endorsement Transferring All Rights)
(1) An endorsement shall transfer all the rights arising out of a check.
(2) If the endorsement is in blank, the holder may conduct the following activities:
1. Filling in the blank either with his/her own name or with the name of another person;
2. Re-endorsing the check in blank or to some other person;
3. Transferring the check to a third person without filling in the blank and without endorsing it.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 18 (Effect of Endorsement Guaranteeing Payment)
(1) In the absence of any contrary stipulation, the endorser shall guarantee payment.
(2) The endorser may prohibit any further endorsement following his/her endorsement. In such cases, the endorser shall not be liable to guarantee as to the persons who subsequently endorse the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 19 (Effect of Endorsement Establishing Title)
The possessor of a check transferable by endorsement shall be deemed a holder in due course if the possessor establishes his/her title to the check through an uninterrupted series of endorsements. The same shall also apply where the last endorsement is in blank. With regard to a series of endorsements, cancelled endorsements shall be deemed unwritten. When an endorsement in blank is followed by another endorsement, the person who has signed the last endorsement shall be deemed to have acquired the check by the endorsement in blank.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 20 (Endorsement on Bearer Check)
An endorsement on a bearer check shall render the endorser liable in accordance with the provisions governing the right of recourse. However, this shall not convert the instrument with words "Pay to the order of".
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 21 (Check Acquired in Good Faith)
Where any person has been dispossessed of a check for any reason, the holder of the check shall not be bound to relinquish the check, if the check is a bearer check or the holder of a check transferable by endorsement establishes his/her title pursuant to Article 19. However, the same shall not apply where the holder has acquired it in bad faith or by gross negligence.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 22 (Restriction against Personal Defenses)
Persons sued on a check shall not set up against the holder defenses founded on their personal relations with the drawer or with previous holders. However, the same shall not apply where the holder has acquired the check when the holder was aware that it would be detrimental to the debtor.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 23 (Endorsement for Collection)
(1) Where an endorsement includes any of the following phrases, the holder may exercise all rights arising out of the check. However, the holder can only endorse it in his/her capacity as agent:
1. Value in collection;
2. For collection;
3. By procuration;
4. Other phrases implying a simple mandate.
(2) In cases under paragraph (1), liable parties can only set up against the holder defenses which could be set up against the endorser.
(3) The mandate granted by an endorsement by procuration shall not terminate by reason of the death of the party giving the mandate or by reason of his/her becoming legally incapable.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 24 (Endorsement after Maturity)
(1) An endorsement after the protest or an equivalent declaration having the same effect is prepared, or one made after the limit of time for presentment expires shall be effective only as an ordinary assignment.
(2) An undated endorsement shall be presumed to have been placed on a check before a protest or an equivalent declaration having the same effect is prepared, or before the limit of time for presentment expires.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER III "AVALS"
 Article 25 (Availability of "Aval")
(1) Payment of a check may be guaranteed by an "aval" as to the whole or part of its amount.
(2) A guarantee under paragraph (1) may be given by a third person, other than the drawee. The same shall also apply to a person who has written his/her name and affixed his/her seal or put his/her signature on the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 26 (Form of "Aval")
(1) The "aval" shall be given either on the check itself or on an "allonge" attached thereto.
(2) guarantee shall be expressed by the word "good as aval" or by any other equivalent formula, and the giver of the "aval" shall write his/her name and affix his/her seal or write his/her signature on the check.
(3) The "aval" shall be deemed to be constituted by the mere name and seal or signature of the giver of the "aval" placed on the face of the check. However, the same shall not apply where the name an seal or signature of the drawer are written or placed on the check.
(4) An "aval" shall specify for whose account it is given. In default of this, it shall be deemed to be given for the drawer.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 27 (Effect of "Aval")
(1) The giver of an "aval" shall be bound in the same manner as the person for whom the giver has become guarantor.
(2) His/her undertaking shall be valid even when the liability which he/she has guaranteed is inoperative for any reason other than defect of form.
(3) The giver of "aval" shall have, when paying the check, the rights arising out of the check against the person guaranteed and against those who are liable to the latter on the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER IV PRESENTMENT AND PAYMENT
 Article 28 (Payment at Sight of Check)
(1) A check shall be payable at sight. Any contrary stipulation shall be deemed unwritten.
(2) A check presented for payment before the stipulated date of issue shall be payable on the day of presentment.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 29 (Limit of Time for Presentment for Payment)
(1) A check payable in the country in which it was issued shall be presented for payment within ten days.
(2) Where a check is issued in a country, other than the country in which it is payable, the check shall be presented within 20 days, if the place of payment are situated in the same continent; and 70 days, if on a different continent.
(3) For the purposes of paragraph (2), checks issued in a European country and payable in a country bordering on the Mediterranean or vice versa shall be deemed to have been issued and payable in the same continent.
(4) The periods mentioned in paragraphs (1) through (3) shall begin to run from the date stipulated on the check as the date of issue.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 30 (Issue between Places Having Different Calendars)
When a check is drawn in one place and is payable in another place having a different calendar, the date of issue shall be construed as being the corresponding day on the calendar of the place of payment.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 31 (Presentment at Clearing-house)
(1) Presentment of a check at a clearing-house shall be equivalent to presentment for payment.
(2) Presentment for payment prescribed in paragraph (1) is deemed complete when a bank entrusted with collection of a check by a holder (hereafter referred to as "presenting bank" in Article 35 (2) and subparagraph 2 of Article 39) electronically prepare items to be filled out on a check in the form of electronic information, and such information is transferred to a clearing-house and then input into information processing system of such clearing-house.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 32 (Countermand of Payment Order)
(1) The countermand of a payment order in relation to a check shall take effect only after the limit of time for presentment expires.
(2) If a payment order in relation to a check has not been countermanded, the drawee may pay it even after the limit of time for presentment expires.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 33 (Death or Incapacity of Drawer)
Neither the death nor incapacity of the drawer after the issuance of a check shall have any effect regarding the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 34 (Exchangeability of Way Bill and Partial Payment)
(1) The drawee who pays a check may require that it shall be given up to him/her receipted by the holder.
(2) The holder shall not refuse partial payment.
(3) In cases of partial payment, the drawee may require that acknowledgement of payment shall be written on the check, and a receipt therefor shall be given up to him/her.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 35 (Liability of Drawee to Verify)
(1) The drawee who pays a check transferable by endorsement shall be liable to verify the regularity of the series of endorsements, but not the name and seal or signature of the endorsers.
(2) In cases of presentment for payment pursuant to Article 31 (2), a drawee may entrust a presenting bank to verify the regularity of the series of endorsements under paragraph (1).
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 36 (Currency in which Drawee is to Pay)
(1) When a check is drawn payable in a currency other than that of the place of payment, the sum payable may, within the limit of time for presentment of the check, be paid in the currency of the country according to its value on the date of payment. If payment has not been made upon presentment, the holder may, at his/her option, require that the amount of the check be paid in the currency of the country according to the rate on the day of presentment or on the day of payment.
(2) The usages of the place of payment shall determine the value of foreign currency. Nevertheless, the drawer may stipulate that the sum payable shall be calculated according to a rate expressed in the check.
(3) Paragraphs (1) and (2) shall not apply where the drawer has stipulated that payment must be made in a certain specified currency (stipulation for effective payment in a foreign currency).
(4) If the amount of the check is specified in a currency having the same denomination, but a different value in the country of issue and the country of payment, reference shall be deemed based on the currency of the place of payment.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER V CROSSED CHECKS
 Article 37 (Kind and Form of Crossing)
(1) The drawer or holder of a check may cross the check with lines. The line shall have effects prescribed in Article 38.
(2) The crossing shall take the form of two parallel lines drawn on the face of the check. The crossing may be general or special.
(3) The crossing shall be general if it consists of the two lines only, or if the term "bank" or other equivalent expression is inserted between the line, and it shall be special if the name of a bank is written between the lines.
(4) A general crossing may be converted into a special crossing, but a special crossing shall not be converted into a general crossing.
(5) The effacement of a crossing or the name of the designated bank shall be disregarded.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 38 (Effects of Crossing)
(1) The drawee of a check generally crossed may pay it only to a bank or to a customer of the drawee.
(2) The drawee of a check specially crossed may pay it to the designated bank, or if the designated bank is the drawee, to its customers only. Nevertheless the designated bank may procure the check to be collected by another bank.
(3) A bank may acquire a crossed check from one of its customers or from another bank only. The bank shall not collect the crossed check for the account of persons other than the foregoing.
(4) The drawee shall not pay a check bearing several special crossings. However, the same shall not apply where there are two crossings, one of which is for collection through a clearing-house.
(5) A drawee or bank who fails to observe any of paragraphs (1) through (4) shall be liable for resulting damage, up to the amount of the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER VI RECOURSE AGAINST NON-PAYMENT
 Article 39 (Requisites of Recourse)
The holder may exercise a right of recourse against the endorsers, the drawer and other parties liable, if the check presented within due date is not paid, and if the holder evidences the refusal by any of the following means:
1. A notarized certificate (protest);
2. A declaration dated and written by the drawee (in cases under Article 31 (2), a presenting bank entrusted by a drawee) on the check and specifying the date of presentment;
3. A dated declaration prepared by a clearing-house, evidencing that the check has been presented by the due date, but has not been paid.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 40 (Time Limit for Drawing up Protest, etc.)
(1) A protest or the equivalent declaration having the same effect shall be prepared before the time limit for presentment expires.
(2) If the check is presented on the last day of the time limit, the protest or the equivalent declaration having the same effect may be drawn up on the first business day which follows.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 41 (Notice of Non-Payment)
(1) The holder shall give notice of non-payment to his/her endorser and to the drawer within four business days which follow any day prescribed by the following subparagraphs, and every endorser shall, within two business days following the day on which he/she receives notice, inform his/her endorser of the notice received, stating the names and addresses of those who have given the previous notices and so on through the series until the drawer is reached. The period shall run from the date each notice is received:
1. The date on which the protest is drawn up;
2. The date on which an equivalent declaration having the same effect as the protest is prepared;
3. Where a stipulation "retour sans frois" is written, the date on which a check is presented.
(2) When notice is given, as prescribed by paragraph (1), to a person who has written his/her name and affixed his/her seal or written his/her signature on a check, the same notice shall be given to his/her avaliseur within the same time limit .
(3) Where an endorser either has not specified his/her address or has specified it in an illegible manner, it is sufficient that notice should be given to the person immediately proceeding the endorser.
(4) A person liable to give notice may give it by any means. The person may also give notice simply by returning the check.
(5) A person liable to give notice shall prove that he/she has given notice within the due time. This time limit shall be regarded as having been observed if a letter giving the notice has been posted within the prescribed time.
(6) Even a person who fails to give notice within the period under paragraph (5) shall not forfeit his/her right of recourse. However, where any injury is caused by his/her negligence, such person shall be liable to compensate for the injury up to the value of the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 42 (Release from Drawing up of Protest)
(1) The drawer, an endorser or a person guaranteeing payment by aval may release the holder from the obligation to draw up a protest or an equivalent declaration having the same effect by writing any of the following stipulations, and writing his/her name and affixing his/her seal, or writing a signature, in order to exercise his/her right of recourse:
1. "Retours sans frais";
2. "Sans protet";
3. Other terms equivalent to those under subparagraphs 1 and 2.
(2) Notwithstanding the stipulation under paragraph (1), the holder shall not be released from the obligation to present the check within the prescribed time, or to give notices. The burden of proving the non-observance of the time limit shall lie on a person who seeks to set it up against the holder.
(3) If the stipulation under paragraph (1) is written by the drawer, it shall be operative in respect of all liable persons, and if the stipulation is written by an endorser or an avaliseur, it shall be operative in respect of such endorser or avaliseur only. If the holder has the protest or an equivalent declaration having the same effect drawn up despite the stipulation written by the drawer, the holder shall bear the expenses thereof; if the stipulation is written by an endorser or avaliseur, the costs of the protest or equivalent declaration, if drawn up, may be recovered from all the persons liable on the check.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 43 (Joint Liabilities of Parties)
(1) All the parties liable on the check shall be jointly and severally liable to the holder.
(2) The holder shall have the right of proceeding against all persons under paragraph (1), individually, collectively, or wholly, notwithstanding the order by which they bear the obligation.
(3) Where a person liable on the check redeems the check, the person shall have the same right as that of the holder under paragraph (2),
(4) No proceedings against one of the parties liable on a check shall influence proceedings against the others. The same shall apply to persons subsequent to the party first proceeded against.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 44 (Amount for Recourse by Holder)
The holder may recover the following amount from a person against whom he/she exercises a right of recourse:
1. The amount of unpaid check;
2. Interest calculated at the rate of six percent per annum from the date of presentment;
3. The expenses of preparing a protest or an equivalent declaration having the same effect, and of giving notices and other expenses.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 45 (Amount for Recourse by Party)
A party who redeems a check can recover the following amount from the parties liable to him/her:
1. The entire sum which he/she has paid;
2. Interest on the sum under paragraph (1) calculated at the rate of six percent per annum starting from the date when he/she made payment;
3. Any expense which he/she has incurred.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 46 (Right of Party Liable for Recourse)
(1) Every liable party who has received or is to receive a claim for recourse, may require, in relation to the payment and recourse, that the check shall be given up to him/her with the protest or an equivalent declaration having the same effect and a receipted account.
(2) Every endorser who has redeemed a check may cancel his/her own endorsement and those of subsequent endorsers.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 47 (Vis Major and Extension of Time Limit)
(1) If presentment of a check or preparation of the protest or the equivalent declaration within the due time limit is prevented by an insurmountable obstacle (referring to legal prohibition by any Act or subordinate statute or other cases of vis major), the time limit shall be extended.
(2) In the event of vis major, the holder shall give notice, without delay, to his/her endorser and mention this notice on the check or on an allonge, on which he/she shall date and write his/her name and affix his/her seal or write his/her signature. Article 41 shall apply mutatis mutandis in other respects.
(3) When vis major has terminated, the holder shall, without delay, present the check for payment and, if necessary, he/she shall have the protest or an equivalent declaration having the same effect drawn up.
(4) If vis major continues to operate beyond 15 days after the date on which cases of vis major under paragraph (2) are notified, the right of recourse, even in cases where such notification is made before the time limit for presentment expires, may be exercised without the need to present a check, or to prepare a protest or an equivalent declaration having the same effect.
(5) Facts which are purely personal to a holder or to a person entrusted by a holder to present the check, or to draw up the protest or the equivalent declaration having the same effect, shall not be deemed to constitute cases of vis major.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER VII DUPLICATES
 Article 48 (Condition of Issuing Duplicates)
With the exception of bearer checks, the following checks may be issued in several exact duplicates. Where checks are issued in several duplicates, the instrument shall be numbered in the main body of the instrument itself, and where it is not numbered, the several duplicates shall be deemed a separate check:
1. A check issued in one country and payable in other countries or on the overseas territories of the country of issue;
2. A check issued on the overseas territories of one country, and payable in the country;
3. A check issued on the overseas territories of one country, and payable in the same overseas continent;
4. A check issued on the overseas territories of one country, and payable in the overseas continent of the country.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 49 (Effect of Duplicates)
(1) If payment is made on one counterpart of a duplicate, it shall operate as a discharge, even if there is no stipulation that such payment annuls the effect of other duplicates.
(2) An endorser who has transferred duplicates to different persons, as well as a subsequent endorser, shall be liable on all duplicates bearing his/her name and seal or signature, which have not been returned.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER VIII ALTERATIONS
 Article 50 (Alteration and Liability of Parties relating to Check)
In cases of the alteration of the text of a check, parties who have written their names and affixed their seals or signed subsequent to the alteration shall be liable according to the terms of the altered text, and parties who have written their names and affixed their seals or signed before the alteration shall be liable according to the terms of the original text.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER IX PRESCRIPTION OF ACTIONS
 Article 51 (Period of Prescription)
(1) A right of recourse by the holder against the endorsers, drawer and other liable parties shall lapse by prescription if the right is not exercised within six months from the time limit for presentment expires.
(2) The right of recourse by different liable parties for the payment of a check against other liable parties shall lapse by prescription if the right is not exercised within six months from the date on which the liable parties have redeemed the check or the date on which they were sued thereon.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 52 (Interruption of Period of Prescription)
Interruption of a period of prescription shall be only effective against the person in respect of whom the cause of interruption has taken place.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER X CERTIFICATION
 Article 53 (Form of Certification)
(1) The drawee may certify the payment of a check.
(2) A certification of payment shall be expressed by the words "certification of payment" or by any word indicating an engagement to make payment on the face of the check, dated, and written with name and sealed, or signed by the drawee.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 54 (Requisites of Certification of Payment)
(1) The certification of payment shall be unconditional.
(2) Any modification by a certification into the tenor of the check shall be deemed unwritten.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 55 (Effect of Certification of Payment)
(1) A drawee who has certified the payment shall be liable to make payment only when the check is presented before the time limit for presentment expires.
(2) In cases of refusal of payment under paragraph (1), the holder of a check shall prove that he/she has presented the check in accordance with Article 39.
(3) Articles 44 and 45 shall apply to cases under paragraph (2).
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 56 (Certification and Liabilities of Parties)
The liabilities of a drawer and other liable parties on a check shall not be discharged by reason of certification of payment.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 57 (Vis Major and Extension of Time Limit)
Article 47 shall apply mutatis mutandis to the exercise of rights against a drawee who has certified payment.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 58 (Prescription of Liabilities of Guarantor)
A claim on a check against the drawee who has certified payment shall lapse by prescription if it is not exercised within one year from the date the time limit for presentment expires.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
CHAPTER ? GENERAL PROVISIONS
 Article 59 (Definition of Bank)
"Bank" under this Act includes persons or institutions deemed equivalent thereto in accordance with Acts or subordinate statutes.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 60 (Acts as to Checks and Holiday)
(1) A check can be only presented and a protest can be only drawn up on a business day.
(2) When the last day of the time limit prescribed by Acts and subordinate statutes for performing acts relating to a check and particularly for presentment of a check, or for preparation of a protest or an equivalent declaration having the same effect, is a legal holiday, the time limit shall be extended until the first business day which follows the date the time limit expires. Intermediate holidays shall be included in computing time limit.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 61 (Day of Commencement)
The time limit prescribed in this Act shall not include the day on which the period commences.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
 Article 62 (Days of Grace)
No days of grace, whether legal or judicial, shall be permitted.
[This Article Wholly Amended by Act No. 10197, Mar. 31, 2010]
ADDENDA
Article 63 (Claims for Reimbursement of Benefits)
Even where rights arising out of a check have been extinguished on account of any failure to take the requisite action or of limitation of actions, the holder may claim reimbursement against the drawer, endorser or drawee who has certified payment to the extent of the benefit received by the latter.
Article 64 (Interruption of Period of Limitation by Giving Notice of Action)
(1) The period of limitation of any claim on a check by an endorser against another endorser and against the drawer shall, where an action has been brought against the endorser, be interrupted by his giving notice of such action to the former.
(2) Period of limitation which has been interrupted in accordance with the preceding paragraph shall begin to run anew from the time when the decision thereon became final and conclusive.
Article 65 (Check for "Payable in Account")
A check drawn abroad and payable in Korea, for which payment in cash has been forbidden by the drawer or holder by writing on the face of the instrument the words "payable in account" or similar words shall be treated as a generally crossed check.
Article 66 (Definition of Holiday)
The term "holiday" within the meaning of this Act comprises national holidays and public holidays, Sundays and other general holidays.
Article 67 (Penal Provisions against Illegal Issuance)
Any drawer of a check who contravenes Article 3 shall be punished by a fine for negligence not exceeding 500 thousand hwan.
Article 68 (Checks Issued Prior to Enforcement of This Act)
With regard to checks issued before this Act enters into force, the former provisions shall remain applicable.
Article 69 (Designation of Clearing-house)
The clearing-house referred to in Article 31 shall be specified by the Minister of Justice.
Article 70 (Drawing up of Protest)
Matters related to the drawing up of protests shall be prescribed by Presidential Decree. <Amended by Act No. 5010, Dec. 6, 1995>
Article 71 (Enforcement Date, Repeal of Old Act)
(1) This Act shall enter into force on January 1, 1963.
(2) The Act on Checks, established in Korea under Article 1 of the Chosun Civil Affairs Decree, shall remain in force until this Act becomes effective.
ADDENDUM<Act No. 5010, Dec. 6, 1995>
This Act shall enter into force on the date of its promulgation.
ADDENDUM<Act No. 8440, May 17, 2007>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM<Act No. 10197, Mar. 31, 2010>
This Act shall enter into force on the date of its promulgation.