Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 90-024)
The purpose is to allow operators to use promissory notes and post-dated checks to liquidate their outstanding obligations with the Board, thereby facilitating payment without hampering their operations.
A promissory note is a written promise executed by a delinquent operator to settle his outstanding obligations with the Board within a given period of time.
A post-dated check is a check that has been issued but dated in advance and is attached to the promissory note for settling obligations.
Post-dated checks payable to the Board may be issued by PUV operators to settle outstanding accounts, provided that bounced checks must be paid including surcharges and penalties , and actions for issuing checks without sufficient funds may be taken.
One of the Board Members designated by the Chairman evaluates and accepts them, but if the amount exceeds P100,000, approval by the Chairman is required. In Regional Offices, Regional Managers have this authority with prior clearance from the Board if the amount exceeds P100,000.
Amounts exceeding P100,000 require additional approval—from the Chairman for the Board Members and prior clearance from the Board for Regional Managers—before accepting promissory notes and post-dated checks.
Post-dated checks shall be dated the 15th or 30th of the month for easier monitoring.
The post-dated checks are submitted to the Cashier for safekeeping before their due dates. The Cashier issues a provisional or temporary receipt to the operator and later issues Payment Order Slips or Official Receipts on the due dates.
The concerned operator must pay the amount plus surcharges and/or penalties, and the Board may take appropriate action against the operator for issuing a check without sufficient funds.
Operators may be allowed to make a promissory note only once per book account.
The Legal Division is informed so that appropriate legal actions may be taken against the delinquent operators.
The Cashier maintains a PDC Register with entries including date, name of operator, TR number, bank, check number, amount or number or date.
They may be acknowledged as received by indicating this on the duplicate of the operator's compromise letter or promissory note.