QuestionsQuestions (LTFRB MEMORANDUM CIRCULAR NO. 90-024)
It allows LTFRB to accept promissory notes and post-dated checks from PUV operators as a means of liquidating their outstanding unpaid obligations, encouraging faster settlement without unnecessarily hampering operations.
A PN is a written promise executed by a delinquent operator, committing to pay the operator’s outstanding obligations with the Board within a specified period.
A PDC is a check that has been issued but dated in advance (i.e., dated for future encashment).
The Circular explicitly allows LTFRB to take appropriate action against the operator for issuance of checks without sufficient funds, which may include legal remedies under applicable laws.
PNs and PDCs are evaluated by a designated Board Member; if the amount exceeds ₱100,000.00, the Chairman’s approval is required.
Regional Managers may evaluate and accept PNs and PDCs, but must first seek prior clearance from the Board when the amount exceeds ₱100,000.00.
PDCs should be dated either the 15th or 30th of the month.
After approval, the post-dated cheques must be submitted to the Cashier for safekeeping prior to their due dates.
Receipt must be properly acknowledged through the issuance of Payment Order Slips and/or Official Receipts, reflecting the number(s) of the temporary receipt(s) previously issued.
They may be acknowledged as duly received by indicating it on the duplicate of the concerned operator’s compromise letter/promissory note.
The Cashier must maintain a PDC Register with entries such as date, name of operator, TR number, bank, check number, check amount, and check date.
Only once per book account.
They shall be dealt with accordingly; specifically, the Legal Division shall be informed so that appropriate actions may be taken.
The Circular indicates that in case of failure to settle on due dates, the Legal Division should be informed so that appropriate actions can be pursued against the operator.