Using Promissory Notes and Checks for Payments

Promissory Note (PN): A written promise by a delinquent operator to settle outstanding obligations within a specified period.
Post-dated Check (PDC): A check issued with a future date, used in conjunction with a promissory note.

PUV operators may issue PDCs payable to the LTFRB to settle unpaid accounts.
If a PDC bounces, the operator must pay the amount plus surcharges and/or penalties.
The Board may take appropriate legal actions against operators who issue checks without sufficient funds.

Acceptance and evaluation shall be done by a Board Member designated by the Chairman.
For obligations exceeding PHP 100,000.00, approval of the Chairman is required.
In Regional Offices, Regional Managers can evaluate and accept PNs and PDCs; however, amounts over PHP 100,000.00 require prior clearance from the Board.

PDC dates shall be set on the 15th or 30th of the month to facilitate monitoring.
After approval, PDCs shall be submitted to the Cashier for safekeeping before due dates.
The Cashier issues a Provisional or Temporary Receipt (TR) to the operator upon safekeeping.
Upon collection on due dates, payments are acknowledged via Payment Order Slips and/or Official Receipts indicating the corresponding TR numbers.
In absence of provisional receipts, receipt of PDCs may be acknowledged on duplicate copies of compromise letters or promissory notes.
The Cashier must maintain a PDC Register with entries including date, name of operator, TR number, bank, check number, amount, or reference number/date.

Operators failing to settle obligations by due date shall be subject to appropriate sanctions.
The Legal Division shall be informed for necessary legal proceedings against delinquent operators.