Using Promissory Notes and Checks for Payments

The Board may accept post-dated checks and promissory notes to liquidate unpaid accounts.
Promissory notes and post-dated checks are evaluated, examined, and accepted by one of the Board Members designated by the Chairman.
When the amount exceeds PHP 100,000.00, acceptance by the designated Board Member requires approval by the Chairman.
In Regional Offices, Regional Managers may evaluate and accept promissory notes and post-dated checks, subject to prior clearance from the Board when the amount exceeds PHP 100,000.00.
The Cashier is responsible for safekeeping of approved post-dated checks and for issuing the required receipts and documentation.

The Board accepts promissory notes and post-dated checks to encourage settlement of unpaid obligations.
The acceptance aims to facilitate payment of delinquent operators’ accounts with the Board.
The Circular requires that acceptance should not result in unnecessary hampering of operators’ operations.
The Circular establishes a controlled process for evaluating amounts, approvals, receipt issuance, and monitoring through a dedicated register.

A promissory note (PN) is a written promise executed by a delinquent operator, committing to settle outstanding obligations with the Board within a given period of time.
A post-dated check (PDC) is a check issued but dated in advance, and PDCs are attached to the promissory notes for this purpose.

PUV operators may issue post-dated checks payable to the Board to settle their outstanding accounts with the Board.
Promissory notes and the attached post-dated checks may be issued for the purpose of liquidating unpaid accounts with the Board.
A promissory note may be made by an operator only once per book account.
The processing and monitoring requirements apply to PNs and PDCs submitted for Board acceptance for settlement of delinquent accounts.

Post-dated checks payable to the Board may be issued by PUV operators to settle outstanding accounts.
Post-dated checks must be dated on the 15th or 30th of the month to facilitate monitoring.
After approval for acceptance by the duly authorized officer, post-dated checks must be submitted to the Cashier for safekeeping prior to their due dates.
On due dates, receipt of post-dated checks must be properly acknowledged using the required forms and entries.

Promissory notes and post-dated checks shall be evaluated, examined, and accepted by a designated Board Member.
When the amount is more than PHP 100,000.00, Chairman approval is required for acceptance.
In Regional Offices, Regional Managers evaluate and accept PNs and PDCs.
When the amount exceeds PHP 100,000.00, Regional acceptance requires prior clearance from the Board.

The Cashier shall issue the operator a Provisional or Temporary Receipt (TR).
On due dates, receipt acknowledgement shall be done through Payment Order Slips and/or Official Receipts.
Payment Order Slips and/or Official Receipts must reflect the number(s) of the temporary receipt(s) previously issued.
In the absence of provisional receipts, post-dated checks may be acknowledged as duly received by indicating this on the duplicate of the concerned operator’s compromise letter/promissory note.

The Cashier shall maintain a PDC Register for post-dated checks.
The PDC Register must include the following entries: DATE, NAME OF OPERATOR, TR.NO., BANK, CHECK NO., AMOUNT OR NO., and OR DATE.

If a cheque bounces, the concerned operator must pay the same including surcharges and/or penalties.
Dishonor for insufficient funds does not bar the Board from taking appropriate action against the operator for issuance of cheques without sufficient funds.
Operators who fail to settle accounts on due dates shall be dealt with accordingly.
The Legal Division must be informed so that appropriate actions may be taken against operators who fail to settle accounts on due dates.

The Circular mandates For compliance by the Board’s offices and Regional Offices consistent with the described evaluation, approval, receipt, register, and enforcement processes.