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Cashier’s Check deemed as Cash

June 29, 2008

New Pacific vs Seneris, No. L-41764, Dec. 19, 1980

Facts:

This is a case about a complaint for collection of sum of money.  The parties entered into a compromise agreement where the debtor promised to pay the creditor for sum of money.  For failing to comply with the compromise, the judge issued a writ of execution auctioning the properties of the debtor.  Before the auction, the debtor presented a cashier’s check bu the creditor did not accept this.

Issue:

May the creditor be compelled to accept the cashier’s check as payment?

Ruling:

If the check is ordinary check, he may do so as provided for under Section 63 of Central Bank Act.  But the cashier’s check paid by the creditor also falls under the exception of Section 63 which says,

Provided however,  that the check which has been cleared and credited to the account of the creditor shall be equivalent to a delivery to the creditor in cash in an amount equal to the amount credited to his account

As practiced in the business sector, a cashier’s check is deemed as cash. 

Posted by elaw at 3:07 pm | permalink | comments[23]