CAP. 27

Point in Time

Act No: CAP. 27

Act Title: BILLS OF EXCHANGE

SUBSIDIARY LEGISLATION

Arrangement of Sections

THE BILLS OF EXCHANGE (CHEQUE TRUNCATION) REGULATIONS

ARRANGEMENT OF REGULATIONS

Citation

2.	Interpretation

Purpose

4.	Particulars of electronic payment information

5.	Particulars of image return documents

THE BILLS OF EXCHANGE (CHEQUE TRUNCATION) REGULATIONS

1.	Citation These Regulations may be cited as the Bills of Exchange (Cheque Truncation) Regulations.

Interpretation

In these Regulations, unless the context otherwise requires—

"check digit" means an automated error detection in a cheque code line;

"cheque code line" means numbers and symbols printed at the bottom of a cheque;

"document reference number" means a unique identification number assigned to a cheque for the purpose of presentment by electronic means; and

"magnetic ink character recognition" means a process used to create machine readable information on a cheque code line.

3.	Purpose The purpose of these Regulations is to prescribe the particulars of electronic payment information and the particulars of image return documents.

Particulars of electronic payment information

The electronic payment information of a cheque shall comprise—

(a)	the document reference number;

(b)

the magnetic ink character recognition cheque code line, which shall contain the—

(i)	cheque serial number;

(ii)	bank code;

(iii)

branch code;

(iv)	check digit;

(v)	voucher type; and

(vi)	account number;

(c)	the amount drawn on the cheque as entered by the imaging system of the presenting bank;

(d)	a digital signature for each of the images captured by the imaging system of the presenting bank; and

(e)	front and rear images of the cheque as captured by the imaging system of the presenting bank.

Particulars of image return documents

An image return document shall contain the—

(a)	name and logo of the presenting bank;

(b)	front and back image of the cheque which has been dishonoured;

(c)	electronic payment information of the cheque or the instrument which has been dishonoured as collected by the presenting bank;

(d)	reason for the dishonour;

(e)	conditions for presentment, including the period within which the presentment must be carried out; and

(f)	signature of a person authorized to issue the document on behalf of the presenting bank.

Laws of Kenya