A conformed check It is a representation of a credit instrument which contains the promise of having to pay at sight the amount that has been indicated. In practice, this is about checks that banks issue in advance of payment and that they are obliged to pay them at sight when they are presented. The issuance of a conformed check presupposes a prior availability of the money that was indicated, that is, that the amount deposited exceeds the issuing bank, which will be the one that pays that amount.
Surely more than one has to think that a bank check and a conformed check, but the problem is that it is not distinguished between one and the other, so it causes confusion. However, they are very different, and the consequences of opting for one or the other can have a dramatic change. So the question before making the decision of which one to use makes a lot of sense.
The conformed check It is a normal check, the typical check from a checking account, the kind that has a check book. What makes it special is the compliance clause which is stated on the back that said clause in the bank records that there are balances in the account, retaining them to be paid against that check. What normally happens is that, if they request that the check be conformed, you must present yourself to the bank, issue the check, that they retain the money in the account and that they stamp it as we mentioned, so that the money cannot be arranged for other purposes.
Instead, the bank check is different. The check is issued by the bank itself, so the customer is not required to have a checkbook. Nor do you need to have an account with the issuing bank. Either against cash or against money deposited in an account, the bank will issue a check against your internal accounts. The issuer of the check is the bank itself, which is obliged to pay.
Surely you wonder if you are not guaranteed by both the charging formula. The answer is no, not in the same way. This is due to the fact that the check made keeps the money from us only for the period indicated in the clause, which is usually 15 days. After that date, you can try to collect, but it is not a guarantee. What's more, such retention on the account cannot be opposed to a garnishment or bankruptcy, which is why we may be faced with unpaid checks.
The bank check does not have a deadline especially in that the guarantee works, this is because the guarantee is based on having a direct issue by the bank itself. If the check law is observed, all bank checks, whether conformed or not, must be presented to be cashed all within a period of 15 days after their issuance has been made, but this does not mean anything else. that if this is not done, certain judicial advantages could be lost in the event of non-payment.
It is evident that in the case of bank checks that risk is irrelevant to this day, which is why it is not unusual to find bank checks that can take up to three months to clear. For this reason and considering that the cost is normally the same, I believe that the bank check is clearly imposed, for general security, universal in addition to its remarkable convenience.
The conformed check It is different from the bank check also in other aspects, such as that, in the case of the check, the bank is obliged to pay the amount indicated in the document and for this reason the bearer of the check has the absolute certainty of that the bank will respond and pay the amount indicated in the title only when it is covered. That is, only when there are funds in the account of the client that has been the issuer of the check. While the bank check runs the risk of being issued without funds, on the other hand, the conformed checks are not in danger.
Conditions for the check to be validated
There are some conditions for the validation of the conformed check to be carried out. We explain them below:
- That there is an indication that the indicated sum will be paid on demand.
- That it is inserted in the title of the denomination of conformed or it can also be in the one of visa or certification.
- For the record holder's name, this is because, as it is a security to order, it cannot be issued by the holder.
- That they have indicated the date and place in which the title was issued.
- That it is signed by the bank which issued the check.
The presentation of the conformed check It must be within a period of approximately fifteen days from the moment it was issued by the bank or within the terms previously indicated depending on the place where the check was issued. Without a doubt, the check is one of the most used payment methods in the world. The check is not only used to pay for goods purchased in stores, but is also used by a company to be able to pay its suppliers or a worker who has worked as a freelancer, among other cases.
Broadly speaking, the check is a document or a pay order that it has been written which empowers the person to whom it is extended, to be able to withdraw a sum of money in cash and that it is deposited in a bank account which normally corresponds to the person or company that makes the payment, that is, the signer of the check will have a bank account in that bank that can issue the check in question.
In as much and as a good way of payment so popular, we can find different types of checks, the check being one of many.
El conformed check It is that type of check in which the bank or financial institution is the one that has to pay it, the person who must be in charge of collecting it is assured that he will be able to do it according to because the person who gives him that check can have funds enough to meet this payment. In other words, with the check made, there could be no doubt for the person who receives it that the money to be delivered is the same as that indicated to pay.
This means that for the conformed check is recognizable and valid As such, the financial entities that issue it will have to place in the payment document a clause or a legend that specifies the agreement, certificate, among the most common, in addition to the signature.
there is also another issue that is tied to the issuance of this type of check in particular and is that the bank usually withholds in the customer's account the amount that he must pay by means of the check made. This ensures that the funds are available in any way. It should be noted that the bank that has issued that is about to issue this type of check will charge its client as a commission.
Just as the reason for the aforementioned checks is that their collection is guaranteed without doubts, there are many creditors who sue them to ensure that they will receive the payment that is owed to them. The conformed check It is a type of check which is characterized by the fact that it offers a payment guarantee. In this way, a person who has received one of these documents will have full assurance that within a certain date they will be able to claim the money that corresponds to them and avoid any type of related problem.
Conformed checks are one of the variants that allow in this case to have a guarantee regarding the collection of the document. This in fact is in the case of a normal check that is given the possibility of being cashed and will be subject to the fact that there is money in the bank account or not, this fact can lead to scams or problems of non-payment due to temporary lack of liquidity.
As you can imagine, a check of this type has a great number of advantages for certain circumstances, in which the collection of money is doubted. In this way, it can make up for a lack of confidence in the person issuing the check or a fear of non-payment of a large sum of money, which is why a satisfactory solution is offered in this regard. So the conformed check can also be understood as a guarantee.