The Electronic Presentment of Instruments (Evidence of Payment and Compensation for Loss) Regulations 2018
| Jurisdiction | UK Non-devolved |
| Citation | SI 2018/832 |
| Year | 2018 |
2018 No. 832
Banks And Banking
The Electronic Presentment of Instruments (Evidence of Payment and Compensation for Loss) Regulations 2018
Made 10th July 2018
Coming into force in accordance with regulation 1
The Treasury make the following Regulations in exercise of the powers conferred by sections 89D, 89E and 89F(1) of the Bills of Exchange Act 18821.
A draft of these Regulations has been laid before and approved by resolution of each House of Parliament in accordance with section 89F(3) of that Act.
PART 1
Introductory provisions
Citation and commencement
1. These Regulations may be cited as the Electronic Presentment of Instruments (Evidence of Payment and Compensation for Loss) Regulations 2018 and come into force on the 21st day after the day on which these Regulations are made.
Interpretation
2. In these Regulations, “working day” means any day other than—
(a) Saturday or Sunday,
(b) Christmas Day or Good Friday, or
(c) a day which is a bank holiday under the Banking and Financial Dealings Act 19712in any part of the United Kingdom.
PART 2
Copies of instruments and evidence of payment
Provision of copy of a paid instrument
3.—(1) A banker who has paid an instrument as a result of presentment under section 89A of the Bills of Exchange Act 1882 must, if requested to do so by the creator of the instrument3, provide a copy of the instrument to the creator before the end of the period of 10 working days beginning with the first working day after the banker received the request.
(2) The copy of the instrument must be a complete and accurate reproduction of both faces of the instrument.
(3) The copy of the instrument must be accompanied by the following information—
(a)
(a) confirmation of—
(i) the decision of the banker, or a person authorised to pay or refuse payment on the banker’s behalf, that the payment should be made and the date upon which that decision was made, or
(ii) the automated instruction for payment of the instrument, and the date of that automated instruction;
(b)
(b) the value of the payment made to the banker authorised to collect payment of the instrument;
(c)
(c) the sort code and account number of the account of the creator of the instrument;
(d)
(d) any reference number allocated by the banker authorised to collect payment of the instrument, used to identify the payment instrument.
(4) The copy and accompanying information must be provided—
(a)
(a) on paper, or
(b)
(b) in a format which—
(i) enables the creator of the instrument to store the copy and information in a way which is accessible for future reference for a period of time adequate for the purposes for which the copy and information is provided to the creator; and
(ii) allows the unchanged reproduction of the copy and information.
(5) If the copy and accompanying information is provided in accordance with paragraph (4)(b) and the creator of the instrument requests that the copy and accompanying information be provided on paper, they must be provided on paper.
(6) The first copy of an instrument provided under paragraph (1) must be provided free of charge.
(7) If the creator of an instrument requests more than one copy of the instrument, or makes more than one request for a copy of the same instrument—
(a)
(a) the banker who paid the instrument may request that the creator pay a fee for the provision of the copies of the instrument other than the first copy, and
(b)
(b) if the banker makes such a request, until the creator has paid such fee the banker need not comply with the requirement in paragraph (1) in relation to copies other than the first copy.
(8) In paragraph (7), the references to a fee are to a fee which reasonably corresponds to the banker’s costs of providing the copies of the instrument and accompanying information other than the first copy.
Copy of instrument as evidence of payment
4. A copy of an instrument and the accompanying information provided in accordance with regulation 3 is evidence of receipt by the payee named in the instrument of the sum payable by the instrument.
PART 3
Compensation for loss
Responsible banker to compensate eligible claimants
5.—(1) Subject to the following provisions of this Part, a responsible banker4must compensate a person (“the claimant”) for loss incurred by the claimant if—
(a)
(a) the claimant incurred the loss in connection with electronic presentment or purported electronic presentment of an instrument5,
(b)
(b) the claimant is—
(i) the customer of the banker which has paid the instrument, from whose account the payment was debited, or
(ii) the banker which paid the instrument,
(c)
(c) the loss resulted wholly or in part from a factor other than—
(i) gross negligence6on the part of the claimant, or
(ii) fraudulent activity in which the claimant was knowingly involved,
(d)
(d) the claimant has notified a banker in accordance with regulation 6(1) and made a claim in accordance with regulation 6(3) and (4), and
(e)
(e) one of the criteria in paragraph (2) is met.
(2) The criteria are—
(a)
(a) the electronic presentment or purported electronic presentment of the instrument was of a type described in section 89E(2)(c), (d) or (e) of the Bills of Exchange Act 1882;
(b)
(b) the instrument was collected for or paid to a person other than the true owner of the instrument.
(3) Paragraph (1) applies irrespective of fault for the loss incurred by the claimant (but regulation 8 makes provision for the reduction in the amount of compensation to be paid in certain circumstances).
(4) In this regulation, references to “loss” are to loss arising directly from the debiting of funds from the claimant’s account and do not include any further loss arising in consequence thereof.
Procedure for making and determining claims
6.—(1) Before making a claim for compensation under this Part—
(a)
(a) where the claimant is the customer of the banker which paid the instrument, and from whose account the payment was debited, the claimant must notify that banker in writing of the loss to which the claim relates;
(b)
(b) where the claimant is the banker which paid the instrument, the claimant must notify the responsible banker in writing of the loss to which the claim relates.
(2) Where the banker which paid the instrument has been notified in accordance with paragraph (1)(a), that banker must notify the responsible banker in writing of that notification before the end of the...
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