1 Check

1. Definition:

Check is the bill signed by the issuer who entrusts CEB to pay the collector or bill holder unconditionally at the sight of the bill for the definite amount.

2. Applicable scope:

Any institution or individual can use the check to make any settlement at the same bill exchange area.

3. Attention:
1. The validity of presentment for payment of the check is 10 days from the issuing date.
2. The holder may entrust its account bank to collect or present to the payer for payment directly. In the case of payment for cash-drawing check, it is mandatory that the collector present the check to the payer for payment.
3. When the holder entrusts its account bank to collect the money, he shall make the endorsement for collection and attach the signature and chop in the column of endorser on the back of the check, recording the wording of “entrusted collection”, the endorsed date, and the name of the bank of deposit in the column of endorsee.

2 Bank draft

1. Definition:

Bank draft is the bill issued by CEB who will pay the collector or bill holder unconditionally at the sight of the bill according to the actual settlement amount.

2. Applicable scope:

Bank draft can be used for any settlement of institutional or personal payments; intra-city and off-site purchase can also use such settlement mode.

3. Attention:
1. Bank draft is featured by "draft with its holder, purchase with the draft, automatic refund of balance and transferable with endorsement ".
2. The validity of presentment for payment of the bank draft is 1 month from the issuing date.
3. Bank draft can be used for fund transfer; the bank draft with the wording of "cash" can be cashed; the applicant and collector of cash bank draft shall be individuals.

3 Cashier's check

1. Definition:

Cashier's check is the bill issued by CEB who will pay the collector or bill holder unconditionally at the sight of the bill for the definite amount.

2. Applicable scope:

Any institution or individual can use the cashier's check to make any payment at the same bill exchange area.

3. Attention:
1. Cashier's check is transferable.
2. The validity of presentment for payment of cashier's check is no longer than 2 months from the issuing date.
3. Cashier's check can be used for fund transfer, and the cashier's check with the wording of "cash" can be cashed. If the applicant or collector is a institution, no cashier's check shall be issued.

4 Commercial bill

1. Definition:

Commercial bill is the bill signed by the issuer who entrusts the payer to pay the collector or bill holder unconditionally for the definite amount on the designated date.

2. Applicable scope:

Commercial acceptance bill can be used for intra-city and off-site settlements.

3. Attention:
1. Commercial bill includes commercial acceptance bill and banker's acceptance bill. Commercial acceptance bill is accepted by the payer other than the bank, while banker's acceptance bill is accepted by the bank.
2. The tenor for the commercial bill is no longer than 6 months from the issuing date.
3. The validity of presentment for payment of the commercial bill is 10 days from the issuing date.

5 Remittance

1. Definition:

Remittance is a settlement mode whereby the remitter entrusts CEB to make the payment for the collector.

2. Applicable scope:

All the payments by any unit or individual can be settled collectively by remittance.

3. Attention:
1. The remittance receipt issued by CEB to the remitter can only be used as the proof for the latter to accept such remittance instead of the certificate that proves that the remittance is deposited into the collector's account.
2. The credit notice given by the account bank to the collector is the only certificate that proves that the payment is deposited into his account.

6 Entrusted collection

1. Definition:

Entrusted collection is a settlement mode whereby the collector entrusts CEB to collect money from the payer.

2. Applicable scope:

Entrusted collection is applicable to intra-city and off-site settlements.

3. Attention:
1. Any unit or individual shall make the settlement by means of entrusted collection with such debt certificates of the payer as the accepted commercial bill, bond, and certificate of deposit.
2. The settlement by entrusted collection can be done by mailing or cabling, subject to the choice of the collector.
3. The payer's failure to notify the bank of the payment within 3 days from the second day of receiving such notice is deemed as the payer's agreement on such payment.
4. Within the same city, collector can use special intra-city collection to collect public affair charges or he may do so according to the stipulations by the State Council.

7 Payment for collection

1. Definition:

Payment for collection is a settlement mode confirmed of such payment by the payer to the bank whereby the collector entrusts the bank to collect the payments from the off-site payer after the delivery of goods according to the purchase and sales contract.

2. Applicable scope:

Payment for collection is applicable to off-site settlement.

3. Attention:
• Both the collector and the payer shall be state-owned enterprises, supply and marketing cooperatives and the urban or rural industrial enterprises of collective ownership fairly well operated and accepted by the account bank.
• The payments shall be those for labor supply in commodity transaction or related to it; the payments of agency sales, consignment sales and credit sales of goods shall not be settled by payment for collection.
• Before making the settlement by payment for collection, both the collector and the payer shall enter into the purchase and sales contract in compliance with Economic Contract Law and specify the settlement methods in the contract.
• The initial payment for collection shall be RMB 10,000, and that for Xinhua bookstore system shall be RMB 1,000.
• The payment for collection can be done by mailing or cabling, subject to the choice of the collector.