Those cheques will not be paid or charged against the account because the action by the Central Bank to suspend the operations of the institutions will cause all accounts to be frozen at the date of suspension. Such cheques will be returned and usually will be marked “drawee bank closed”, or “refer to drawer”. This should not therefore reflect on the credit standing of the institution’s depositor. However, it is the depositor’s responsibility to make funds available to creditors who received cheques that were returned and did not clear through the depositor’s account because of the suspension of the institution.
Frequently Asked Questions
Did You Know?
- Misconception: Beneficiaries under all trust account arrangements are insured separately. - Fact: The interests held by beneficiaries established under an irrevocable express trust account are insured separately up to the maximum TT$200,000 prescribed limit. Additionally, interests in accounts held by the Settlor, Trustee or Administrator of an irrevocable trust account are insured separately from the interests of the beneficiaries named under …