Clearing Bank

Clearing Bank – in the sphere of Banking Law this legal term applies to detail the bank which pays for cheques written by their customers, towards the bank account of the person who presents the cheque and whose name is listed on the cheque as beneficiary of the sum. Clearing bank processes payment from the payor towards the payee where a cheque is involved as a method of payment.

Note that it is possible in some countries the cheques not to be recognized yet as a proper way of payment between people, resp. not to find a clearing bank there for a cheque.

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