COVID - 19 Suspension of Penalties for Bounced Check Drawers Rejected Due to Lack of Funds or Withouth Authorization

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SUSPENSION OF PENALTIES FOR CHECK DRAWERS REJECTED DUE TO LACK OF FUNDS OR WITHOUT AUTHORIZATION TO OVERDRAW

The Executive Branch issued Decree No. 312/2020 suspending, the penalties provided for in section 1 of Law No. 25,730 for bounced checks due to lack of funds, without overdraft authorization or due to formal defects until April 30, 2020 (inclusive)..

Therefore, until the expiration of the term established by the aforementioned decree, financial institutions shall refrain from closing bank accounts and penalties and disqualification may not be imposed on drawers.

 

The suspension period may be extended by the Executive Branch in the event that the health emergency is extended.

The regulation shall come into effect upon its publication in the Official Gazette, that is, on March 25, 2020.