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Lending to Equity Bank Employees
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Investor1
#11 Posted : Friday, June 21, 2013 7:57:13 AM
Rank: Member

Joined: 1/20/2009
Posts: 13
The defaulting employees are in Kenya!
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mukiha
#12 Posted : Friday, June 21, 2013 8:13:41 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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maka
#13 Posted : Friday, June 21, 2013 9:43:00 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...
possunt quia posse videntur
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mkeiyd
#14 Posted : Friday, June 21, 2013 10:59:38 AM
Rank: Veteran

Joined: 3/26/2012
Posts: 1,182
Investor1 wrote:
The fact that it's illegal to bounce a cheque on account of insufficient funds and closed account, the said staff member use technical reasons like signature differs.

So far I know of about 113 employees which I think it's a sizable number.


@Investor, How many Ekwety employees do you know again?

Moving on, who are you? NSA?
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mukiha
#15 Posted : Friday, June 21, 2013 11:50:37 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
maka wrote:
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...


Which law is this? Give specific reference - chapter, Act and section
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mwekez@ji
#16 Posted : Friday, June 21, 2013 12:04:04 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
CRIMINALISATION OF BOUNCING OF CHEQUES.

To deter issuance of cheques without funds in the respective accounts and thereby enhance confidence in cheques as a payment and settlement instrument, the Penal Code was amended through the Finance Act, 2004 to CRIMINALISE THE BOUNCING OF CHEQUES. Accordingly Section 316A (1) of the Penal Code states that, ‘’any person who draws or issues a cheque on an account is guilty of a misdemeanour if the person:-

(a) Knows that the account has insufficient funds;
(b) Knows that the account has been closed or
(c) Has previously instructed the bank or other institution at which the account is
held not to honour the cheque.

The purpose of this NOTICE is to remind the public that it is a criminal offence to issue a cheque whilst knowing that there are no funds in your account to meet the value of the cheque. In this regard, drawers of cheques should ensure that there are sufficient funds in their accounts before issuing cheques for payment. Payees (beneficiaries) of cheques that bounce are advised to report the offence to the Banking Fraud Investigations Department (BFID) at the under listed address or the nearest Police Station/Criminal Investigations Department (C.I.D.) office for further action.BFID has been instructed to promptly prosecute all offenders.

Banking Fraud Investigations Department
Marshalls House, Harambee Avenue
P. O. Box 60000-00200
NAIROBI
Tel: 020 2860000
CENTRAL BANK OF KENYA
JANUARY 2008

http://www.ubakenya.org/new/fil...ncing%20of%20cheques.pdf
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maka
#17 Posted : Friday, June 21, 2013 12:20:38 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mukiha wrote:
maka wrote:
mukiha wrote:
Investor1 wrote:
The defaulting employees are in Kenya!


Yeah..... but it's not illegal to bounce cheques in Kenya! Read the banking act.

Firstly it is illegal to issue a bouncung cheque and it carries a penalty of 1 year imprisonment. However this is only for cheques dishonoured on the basis of insuffuciency of funds. The remedy is a cause of action in contract...


Which law is this? Give specific reference - chapter, Act and section

Read above post #16 thanx @Mwekezaji
possunt quia posse videntur
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mukiha
#18 Posted : Friday, June 21, 2013 12:21:57 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
mwekez@ji wrote:
CRIMINALISATION THE BOUNCING OF CHEQUES.

To deter issuance of cheques without funds in the respective accounts and thereby enhance confidence in cheques as a payment and settlement instrument, the Penal Code was amended through the Finance Act, 2004 to CRIMINALISE THE BOUNCING OF CHEQUES. Accordingly Section 316A (1) of the Penal Code states that, ‘’any person who draws or issues a cheque on an account is guilty of a misdemeanour if the person:-

(a) Knows that the account has insufficient funds;
(b) Knows that the account has been closed or
(c) Has previously instructed the bank or other institution at which the account is
held not to honour the cheque.

The purpose of this NOTICE is to remind the public that it is a criminal offence to issue a cheque whilst knowing that there are no funds in your account to meet the value of the cheque. In this regard, drawers of cheques should ensure that there are sufficient funds in their accounts before issuing cheques for payment. Payees (beneficiaries) of cheques that bounce are advised to report the offence to the Banking Fraud Investigations Department (BFID) at the under listed address or the nearest Police Station/Criminal Investigations Department (C.I.D.) office for further action.BFID has been instructed to promptly prosecute all offenders.

Banking Fraud Investigations Department
Marshalls House, Harambee Avenue
P. O. Box 60000-00200
NAIROBI
Tel: 020 2860000
CENTRAL BANK OF KENYA
JANUARY 2008

http://www.ubakenya.org/new/fil...ncing%20of%20cheques.pdf


Asante sana. I was behind news on that one. Now I have seen the full code here http://www.kenyalaw.org/...Acts/PenalCodeCap63.pdf

The offence is a misdemeanour punishable by "a fine not exceeding fifty thousand shillings, or to imprisonment for term not exceeding one year, or to both"

Section 316A(1)(c) is interesting... it can be interpreted to mean that it is illegal to stop payment of a cheque... if one can prove that the stoppage was done BEFORE the cheque was issued.... meaning of "issued" can be debated for a long time!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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