The new amendments to the Commercial Transactions Law regarding the decriminalization of the check without a balance witnessed many results that resulted in many new terms and regulations and check provisions that defined a new approach to transactions
Banking and everything related to the check and dealing with it. These amendments come within the framework of keeping pace with the economic development that the UAE is experiencing today. The development in the legislative field and its continuous updates are a major reason for the renaissance of the state, given that
Laws and legislation determine the transactions between individuals and some of them and institutions, which benefits all aspects of society as a whole. In this article, we review all aspects that branch from the amendments to the Commercial Transactions Law regarding
Decriminalizing the check without balance, and clarifying all new texts and provisions.
Amendments to the Commercial Transactions Law regarding check decriminalization provisions included a number of objectives, including:
1- Reducing the negative aspects of the practical reality of check transactions, which contributes to achieving the best international practices.
2- Creating a balance between the beneficiary and the drawer and following the best application of justice and equal opportunities, which is beneficial to both parties.
3- Building a strong economy and achieving a leading role in the global economy based on efficiency and quality.
Regarding the features and the most important provisions contained in the new amendments, the cases of criminalizing the check without balance were limited to 4 cases only, as the Central Bank made it clear that these cases were retained in order to achieve the goals for which it seeks to lift the criminalization. where was
Inventory of check and fraud offenses in case of fraud when issuing a check, such as orders from the bank not to cash the check without due right before it reaches the due date, and crimes related to check fraud, cases of closing the account and deliberately withdrawing the entire balance before
Presenting or issuing the check to the bank, and signing or writing the check in any way that prevents its cashing.
The law gave the check the power of an executive bond, which does not need to submit communications or complaints, this leads to speeding up the legal procedures for the provisions of the check, this was done by obligating the bank to fulfill the value of the check, and present it whenever there is sufficient balance
And not to refrain from adhering to this matter. Only two cases of opposition to fulfilling the value of the check were identified: the check’s loss, and the check bearer’s bankruptcy.
There are alternatives approved by the law to collect the value of the check in the fastest way, which are:
1- Obligating the bank to order partial payment of the check.
2- In the case of a check drawn from the bank and there is no balance for it, the check is considered an executive document, and execution is carried out directly through the execution judge without the need to take any legal action.
It is stated that the purpose of fulfilling the value of the check is the payment of the amount of the check by the bank to the bearer, and in return for the fulfillment it is the balance in the account, which is a right available to the drawer and can be exchanged immediately from the bank. The law specified in Article 618 that the date for delivering the check for fulfillment should be within six months if it is from the state or abroad, and the period is calculated starting from the date of issuance of the check.
As for the term partial fulfillment of the value of the check, it means that part of the value of the check is fulfilled, and accordingly the drawer is discharged, even if there are any endorsers or backup guarantors, if any. UAE law did not require that the full value of the check be paid
It is permissible to fulfill part of it, and postpone the remaining part. This is if the financial condition of the drawer does not allow this, and the choice is up to the drawer to accept partial payment or not.
Whereas Article 617 of the Commercial Transactions Law clarifies that if the amount in the bank account is less than the value of the check, partial fulfillment is applied if the check holder agrees. The bank is obliged to mark each partial payment on the back of the check, and the check is delivered
And a certificate of payment for the bearer of the check, and the bank keeps a copy of the check and a certificate of partial payment. Hence the importance of the partial fulfillment certificate from the bank, as it is a guarantee of the check bearer’s right before the judiciary. The Commercial Transactions Law guarantees the provisions of the check
Without a balance of all rights and guarantees of fulfilling the value of the check, as Article 635 of the law clarifies that the check in which it is proven that there is no balance is an executive document, in accordance with the regulations of the Federal Civil Procedures Law.
If an order is issued not to cash the check from the drawer to the bank, this is known as opposition to the check. Some cases of opposition to the payment of the value of the check have been identified. The first case of opposition includes theft or loss of the check, during which it is permissible to
The check bearer files the opposition, and the second case is the bankruptcy of the check holder, and the opposition may come from the drawer or the check holder.
According to Article 600 of the Commercial Transactions Law, the bank has the right to mark the check as credit, and the bank’s signature is calculated on the face of the check as credit.
This results in two outcomes mentioned in Paragraphs 2 and 4 of Article 600 of the same law:
1- The bank may not refuse to pay the value of the check and argue that the balance is insufficient after recognizing the existence of a sufficient amount. In this case, the law obliges it to freeze the value of the fulfillment for payment to the check bearer.
2- The value of the fulfillment of the check bearer is frozen, and the responsibility of the bank is to pay it until the end of the fulfillment period.
The bank also has a role in the partial fulfillment of the check. Article 617 of the law clarifies that the account holder’s data is sent to the Central Bank, and cases were mentioned in which the article is applied, if the check does not contain a consideration for payment, and is not withdrawable on the date specified for it.
If the drawer obtains the consideration for fulfillment after issuing the check in a way that it cannot be cashed, and in case the bank partially fulfilled the check.
All of these instructions are committed by the Bank to implement them through the Central Bank, and it also has a strong role in educating the community and workers in the financial sector with updates and new provisions through the language of the era, which is social networking sites, sites and applications
e. Awareness of the new guidelines is also spread and employees and customers of the bank are directed to the new amendments to the Commercial Transactions Law related to the provisions of the check without balance. The bank also opens its chest to any complaints or questions and works to reach them
For the best solutions, in order to complete the plan for the advancement of the legislative and economic aspect and to put the state always in the forefront.
