The bank is not entitled to collect part of the amount without it

The written consent of the check holder is a prerequisite for the application of “partial fulfillment”

The amendments to checks will come into effect on January 2, 2022. Archive

A banking source said that presenting the check and returning it to insufficient balance is a prerequisite for applying “partial fulfillment” to it, and it must be with the written consent of the check holder, at his request, and not a procedure from the bank itself.

The source explained to «Emirates Today», preferring not to be named, that according to the amendments to the checks, which will enter into force starting from the second of January 2022, the bearer of the check has the right to present it for collection, and if the account drawn on the check does not have sufficient balance, it cannot be deducted. The check must be returned first, and then the check holder is contacted and informed of the amount available in the balance, as well as informing him of the possibility of partial collection of the available value. If he agrees, a form that includes the request in detail and signed by him must be filled out.

Discretion

The source added, that if the check holder does not agree to this procedure, the bank does not have the right to act on its own in any way towards collecting part of the check, but it must stamp the check and return it to its bearer, as a bounced check, and then the latter has the freedom to act, either Waiting until the full amount is available in the account or used as an execution bond against the issuer of the check, in accordance with the legal procedures announced in the amendments.

He added that the returned check can be presented several times for "partial payment" with every amount available in the account drawn on it, until the bearer fulfills his full entitlement.

Queries

The source indicated that the Central Bank is currently collecting from each bank all the inquiries and problems that the banks believe need to be clarified before the amendments enter into force on the second of next January, while the “Central” stated that the banks will receive all responses during the next few days.

Apply adjustments

It is noteworthy that at the beginning of this November, the Central Bank announced that the new amendments to the Commercial Transactions Law regarding the decriminalization of the check without a balance and the amendments related to the “partial fulfillment” of the check, and the tightening of administrative penalties for issuing the check without a balance, will enter into force starting from From January 2, 2022.

partial fulfillment

The Central Bank clarified, in a circular it sent to banks and finance companies, that “partial payment means paying part of the value of the check, according to the amount available in the account.”

He added that the bank, if the balance available in the account is less than the amount of the check, must make partial payment to the extent that it has, unless the check bearer refuses to do so, indicating that in this case the bank must indicate, upon each partial payment, on the back of the check, indicating that.

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