consultation

What is the accepted form of the security check, and what is its legal authority?

(HS) - Dubai

- The basic principle is that the check in UAE law is a payment instrument because its parties are predetermined by the drawer “the source of the check”, the drawee “the bank” and the beneficiary, and none of the parties, especially the drawer, can sign the check as a guarantee, as this does not prevent criminal liability.

It should be noted that the Penal Code does not include the term security check, and with reference to the provisions of the Federal Penal Code No. 3 of 1987 and its amendments, and the rulings issued by the Court of Cassation regarding the check, we find that they all came without the term (security check), which states that there is An original independent obligation assumed by the guarantor, which is considered as insurance for the good fulfillment of the original obligation.

This is inconsistent with the nature of the check, as the crime occurs as soon as it is signed on a date with no corresponding balance, or the check is drawn up in a way that prevents it from being cashed, and the motives are not evident.

Finally, it is necessary to clarify here that the status of the check differs in the civil and commercial law from its status in the penal code, as it is permissible to argue before the civil court that the check is the subject of the case for security, and whoever claims that must prove what he claims.

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