NEW AMENDMENTS ON CHEQUE’S ISSUANCE REGULATION
It is important to cite that the “the new amendment with regards to an issuance of cheque regulation” had been ratified by Iranian Parliament on Nov. 04, 2018 while currently the Central Bank as a pioneer bureau is at the stage of the execution of this amendment related to issuance, circulation and receipt of all types of cheques.
In fact, the main aim behind execution of this amendment is the shortcoming of proper organized system, the high risk in financial transactions, insecurity in business environment and prolonging the proceedings in the Iranian judiciary system. However, the implementation of some of the ratified amendments were immediately executed after promulgation of the law in 2018, the crucial points of cheque’s new developments are as hereunder:
Electronic cheque is recognized for the first time, which means the current account holders instead of issuing an item cheque according to their electronic signatures, issue an order to the bank to transfer a certain amount to a targeted person on the specified date and the guarantee requirements are also valid in electronic cheque.
It shall be noted that launching the new portal for integrated electronic issuance of cheques (called Sayad), establishing relative symmetry of information at the time of issuance of the cheques for the recipient by launching the SMS inquiry system of returned cheque and setting up new materials of cheque contents by issuing court executive order against the issuer of returned cheque without substantive review are the key elements of this development. Besides. the new system allows the cheque holder to endorse and negotiate cheque to others or can collect the amount and deposit to her/his bank account, although, issuance a cheque to bearer is forbidden.
Meanwhile, in case of issuing a non-payment certificate under the request of the cheque holder, the account issuer will immediately consider as a non-reliable account in the Central Bank system which leaves several restrictions on issuer e.g. the issuer is unable to open any new bank accounts, she/he is not able to get any banking services including loan, bank guarantee, LC, etc., and all banks and monetary institutions are obliged to block the issuer accounts until she/he will be in a position to cash the cheque with fulfillment of the certain formalities.
It is remarkable to illustrate that based on Central Bank system, by receiving the tracking code it is possible to receive a cheque without offering the application by requesting the issuance of an executive order and to carry out the enforcement process. Subsequently, in case of a fraction in the issuer’s account, the whole of the amount can be collected by the cheque holder and a certificate of non-payment will be issued for the rest of the amount.
It is noteworthy that the bankrupt and insolvent person are not capable to obtain cheque book since the inquiry of records, verification of non-prohibitions and issuance cheque book will be fully accomplished by the Central Bank system which reflects the maximum credit alongside with the history of issuing returned cheque in the last 3 years and the amount of owing guarantee through the Central Bank.
Moreover, people who do not have any cheque book could request a cheque (called temporary cheque) under some terms and conditions.
Considering the above, the major points of new amendments of this law is the possibility of the electronic endorsement, remitting the electronic cheque, the prohibition for endorsement or issued to the bearer, issuance of the executive order (in the subject of cheque amount as well as the legal fees of the lawyers) through the court in which it is feasible to appeal to the executive order. While, before implementation of this new regulation, for the sake of ceasing of the executive order, the full amount of cheque had to be deposited as the security but from now on the appellant can cease the court order by deposit less amount which will be under the court’s discretion. Accordingly, there is a possibility of revocation of the executive order, which will be pragmatic by filing a lawsuit for revocation in the branch of issuing the executive order.
There is no doubt that the occurrence of crimes such as forgery and theft as well as the number of returned cheques will be reduced by execution of this new amendment.
Submitted by Mrs. Mahnaz Mehrinfar, Ms. Roza Einifar & Ms. Newsha Ardalan