Recommendations And Warnings Regarding The Using Cheques
The cheque is one of the most frequently used instruments of payment in Turkish commercial life. Many legal regulations have been made regarding cheques from the past to the present, bringing about serious change and innovation in the law of cheques as well as commercial law. In this article, we will briefly try to explain the most important topics that must be noted as they are often misconstrued and lead to mistakes in practice. When it comes to the instrument of payment known as the cheque, the ‘drawer’ is the person drafting the cheque, while the ‘bearer’ is the person who will receive payment and the ‘drawee’ is the bank providing the cheque to the drawer. The text of a cheque must include the word ‘cheque’. As the cheque unconditionally requires a specific amount to be transferred in order for it to be paid, it cannot contain a contingent provision. When submitting a cheque to the bank, it must contain the amount, the place if issue, the date of issue and the signature of the signature of the drawer. In the event that the signature on the cheque is a real signature, any claims that the other parts were filled in a way that contradicts the agreement but without falsification must be proven with written documents. Similarly, any claims that the cheque has already been paid can only be proven through bank records or written documents. After this general legal briefing on cheques, we explain below the most important topics that must be known regarding the practice of using cheques. -All cheques must be signed by the drawer specified in writing on the cheque or, in the event that the drawer is a company, they must be signed by the authorised person from the company. This is why it is very important for the cheque to be signed next to the bearer or for the bearer to see and get copies of the authorised signature list. However, in the event that none of the above is possible, confirmation must be received from the bank regarding whether the signature on the cheque is the authorised signature and whether it is sufficient. This is even more important for companies represented by joint signatures where there are two authorised signatures.
• When an error is made in the handwritten sections on the cheque (date, amount, name and title of the bearer, etc.) or when these sections with to be changed even if there is no error, the drawer must sign (initial) each correction separately. It is more appropriate for the correction to be made in the form of crossing out the erroneous item and rewriting it.
• According to the current legal regulation, cheques made out ‘to bearer’ can only be done on cheques printed by the bank that include the word ‘bearer’. All other cheques that include the words ‘to bearer’ in handwriting will be considered void, and the name of the bearer or the company receiving the cheque must be included.
• Similar to all bills of exchange, the order of endorsement must be paid attention to when it comes to cheques, as well. The first endorser of the cheque must be the person or company to whom the cheque is made out. Otherwise, the order of endorsement will be altered and the authorised bearer who receives a cheque like this will not be approved.
• Recent legal regulations on cheques have extended the term of limitations, which had a very short duration of 6 months in previous regulations, up to 3 years. Therefore, as long as the 3-year term has not been exceeded, cheques may be tracked for exchange and a lien may be demanded.
• A person who is asked to serve as a guarantor for a cheque may be authorised as the drawer of the cheque by writing his or her name, title and status as the guarantor on the front the cheque and signing it. In order to do this, the guarantor must sign on the front of the cheque in the blank areas without text instead of the back of the cheque.
• Since the names, titles and Turkish identity numbers or tax numbers of the endorsers whose endorsement is found on the back of bad cheques are required for lien and retention procedures, it is a good idea to ask for this information when receiving the cheque.
• In the event that there are not enough funds in the bank to cover the cheques, it is mandatory for the bank to pay the amount for which the bank is responsible for each cheque. This amount is updated each year, and it may be requested either at the time of presentation or at a later time.
• If a cheque you received from your customer and endorsed will be returned to the customer without giving it to the bank, the endorsements on the back of the cheque (yours and those who come after yours) must be voided before returning it. When returning the cheque, a signed and dated document must be received from the cheque drawer or endorser stating that the cheque was received. (This may be done by getting that person to write ‘I have received the cheque’ as well as including his or her name and signature on a photocopy of the cheque)
• Lastly, we recommend keeping a copy of all cheques and bills given to or by your company, as they may be beneficial and even required for a variety of legal situations you may encounter in the future.