What is a Cheque?
Cheque is a negotiable instrument regulated by the third book of the TCC of the Turkish Commercial Code numbered 6102 and the Cheque Law numbered 5941 and the communiqués issued pursuant to this law. Cheque is a type of bill of exchange used to meet the needs of commercial life and at the same time to overcome the various difficulties of carrying cash.
The fact that the cheque is a means of payment provides various benefits for the drawer and the bearer. First of all, payment by cheque is more urgent and certain than payment by cash. Again, payments made by cheque provide convenience in terms of proof.
The absence of even one of the mandatory elements of the cheque renders the promissory note invalid, and in this way, the interests of those concerned are tried to be protected. However, in addition to this strict attitude, the legislator has continued to consider the bill valid despite the absence of some formal requirements.
What are the mandatory elements of a cheque?
1) The Word Cheque
2) Unconditional and Unconditional Remittance for the Payment of a Certain Price
3) Interlocutor
4) QR Code Cheque and Serial Number
5) Date of Issue
6) Signature of the Organiser
7) Place of Arrangement
8) Place of Payment
Non-Payment of a Cheque:
In order to obtain the cheque amount, the cheque holder must present the cheque to the addressee bank for payment within the presentation period. This issue is regulated in the relevant article of the CC as follows: “When the cheque is presented to any branch of the correspondent bank where the account is located, it shall be paid after the tax identification number of the bearer, if any, is determined. However, when the cheque is presented to a branch other than the branch where the account is located, it shall be paid by that branch by asking for the equivalent.”
The cheque bearer is not authorised to ask whether the cheque has been paid or not. Cheques may be presented by the bearer to the addressee bank for payment even if the issue date on the cheque has not yet expired; however, payment is subject to the condition that there is a provision in the account. In other words, cheques presented before the issue date on the cheque will be paid by the addressee only if there is a provision in the account; however, if there is no provision in the account, it will not be subject to the “bounced” transaction.
What is a bounced cheque?
On the date the cheque is presented to the bank, if the amount written on the cheque is not found in the relevant bank account, it is defined as a bounced cheque. In order to be able to speak of a bounced cheque, the absence of the amount of the cheque in the issuer’s account is not a sufficient reason alone. In order for a cheque to be considered a bounced cheque, certain elements must be present together.
These elements are
o The promissory note presented to the addressee bank for payment must be in the form of a cheque.
o The cheque must be presented to the addressee bank by the legitimate bearer.
o The cheque must have been presented to the correspondent bank within the legally stipulated presentation periods. If the cheque is presented before the date of issue or if the cheque is presented after the expiry of the presentation period, it will no longer be considered bounced.
What are the Collection and Follow-up Procedures for Bad Cheques?
Execution proceedings specific to bills of exchange can be carried out for cheques that meet the validity conditions and have been bounced. In addition to enforcement proceedings, when the cheque holder uses the right of complaint regarding the crime of bounced cheque, the collection of the unpaid cheque becomes easier, as the debtor will face criminal sanctions.
What We Need to Know About the Offence of Writing Bad Cheques
– It is an offence subject to complaint,
– In order for the offence to occur; the cheque must be presented to the addressee bank by the authorised bearer within the legal presentation period. The cheque presented within the legal submission period must not have been paid in whole or in part. A bounced cheque must be processed. And the bearer must file a complaint within three months from the date of the dishonoured cheque.
– The time when the offence occurs is the moment when the dishonoured cheque is processed,
– Penalty for the Offence of Issuing Bad Cheques: Upon the complaint of the bearer, a judicial fine of up to 1,500 days shall be imposed for each cheque. In case of non-payment of the judicial fine, this fine shall be directly converted into imprisonment.
Specific Proceedings for Bills of Exchange;
Specific enforcement procedures for bills of exchange are a special enforcement procedure that can be used for bills of exchange regulated under the TCC.
A person who has a money or collateral receivable may apply for proceedings through general attachment, as well as if this debt is tied to a bill of exchange, he/she may use the ways of proceedings specific to bills of exchange, which are specially regulated by the law and which are more advantageous than proceedings through general attachment. Since the bills of exchange are listed in a limited number in the TCC and consist of policies and cheques, if the creditor’s receivable is based on one of these bills, the creditor may apply to the specific enforcement procedures for bills of exchange.
In proceedings by way of attachment specific to bills of exchange, the debtor may exercise the right to object to the signature or debt by applying to the execution court to which the execution office conducting the proceedings is affiliated within 5 days from the notification of the payment order. Objecting to the payment order does not stop the proceedings other than the sale. However, the debtor who objects to the payment order may request the execution court to temporarily suspend the execution proceedings in order to prevent the seizure of the goods or the payment of the money in the execution cashier to the creditor.
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