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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles
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Chapter Two: Ending of the Obligation Established in the Cheque
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Subchapter II: Failure to Pay
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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles
Law Summary Record
Type:
Law
Number:
16
Date:
25/08/1971 Corresponding to 04/07/1391 Hijri
Number of Articles:
477
Status:
In force
Official Gazette :
Issue:
7
Offcial Journal Issue
Publication Date:
01/01/1971 Corresponding to 05/11/1390 Hijri
Page from:
3458
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Subchapter II: Failure to Pay
466 Article
The holder of the check may recourse to the drawer, endorsers and the others of the obligors in case he submitted it on the legal time but not repaid, provided he proved the refraining from repayment by means of protseto. Instead of the protesto he may prove said refraining by:-
Statement issued by the drawee mentioning also date of check submission.
B- Statement issued by a Clearing House mentioning that the check was submitted on the appointed time but was not paid. Statement should be dated and written on the check and should be signed under by the issuer. No way to refuse writing said statement on the check in case asked by the holder, even if the check includes condition of recourse without expenses, but what is possible for the obligor (in his capacity) is to ask for a period, to submit the check, not exceeding the next working day ... even if it is submitted on the last day of the submission date.
467 Article
The holder may reserve his right in recoursing to the drawer even if the holder did not submit the check to the drawee or did not make the protesto or any substitute on the legal required date;unless the drawer had submitted the “in return of fulfilment” and this in return kept with the drawee until the elapse of date of check submission, then it happened that the in return is removed by an action not related to the drawer.
468 Article
Decline from payment should be proved as stipulated in article
466
before the date of submission If submission is made on the last day of said date, declining may be proved on the next working day.
469 Article
In cases of force majeure that made the submission of the check or making the protesto on the appointed time impossible, then said time is extended. The holder should notify without any delay the person who endorsed the check to him about said force majeure and should confirm said notification affixing the date and signature on the check or on the attached paper. Said notification should go in serial until it comes to the drawer. The holder after clearance of the force majeure should submit the check to the bank for repayment without any delay and then make the protesto or any other alternative.
Should the force majeure extend for more than 15 days from the date of the above notification to the endorser - even if said date came before the elapse of date of submission of the check- recourse to obligors is then possible without submission of the check or making the protesto or its alternative. Affairs related to the holder of the check personally or to whomever he instructed to submit or to make the protesto or its alternative shall not be considered as a force majeure.
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