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Legal Updates in Turkish Dispute Resolution Q1/2012
Focus item in this edition: Bounced Cheques (also see Banking & Finance Q1/2012)
In the judgment of the Court of Appeals dated September 20, 2011 (File No. 2011/9584 E., 2011/10582 K.) the argument was whether banks are subject to a prescription period of six months or 10 years for making payments in return for bounced cheques in accordance with Article 10 of the Law Pursuant to the Regulation of Payments by Cheque and Protection of Cheque Holders (Law No. 3167) which states that in case of a bounced cheque or an insufficient balance, banks are obliged to make payments to person other than the drawers of such cheques up to the amount of TL20,000. In its judgment the Court of Appeals approved the decision of the Local Court, which states that with regard to bounced cheques, banks are subject to a prescription period of 10 years for making the payment of the amount that they are legally liable for.
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