Cheque Bounce In 2025

Cheque

In simple words, a cheque is an order to a bank to pay a particular sum of money from the account of the issuer of the cheque, written on a specifically printed form. The issuer of the cheque is called the drawer, while the person to whom the cheque is issued is the bearer. The bank that holds and transfers the money for the drawer is called the drawee.

Federal Decree-Law No. 50/2022 Issuing the Commercial Transactions Law lays down various provisions regarding cheques. Article 514 of the law defines a cheque as a commercial paper with an order issued by the drawer to the drawee bank, to pay on the date fixed therein as the date of issuing a specific amount of money to a third person namely the beneficiary or to bearer.