Check in Kuwaiti commercial law
Decree-Law No. 68 of 1980 clarifies the issuance of the Commercial Law (1980/68)
Which includes several clarifications on the check handling
01 The First Branch - Create a Check (511-523)
1- The elements of the check
Article 511
1 The check includes the following data:
1- The pronouncement of “check” written on the body of the check and in the language in which it was written.
2- The date on which the check was created and the place of its creation.
3- The name of the person obligated to fulfill the drawee.
4- The name of the person to whom or his order is to be fulfilled, according to what will be mentioned in Articles 516 and 517.
5- An order that is not conditional on paying a certain amount of money.
6- Place of fulfillment,
7- Signature of the person who created the check (the drawer)
Article 512
A check without any of the information mentioned in the previous article is not considered a check, except in the following two cases:
A- If the check does not contain a statement of the place of origin, it is considered originated in the place shown next to the name of the drawer.
B - And if it is devoid of a statement of the place of its payment, then the place assigned next to the name of the drawee is considered the place of its payment, and if several places are mentioned beside the name of the drawee, the check is considered due to be paid in the first place indicated in it. If the check is devoid of these data or any other statement, it shall be deemed due to be paid in the place where the principal place of the drawee is located.
Article 513
1- Checks issued in Kuwait and due to be paid in it may not be drawn except on a bank, and instruments drawn in the form of checks on a non-bank are not considered valid checks.
2- Every bank that has payment for fulfillment and has handed over to its creditor a blank check book in accordance with it from its safe, must write on each check the name of the person who received the book.
Article 514
- It is not permissible to issue a check unless the drawer has money with the drawee at the time the check is created that he can dispose of according to a check according to an explicit or implicit agreement.
2- The drawer of the check or someone who orders someone else to draw it to his account must pay the consideration for its payment. Nevertheless, the drawer for the account of others remains personally responsible towards the endorsers and the bearer and not others.
3- The drawer has to prove in case of denial that the person who draws the check had a consideration for its payment at the time of its creation. If this is not proven, then he is a guarantor of his fulfillment even if the protesto did after the specified dates.
Article 515
1- No acceptance in the check, and if the phrase acceptance is written on the check, it is considered as if it was not.
2- Nevertheless, it is permissible for the drawee to mark the check with its approval, and this phrase indicates the existence of a consideration for payment on the date of the indication.
3- It is not permissible for the drawee to refuse to approve the check if he has a consideration sufficient to pay its value.
4- The drawee's signature on the check issued is considered as his credit.
Article 516
1- It is permissible to stipulate the payment of the check:
A- To a named person with or without explicitly stipulating the condition of the order.
B- To a named person with a condition - not for an order - or any other phrase that states this meaning.
C- To the bearer of the check.
2- A check drawn in the interest of a named person in which the phrase “or for its bearer” is stated or any other phrase that states this meaning is considered a bearer's check. If the name of the beneficiary is not indicated, the check is considered for its bearer.
3- A check that includes a condition - non-negotiable - is only paid to its bearer who received it in conjunction with this condition.
Article 517
- The check may be withdrawn to the order of the drawer himself.
2- It may be withdrawn to the account of another person.
3- It is not permissible to withdraw it from its drawer himself except in the case of withdrawing it from a facility on another facility, both of which are for the same drawer, provided that it is not payable to its bearer
Article 518
Stipulating interest in the check is considered as if it was not.
Article 519
It is permissible to stipulate the payment of the check in another bank located in the body in which the drawee is domiciled or in any other body.
Article 520
1- The drawer guarantees the check’s fulfillment and every condition exempts the drawer himself from this guarantee is considered as if it was not.
2- The debt is not renewed with the creditor’s acceptance that a check is received for his debt. Rather, the original debt remains with all its guarantees until the value of the check is paid.
2- Multiple copies and distortion (521-523)
Article 521
With the exception of the check for its bearer, the check may be drawn in multiple copies identical to each other, if it was drawn from a country and is payable in another country, or in a part of the country located overseas, or vice versa, or it was drawn and payable in different part or parts of the country located across Seas.
Article 522
If a check is withdrawn in more than one copy, its number must be placed on the body of each copy, otherwise each copy shall be considered an independent check.
Article 523
1- The drawee alone shall bear the damage resulting from the payment of a check in which the signature of the drawer has been forged or the data contained in it have been misrepresented if the error cannot be attributed to the drawer whose name appears in the check, and each condition to the contrary shall be deemed as if it were not.
2- The drawer shall be considered at fault in particular if he does not exert in maintaining the check book delivered to him the care of the common man.
02 Branch Two - Circulation of Check and Reserve Guarantor (524-531)
01 Trading check by endorsement (524-530)
Article 524
1- A check conditional paid to a named person, whether it was explicitly stipulated in the order's condition or not, is negotiable by endorsement.
2 - The conditional check is paid to a named person, and the phrase “not for commanding” is written in it or any other phrase in this sense, it is not permissible to trade it except by following the provisions of the assignment of right.
3- Endorsement may be made even for the drawer or any other obligor, and they may endorse the check again.
Article 525
Endorsement for the drawee is considered as a clearance unless the drawee has several establishments and the endorsement takes place in favor of an establishment other than the one on which the check was drawn.
Article 526
1- The endorser guarantees the payment of the check, unless he stipulates otherwise.
2- He may prohibit its endorsement again, and in this case he is not obligated to guarantee against those to whom the check will be transferred by a subsequent endorsement.
Article 527
The holder of an endorsable check is considered to be its legitimate bearer when it is proven that he is the owner of the right to it by uninterrupted endorsement, even if the last of it is a blank endorsement. And crossed out endorsements are considered in this regard as if they were not. If after a blank endorsement, another endorsement is followed, the signatory on this endorsement is deemed to be the one who acquired the right to the check by endorsement in blank.
Article 528
The endorsement written on the bearer's check makes the endorser responsible in accordance with the recourse provisions, but this endorsement does not result in the instrument becoming a check for an order.
Article 529
If a person loses possession of a check, whether the check is for its bearer or it is subject to endorsement, the person to whom this check is issued is not required to give it up when he establishes his right to it in the manner set forth in Article 527, unless he obtained it in bad faith or committed a serious mistake in obtaining it.
Article 530
1- Subsequent endorsement of the Protesto or that occurs after the expiry of the deadline for presenting the check, only the effects of the right assignment.
2- The endorsement without history shall be deemed to have taken place before the protesto was made or that it took place before the expiry of the date of the check, unless it is proven otherwise.
3- Dates of endorsement may not be submitted, and if that occurred, it would be considered forgery.
02 Reserve guarantor (531-531)
Article 531
1- It is permissible to guarantee the payment of all or part of the amount of the check from a substitute guarantor.
2- This guarantee shall be from third parties except for the drawee, and it may also be from one of the signers of the check.
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