Are there new laws on security cheques and their encashment or use in civil cases?

Thank you for reaching out with your query regarding security cheques!

There have been recent developments in the UAE legal landscape concerning security cheques, particularly in relation to how banks and other entities can enforce them.

The specific circumstances under which a security cheque can be encashed or used as the basis for a civil case have been subject to changes in both banking practices and legal interpretations.

Dear enquirer,

The bank can encash and file a civil case under certain circumstances.

The terms and conditions of your agreement with the bank will specify when and how the security check can be encashed. Moreover, it will be the discretion of the court as well.

For further assistance, kindly drop your WhatsApp number.

Dear Questioner,

The bank is not permitted to prevent the cashing of any due check, whether it is a security check (guarantee) or otherwise.

If the check is presented to the bank at the time of its maturity and meets the conditions for its withdrawal, the bank is obligated to cash it.