Legal Highlights

Account Registered Checks

An account registered check is a check whose holder or drawer may require that it not be paid in cash by placing on it the expression "account registration" or any other expression which communicates the same meaning.

As such, existence of such an expression on a check means that the drawee shall only have to settle the check amount by means of certain written limitations such as on an account registration, bank transfer or clearance. Such limitations shall be considered the same as a check payment (Article 113, Commercial Papers Law, 1383H)       

If the drawee fails to observe the foregoing provisions, the drawee shall be responsible to compensate the damage not exceeding the check amount. (Article 113, Commercial Papers Law, 1383H)