Electronic Clearing System:
E-clearing: A set-off by using electronic record and scanned image of a check.
Drawer: Account holder issuing a check.
Drawee Bank: The bank whose name appears on the check and in which the drawer holds an account linked to a check issued.
Payee/Beneficiary: A natural or legal Party to whom a check is made payable.
Payee/Beneficiary Bank: The bank submitting a check for set-off through E-Clearing System.
Controls on Cleared Checks:
- The date should be written in figures on the check in a full and accurate manner as the date is deemed a fundamental element of the check.
- 2-The bank should not accept the check, which contains two places for the date.
- 3-All banks should not conduct any erasure, alteration or cancellation on the checks submitted for collection and should return them, unaltered, to the customer along with a paper indicating the reason for return.
- 4- Banks are prohibited from paying or dealing with checks with two dates, as well as the collection of these checks amounts by set-off.
- 5- In the event where the amount of the check is written in figures and letters, the amount written in letters shall prevail in case of dispute (Trading Act No. 27/2006, with effect from 13/05/2007)