Due to some mistakes and legal gaps in the issuance and receipt of checks and bills, which are frequently used in the business world, various problems are encountered during the tracking of these valuable documents. While enforcement offices are struggling with millions of enforcement proceedings, creditors may pay a price higher than the amounts they are obliged to pay in collecting their receivables. the doctrine [1] and the Supreme Court decisions, may help prevent similar problems you have encountered or will encounter.
1. Failure to Investigate the Authorized Representative in Legal Entities
When it is determined in the Signature Review that the signature does not belong to the authorized representative of the company, it is decided to suspend the enforcement proceedings. In order to avoid this situation, the signature circular of the issuing company must be obtained and the authorized representative must be signed. If the company's signature circular stipulates that the company can only incur debt with two authorized representatives, the signatures of both representatives must be obtained (under the company's title).
2. Failure to Sign in Presence
In order for the debtor not to deny the signature, the signature on the promissory note must be made in the presence of the debtor.
3. Failure to Check the Signature Circular and Declaration
Especially if the price on the bill is high and the drawer is not known, the bill must be obtained by obtaining a signature declaration and comparing the signatures in the circular. Otherwise, the other party may have the opportunity to deny the signature by using a different signature.
4. The Date on the Check is the Draw Date, Not the Maturity Date
The check is a negotiable document that is paid when seen, and the date on it is the date of drawing, not the maturity date. In the case of high-amount checks, the issuing company may assign a later date to the check and change the company official who signed the check before the drawing date. In this case, since the signature on the check on the date of draw will not belong to the company official, enforcement proceedings will be suspended. Therefore, for high-amount checks, it may be a protective element to have the receivables recorded in a separate signed document.
5. Receiving a Promissory Note with Missing Elements from the Debtor
It is possible to fill in the missing elements in the check and promissory note later by the beneficiary creditor. However, in this case, it may be possible for the drawer to claim that the negotiable instrument was filled in violation of the agreement by taking a photocopy of the document. In addition, it may be possible to write the location in the drawing as an abbreviation or to stop the pursuit if a non-administrative unit is written.
6. When a promissory note is given as guarantee, "Not writing down what is given as guarantee"
In order for the guarantee record to be valid, the phrase "for guarantee" must be written in the text of the promissory note, or it must be understood from the written contract that the check is clearly referred to in this promissory note.
7. Mistake Frequently Made by the Business World
When payment is made, the bill must be withdrawn, otherwise the bill may be followed by the bona fide holder of the bill that is put back into circulation.
It is also recommended to reference the payee, amount and maturity date of the bill in bank transfers.
8. The Person Objecting on Behalf of the Legal Entity Must Be Authorized to Represent the Company
Otherwise, the objection will be valid.
9. Failure to Present a Check Due to Force Majeure
If the stolen check is presented to the bank by the holder, the check is taken into judicial custody by law enforcement forces and interpreted as force majeure. In such cases, the holder must notify the force majeure as soon as possible. As soon as the force majeure ends, submission procedures can be continued.
10. What Company Managers Make Mistakes: Double Signature
If the signatures of two company officials are required to put the company into debt, both signatures must be affixed on the company stamp. Otherwise, personal liability of the person who makes the second signature, which is not affixed with the company stamp, will arise .
12. Multiple Beneficiaries Listed in the Promissory Note
It is possible to list more than one beneficiary in the promissory note; each beneficiary can only pursue his or her share of the amount written in the promissory note , but cannot claim the entire amount.
13. Signature on Blank Paper, Blank Check - Promissory Note
Since it is legal to issue an open promissory note, a written document is required to prove that such a promissory note was filled in violation of the agreement. Therefore, signing a blank piece of paper and especially not entering the amount will lead to risks that are difficult to overcome.
15. Leaving the Quantity Section in Words Blank in the Promissory Note, Even though the Amount is Written in Numbers
In this case, writing a higher amount on the bill and abusing this situation through legal means may come to the fore. To avoid this situation, it is recommended to write the amount in both numbers and words and not leave any spaces in the amount written in words.
16. Receiving Checks and Promissory Notes Belonging to Companies for which Bankruptcy has been Postponed or Not Prosecuted
If you do not know the company from which you received the check or promissory note, you should investigate whether there is a ban on prosecution or a bankruptcy postponement decision issued by the trade registry office or banks about these people. Otherwise, the proceedings will be stopped upon the objection of the debtor company.
July 2013
For More Detailed Information:
| Hunting. I. Can Çayırpare | email: can.cayirpare@cvghukuk.com | Tel: 0532 474 30 35 |
| Hunting. B. Güven Cem | email: guven.cem@cvghukuk.com | Tel: 0533 740 86 28 |
| Hunting. Volkan Önkibar | email: volkan.onkibar@cvghukuk.com | Tel: 0535 662 61 06 |
[1] Frequently Made Mistakes in Bills of Exchange – Kemal Karanfil – Adalet Publishing House
