Legal Challenges of the Issuance of Cheque Act

Cheque is one of non-cash payment instruments that for various reasons it has not been able to perform its desired function. The most important of these reasons are the lack of an effective legal basis, and the lack of comprehensiveness and transparency of existing regulations. So that, frequent amendments of Iranian issuance of cheque Act, have not been able to meet this important need. Amendments to the cheque Act in 2018 are an important forwarding step in strengthening the validity of cheques and reducing the systemic and credit risks of this payment instrument, but it has not been able to resolve some of the pre-existing legal issues of the check. In addition, the anticipation of an electronic system to perform part of the cheque’s issuance and transfer process, despite its advantages, presents new legal issues and challenges. In this article, some of the issues arising from the new cheque regulation’s requirements of its issuance and transfer have been studied in a descriptive-analytical method and by comparative law studies and using the international experiences, we provide appropriate solutions. According to results of this research, requiring the issuer of cheque to register issuance of cheque in electronic system is a legal duty that its non-compliance dose not negate the rights of holder of cheque as a negotiable instrument and so on,, requiring the holder to register transfer of cheque in that system, only has the effects of transfer of cheque without effect of endorsement and dose not add the transferor to obligors of commercial paper unless he has signed the behind of cheque.