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BC-5.1.1

The purpose of the contents of this section is to set out regulations relating to the system of penalising any person, whether natural or corporate in form, (referred to as a 'customer' in this chapter) whose cheque is

(a) presented for payment, but is returned due to insufficient funds being available on his current account, where,
(b) in the opinion of the FCB on whom the cheque is drawn, such cheque has been issued by the customer in bad faith.

Cheques falling within this system are referred to as 'dishonoured cheques'. Due regard must be given by FCBs to the general provisions of Bahrain Law regarding joint accounts, partnership accounts and accounts in the name of corporate entities, as well as to the customer mandate in each case, to determine how such accounts may be dealt with for purposes of the Regulation in this chapter.