Like in the past we will deal with checks in this short article.
I will divide this article in sections. Each section will be accompanied by a picture of a real check with explanations on it in order to make it easy to understand how a check should be written in a safe way.
Please remember: Whatever you know regarding checks – forget it because in Israel we have a different law.
The idea is to avoid your check been passed on to a third party. You want that same person you are giving the check to deposit the check in his/her/company own personal account. This is a final proof you have paid for whatever you received in exchange.
Sometimes a receipt is not enough.
In a rental relationship you must have a very good record. Keep every print from the bank showing that the check was actually paid/cashed to the landlord. This will prevent any further legal disputes regarding payment.
Avoid additions in the checks. Don’t add anything in your handwriting. Only the essentials you are supposed to fill in when issuing a check.
Section 1:
The date format in a check should be: Day / Month (name or number of the month) / and Year (2 or 4 digits)
Never issue an “empty” check. Always write the name of the person or the company and don’t agree to give the check to a third party. For example:
Mr. Doe is your landlord and he asks you to write the check to Mrs. Doe or Mr. Smith. The answer should be: “I am sorry but my lawyer doesn’t allow me to do this…”
Section 2 and 3:
This is the PAY ONLY section or the “Mutav Bilevad”.
The real and simple meaning is that only that person in the check can use the che3ck. He/she will not be able to pass it on to a third party and this is what you need.
If in addition to the words “Mutav Bilevad” there are 2 lines (cross) the person will have to deposit the check in HIS/HER account. It is not possible to deposit this check in a third party’s account or cash it at the bank’s cashier.
If the bank as for your request adds some extra as in the example, no corrections will be allowed. The amount and the date can be corrected but the cross and the “Mutav Bilevad” cannot be erased or modified.
There will be no extra charge from your bank in order to have this special “limitation” in the check. Better to have it. If you make a mistake when writing a check, don’t make corrections. Just write a new one.
Section 4:
The “Mutav Bilevad” is a good protection but “Lo Sachir” as shown in section 7 is the best way to protect you. When you add these words with a cross and a name on the check, there is no way the person can pass the check on to anyone else.
Section 5:
The amount, the date and the name of the person can all be in English. I advise you that the name of the person or company will be in Hebrew.
The date is not in the American format but European. DD/MM/YY.
Section 6:
In order to secure the written amount in the check, you can use the format showed in this section but it is not a must. There is no need to write the word SHEKEL but please note that in Israel it is possible to have a “regular account” (“Over Veshav”) in dollars. The checks in this account will appear in English and in DOLLARS and paid in dollars but the fees are higher.
Section 7:
Here in this section you will find the best way to write a check in Israel today.
The signature:
Try to have a distinguished signature in the check. Something hard to be forged.
If you lose a check or a check was stolen from you or just disappeared, go immediately to the nearest police station and report it.
If someone forges your signature and somehow the bank pays the check (which happens), you will probably be sued and probably win but legal costs will be high.
Using these “securities” to protect yourself from a contract:
I was asked if it is possible to better protect a landlord from using a check given as security at his own discretion. Tenants are afraid that the landlord may deposit the check if he/she thinks you as a tenant have caused any damage or not paid rent on time.
The answer is very simple: You can’t prevent the landlord from depositing the check. The only way to protect yourself is by having a good lease contract but not to use these “defenses” in the check.
If you cancel a check or the check bounces, the landlord will certainly open a file against you in the “Otsaa La foal”.
This procedure will cost him a very small amount but cost you a small fortune and as you may already know, there is no defense in the “Otsaa La foal”. All you can do is hire a lawyer for money and ask special permission to defend yourself. It may be granted or denied. The legal costs will be high for you.
Confusing?
Very confusing even for lawyers.
The best way is to ask if you have any doubts. Ask a lawyer or ask at your bank (they are super protective of their own interests and not yours).
