UAE Commercial Transactions Law — articles 501–600

1. The renter shall use the safe deposit box for the usual purposes, and shall pay the agreed-upon rent on the maturity dates. 2. The renter may not place in a safe deposit box any items detrimental to its safety or to t…

1. Unless otherwise agreed, when a safe deposit box is rented out to several renters, any one of them may use it separately. 2. Where a renter dies, the bank may only, after becoming aware of the death, give permission f…

The bank shall keep a record of dates and times when the renter opens the safe deposit box.

Where the bank finds out that the safe deposit box is endangered or that it contains dangerous items, it shall forthwith notify the renter to report to the bank to either empty the box contents or remove the dangerous it…

1. Where the renter fails to pay the box rent on the due dates, the bank may, after the lapse of (15) fifteen days, unless further periods are agreed upon, from the date of a notice served to the renter requiring payment…

The bank may withhold the contents of the safe deposit box and shall have lien over the price generated from the sale of its contents to collect the rent and the accrued expenses.

1. A precautionary and executory attachment may be levied at the contents of the safe deposit box. 2. The attachment shall be levied by notifying the bank of the contents of the writ by virtue of which such attachment is…

Except for the cases provided by the Law, the bank may open a rented safe deposit box or empty its contents only with the permission of the renter and in his presence, or in execution of a judgment, order or decision iss…

Commercial papers are written instruments in forms prescribed by law which represent a right to a specified sum of money payable at sight, after a fixed period or at a determinable time. They are negotiable by commercial…

Commercial papers shall include bills of exchange, promissory notes, bearer instruments, cheques and other papers drawn up for commercial activities, which the customary practice generally accepts as a payment instrument…

A bill of exchange (the drawing instrument) is a commercial paper whereby a drawer draws an order for the payment of a specific sum from the drawee, at sight or on determined or determinable date, for the order of the pa…

A promissory note is a commercial paper whereby its issuer undertakes to pay, at sight or on a determined or determinable date, a specific sum to the order of another person (the payee).

A bearer instrument is a commercial paper whereby its issuer undertakes to pay a sum to the order of bearer, at sight or on a determined or determinable date.

A cheque is a commercial paper containing an order issued by the drawer to the drawee bank to pay on the day indicated therein, as the date of issue, a specific sum to the order of a third person, namely the payee or bea…

A bill of exchange shall contain the following particulars: 1. The words "Bill of Exchange" written in the body thereof and in the language in which the bill is written. 2. An unconditional order to pay a fixed sum of mo…

An instrument which does not contain any of the particulars mentioned in Article (515) hereof shall be deemed a bill of exchange only in the following cases: 1. Where the date of maturity is not mentioned in the bill, it…

1. The signature on a bill of exchange shall be made in writing or by thumb-print. 2. Two witnesses shall testify that the thumb printer has affixed his thumb before them while being aware of the contents of the instrume…

1. Where the bill sum is written in letters and in numbers at the same time, the sum indicated in letters shall prevail in case of discrepancy. 2. Where the sum is written several times in letters or in numbers, the less…

1. A bill of exchange may not contain more than one sum. 2. Where a bill of exchange is drawn in a currency having a nomenclature common between the countries of drawing and payment, without indicating the intended curre…

1. A bill of exchange may be signed by more than one drawer. 2. A drawer may authorize a third party to sign the bill of exchange on his behalf, in which case, the third party shall indicate his capacity upon signing the…

1. No interest may be stipulated on the sum mentioned in the bill of exchange, unless it is made payable at sight or after a specific period from the time of sight. 2. The interest rate shall be stipulated in the bill it…

1. A person who signs, without authorization, a bill of exchange on behalf of another person shall be personally liable thereunder. If he discharges said liability, the rights which would have devolved to the person on w…

Where a bill of exchange bears forged signatures, or signatures of fictitious persons, or signatures of persons who have no capacity to incur liability, or where the signatures do not bind the signatories thereof for oth…

Obligations of a person with diminished capacity, who is not authorized to engage in commerce, and an incapacitated person, arising from affixing their signatures to a bill of exchange, in any capacity whatsoever, shall …

1. A bill of exchange may be drawn to the order of the drawer himself. 2. It may be drawn on its drawer. 3. It may be drawn to the account of another person.

1. The form of a bill of exchange shall be governed by the Law of the state where it is drawn up. 2. The capacity of the obligor of a bill of exchange shall be determined according to the law of his country, and where su…

A bill of exchange may be made payable in the place of residence of another person, whether in the place where the drawee's place of residence is located or in any other place.

1. A drawer of a bill of exchange shall guarantee its acceptance and payment. 2. A drawer of a bill of exchange may further stipulate that he shall be exempted from the guarantee of acceptance; however, any stipulation f…

1. Every bill of exchange shall be negotiable by endorsement, even if it does not state that it is drawn to order. 2. A bill containing any phrase by the drawer indicating that it is not to order may be transferred only …

1. Without prejudice to the provisions of Article (534) hereof, the Endorsement shall be unconditional, and any condition attached to the Endorsement shall be null and void. 2. A partial Endorsement shall be null and voi…

1. An Endorsement shall be written on the bill of exchange itself or on a paper attached thereto, and shall be signed by the endorser. 2. An Endorsement may be signed only by the endorser (blank endorsement). In order fo…

The Endorsement shall transfer to the endorsee all rights arising from the bill.

In case of a blank indorsement, the bearer shall: 1. Fill out the blank by writing his name or the name of another person; 2. Re-endorse the bill in blank or to another person; or 3. Deliver the bill to another person wi…

1. The endorser shall guarantee the acceptance and payment of the bill, unless otherwise stipulated. 2. The endorser may prohibit the re-Endorsement of bill, and in such case, he shall not be liable for the guarantee vis…

The possessor of a bill of exchange shall be its legal bearer when he proves that he is the holder of right thereto by means of uninterrupted endorsements, even if the last one is in blank. Erased endorsements in this re…

Where a person loses possession of a bill of exchange, the bearer shall not be bound to surrender it if he proves his right thereto in accordance with the preceding Article, save where he has acquired it in bad faith or …

Without prejudice to the provision of Article (524) above, a debtor who is sued for a bill of exchange may not invoke against its bearer the pleas based on his personal relationships with the drawer or with one of its pr…

1. Where the endorsement includes the phrase "value for collection" or "value for receipt" or any other term indicating the procuration, the bearer may exercise all the rights arising from the bill of exchange, including…

1. Where the endorsement includes the phrase of "value for security" or any other expression purporting to the pledge of the right established by the bill of exchange to the endorsee, the bearer may use all the rights ar…

1. An endorsement after the date of maturity shall produce the same effects as an endorsement prior to such date; however, an endorsement subsequent to a non-payment protest or after the expiry of the time limit set by t…

An endorsement may not be predated. A predated endorsement shall be considered forgery.

The drawer of a bill of exchange, or the person for whose account it is drawn, shall provide the drawee with funds for its payment. A drawer acting for another person's account is personally liable, solely towards the en…

The consideration for payment shall be deemed available when, on the maturity date of the bill of exchange, the drawee is indebted to the drawer or to the person who ordered the drawing for a sum which is due and at leas…

1. The acceptance of a bill of exchange shall be considered a presumption that the consideration required for payment is available with the acceptor. This presumption shall not be challenged as to the relationship betwee…

1. The title to the consideration for payment shall pass ipso jure to the consecutive bearers of the bill of exchange. 2. Where the consideration for payment is less than the sum of the bill of exchange, the bearer shall…

The drawer shall, even if he filed a protest after the statutory time limit, deliver to the bearer of the bill of exchange the documents required to obtain the consideration for payment. Where the drawer is declared bank…

Where the drawer is declared bankrupt, the time limit shall lapse and the date set for payment of the value of the bill of exchange shall fall due. The bearer – not the other creditors of the drawer - shall be exclusivel…

1. Where the drawee is declared bankrupt and the consideration for payment is a debt owed by the same, such debt shall be included in the assets of the bankruptcy. 2. Where the drawee who is declared bankrupt has possess…

1. Where several bills of exchange have been drawn on one consideration insufficient to accommodate them all, the priority in recovering their value shall be given to the order of the dates of their drawing. 2. Where the…

The holder or possessor of a bill of exchange may, from the time it is drawn until maturity, present it to the drawee at his place of residence for acceptance.

1. The drawer of a bill of exchange may stipulate that the same be presented for acceptance on a specific date or without specifying any date. 2. The drawer may stipulate that the bill be not presented for acceptance, un…

A bill of exchange that falls payable after the lapse of a certain period from sight must be presented for acceptance within one year form its date. The drawer may shorten or extend such time limit, and every endorser ma…

1. The drawee may request that the bill of exchange be re-presented for acceptance on the next day following the first presentation; however, persons concerned may not allege that such request was rejected, unless it has…

1. The acceptance shall be written on the face of the bill of exchange with the word "accepted" or any other phrase having the same meaning, and shall be signed by the drawee. 2. The mere signature of the drawee on the f…

1. The acceptance must be unconditional; however, the drawee may restrict it to part of the sum of the bill of exchange. 2. Any modification to the particulars of the bill of exchange introduced to the wording of the acc…

1. Where the drawer stipulates on the bill of exchange for a place for payment, other than the drawee's place of residence, without naming the person to whom payment is to be made, the drawee may designate the name when …

1. Where the drawee accepts the bill of exchange, he shall be bound to pay its value on the maturity date. 2. In the event of non-payment, the bearer may, even if he is the drawer himself, have recourse against the drawe…

1. Where the drawee crosses out its acceptance stated on the bill of exchange before returning it, the acceptance shall be deemed rejected, and the crossing out shall be deemed to have been occurred before the bill of ex…

1. Payment of all or part of the amount of a bill of exchange may be guaranteed by an aval. 2. Such guarantee may be given by any person, including a person who has signed the bill.

1. The aval shall be written on the bill of exchange itself or on a paper attached thereto in such wording as to indicate being an "aval" and shall be signed by the giver of the aval. 2. Such aval shall be established by…

1. The giver of an aval is bound as the person for whom he has become guarantor. 2. The liability of the giver of an aval shall be valid even if the obligation guaranteed is void for any reason whatsoever, other than a d…

1. Aval may be issued on a separate paper indicating the place where it is made. 2. The giver of an aval who has given the collateral on a separate paper shall be liable only vis-a-vis the person in whose favor the aval …

1. A bill of exchange shall specify one maturity date. 2. The drawer may fix maturity: a. at sight; b. a fixed period after sight; c. on a fixed date; or d. a fixed period after the date of drawing. 3. A bill specifying …

1. A bill of exchange that falls payable at sight shall be payable once presented, and shall be presented for payment within one year of the date of being drawn up. The drawee may shorten or extend such time limit but th…

1. The maturity date of a bill of exchange payable after a fixed period after sight shall be calculated as from the date of acceptance or from the date of protest. 2. Where no protest is made, the undated acceptance shal…

1. Where a bill of exchange is made payable after one month or more after its date of sight, it shall fall due on the corresponding date of the month during which payment is to be made. In the absence of a corresponding …

1. Where the bill of exchange is payable on a specific date in a country where the calendar is different from that of the country of issue, the date of maturity shall be deemed as having been determined according to the …

1. The holder shall present the bill of exchange for payment on its maturity date. 2. Presentment to a legally recognised clearing house is equivalent to presentment for payment.

1. Where a drawee pays off the bill of exchange, he may recover it from the bearer duly signed to the effect of payment. 2. The bearer may not refuse partial payment. 3. In the event of partial payment, the drawee may re…

1. The bearer of a bill of exchange may not be compelled to receive its value before the maturity date. 2. Where the drawee pays off the value of the bill of exchange before the maturity date, he shall bear any consequen…

Any person who pays off the value of a bill of exchange on the maturity date without valid objection shall be discharged, unless he had committed fraud or gross fault. Such person shall satisfy himself with the regularit…

1. Where payment of the value of the bill of exchange in the United Arab Emirates is to be made in a currency that is not officially traded therein, the payment shall be made in the national currency according to the rat…

1. Where a bill of exchange is not presented for payment on the date of maturity, any debtor thereof may deposit its value with the treasury of the court within whose jurisdiction the place of payment is located. Such de…

Objection to the payment of a bill of exchange or refusing to pay it shall be acceptable only in case of loss or bankruptcy of its bearer.

1. Where a non-accepted bill of exchange, which is part of a set, is lost, the person entitled to its value may claim payment by virtue of one of its other copies. 2. Where a bill of exchange is drawn up in several copie…

A person who has lost a bill of exchange, whether accepted or not, and is unable to present one of the other copies, may request the chief judge of the competent court for an order to have its value paid, provided that h…

1. In the event of refusing to pay the value of a lost bill of exchange after claiming its payment, pursuant to the provisions of the preceding two Articles, its owner shall document such refusal in a protest to be made …

Payment of the value of a bill of exchange on the date of maturity, based on a court order in the cases referred to in Articles (575) and (576) above, shall discharge the debtor from liability.

The obligation to provide a giver of an aval, as set forth in Articles (575), (576) and (580) of this law, shall lapse after (3) three years if no claim or action is filed within such time limit.

1. The owner of a lost bill of exchange may obtain a copy thereof by referring to his preceding endorser, who shall assist and authorize him to use his name in order to claim from the previous endorser, and so on from on…

If a bill of exchange is not paid at maturity, the holder may have recourse against the endorsers, the drawer and the other parties liable on the bill.

1. A holder may have recourse against obligors of a bill of exchange prior to the date of maturity in the following cases: a. Total or partial refrainment from acceptance; b. Bankruptcy of the drawee, whether he accepted…

1. Where the maturity date of a bill of exchange is a public or bank holiday, the payment thereof may be claimed only on the following business day. 2. Similarly, no action may be taken in relation to the bill of exchang…

Refrainment from acceptance or payment of the bill of exchange shall be proved by a protest for non-acceptance or a protest for non-payment, which shall be executed through the competent Notary Public; provided that one …

1. The protest shall contain a true copy of bill of exchange with all the particulars stated therein, as to its acceptance, endorsement, giver of an aval, payment of its value, if applicable, and any other particulars. T…

The competent notary public shall record day-by-day all the papers related to the protest in chronological order in a special register with numbered and duly annotated pages.

The competent Notary Public shall also during the first (10) ten days of every month send to the competent Commercial Registry office a list of protests for non-payment executed during the previous month. The competent C…

1. A protest for non-acceptance shall be made within the time-limits set for presentation of the bill of exchange for acceptance. Where the first presentation for acceptance, pursuant to Article (552), falls on the last …

No instrument may substitute the protest except in the cases stipulated by the Law.

1. Where the drawee suspends payment, whether he has accepted the bill of exchange or not, or in case an attachment of no avail is levied on his property, the bearer of the bill of exchange may have recourse against the …

1. The bearer of a bill of exchange shall notify its drawer and his endorser of the non-acceptance or non-payment thereof within the (4) four business days following the date of protest, or the date on which it is presen…

1. The drawer, every endorser or giver of an aval may exempt the bearer from the obligation of making the protest for non-acceptance or non-payment upon recourse if it is stipulated in the bill of exchange for (recourse …

1. Persons who have committed themselves under the bill of exchange shall be jointly liable towards its bearer. 2. The bearer may have recourse against such obligors, separately or jointly, without having to observe the …

1. A bearer of a bill of exchange may claim from the person having a right of recourse against him the following: a. The original sum of a non-accepted or non-paid bill of exchange, along with the agreed interest, if app…

Any person having paid the value of the bill of exchange may claim from the obligors committed towards him to reimburse him the sum paid and the expenses incurred.

Courts may not grant a time limit for paying the value of the bill of exchange or to undertake any action related thereto, except in the cases stipulated by the Law.

1. Any obligor who, by way of recourse, is claimed or is likely to be claimed to pay a bill of exchange, may, if he effects the payment, request that the bill, together with the protest and a receipt for the sum paid, be…

In case the recourse is exercised after partial acceptance, the person who has paid the non-accepted part of the value of the bill of exchange may require its bearer to prove such payment of the bill itself and deliver h…

1. The bearer of a bill of exchange shall forfeit his right, pursuant to the rules of the Exchange Law, to have recourse against the drawer, endorsers and other obligors, except the acceptor, upon the expiry of the time …

1. Where due to a force majeure event a bill of exchange is not presented or protested within the prescribed time limits, such time limit shall be extended. 2. The bearer shall, without delay, notify his endorser of the …