Law No. 23 of 2010 regarding Commercial Activity 

Page 4 of 13

Book Four Banks operations 

Section one Deposit 

Article 701 

Consignment operation and its effect 

The bank shall gain the ownership of the money deposit with it. It shall have the right to dispose thereof. 

It shall be under obligation to return thereof in the same kind upon request of the consignor or on maturity agreed upon or after a previous warning to be defined by the contract or the tradition; the payment and withdrawal operations shall be effected at the office of the bank in which the relation was established unless agreed otherwise. 

Article 702 

Entry of operations 

The bank shall open an account for the consignor in which the operations to be effected between them or the operations between the bank and the third party to the credit of the consignor shall be entered.

Article 703 

Consignorís right to withdrawal 

The money deposit contract shall not result is the consignorís right to withdraw amounts from the bank more than the deposited amount. 

If the bank effected operations resulting in indebtedness of the consignorís balance, the bank must immediately notify him to adjust his position. 

Article 704 

Deposit return 

The money deposit shall be returned once requested unless otherwise agreed upon, and the depositor has at any time the right to dispose of the balance or a part thereof. 

Such right may be dependent on previous notice or on certain maturity. 

If the depositor is dead, the deposit shall continue existing according to contract condition unless the successors claim for its recovery before the maturity. 

Article 705 

Account statement 

The bank shall send an account statement to the depositor at least once every three month, unless the tradition or the agreement provides for otherwise. 

The statement should include a copy of the account and the balance amount after its last turnover. 

The depositor shall have the right to make objection to what is set out in the statement within one month from the date of receiving the same. If such period is expired without objection, the depositor shall be considered as having agreed to what is set out in the statement. 

In all the cases, no application for correction of the account shall accepted even it was based on an error on omission or repletion as regards the entries having more than five years unless the depositor has notified the bank within such period of non-receiving any statement of his account.

Article 706 

Saving book 

The saving account shall be open upon request of its owner. If he is minor, the account shall be open upon request of his legal guardian or his legal deputy. 

If the bank issued a deposit book for savings, it should be in the name of the person to whom the book is issued. The payments and withdrawal shall be written down therein. The data set out in the books which is signed by the bank official shall be an evidence in confirming the data mentioned in the relationship between the bank and the person to whom the book is issued. 

Any agreement to the contrary shall be null and void. 

If the savings account is opened in the name of a minor, he and any other person shall have the right to make a deposit in this account. The minor who completed fifteen years of age shall have the right to withdraw the reform unless his legal guardian or legal deputy raised objection thereto. 

Article 707 

Clearing in multiple accounts 

If the relations between the bank and the holder of the current account were multiple or on the basis of a number of accounts even with various currencies, clearing shall be reflected on the credit and debit balances unless otherwise agreed. 

Article 708 

Joint account 

The bank shall have the right to open a joint account between two or more person equally unless there is an agreement to the contrary, with consideration of the following provision:- 

1. The joint account shall be open by all the holders thereof or by one person holding a power of attorney issued by the account holders and certified by the competent authorities and the agreement of the account holders in withdrawal shall be taken into consideration. 
2. If attachment is inflicted on the balance of one of the joint account holders, then the attachment shall be applied to the attachÈ share of the account balance from the date of informing the bank of the attachment. The bank shall stop withdrawal from the joint account in as much as to be parallel to the attached share. The partners or their representatives shall be informed of the attachment within a period not exceeding five days.
3. When effecting clearance between various accounts regarding one of the joint account holders may not enter this account in clearance unless by a written consent of the remaining partners. 
4. On death or disqualification of one of the joint account holders, the remaining holders shall notify the bank thereof and of their desire in continuation of the account within a period of not exceeding ten days from the date of the death or disqualification. The bank shall stop withdrawal from the joint account until the successor and the guardian of the disqualified person is nominated. 
5. If one of the joint account holders notifies the bank in writing of existence of a difference between them, the bank should freeze the account until the difference is settled satisfactorily or judicially. 

Section Two Deposit of financial papers 

Article 709 

Use of financial papers 

The bank may not use the financial papers deposited with it or exercise the rights arising out thereof unless in the interest of the depositor and upon his written request. 

Article 710 

Keeping of papers 

In keeping the deposited papers, the bank shall exert the attention of the waged depositor and any agreements releasing the bank from exertion of this attention shall be null and void. 

The bank may not refrain from possession of these papers unless by permission of the judicial authority. 

The depositor shall undertake to pay the wage agreed upon or which shall be fixed by the practice, in addition to the necessary expenses.

Article 711 

Interests receiving 

The bank shall undertake to receive the interest, profits of the paper and itís due value and any other amount due by its reason unless otherwise agreed. The amounts to be received by the bank shall be put at disposal of the depositor and shall be registered in his account. 

The bank shall perform any process to be necessary for maintaining the rights related to the paper as receipt of bonds to be granted to it free of charge and as offering thereof for replacement or addition of new profits to it. 

Article 712 

Notice of depositor 

The bank shall notify the depositor of any order or right related to the paper and entails his approval or shall depend on his option if the instructions of the depositor did not timely reach, the bank must dispose of the right in as much as to generate benefit to the depositor and the depositor shall bear the expenses of the operations performed by the bank, in addition to the commission. 

Article 713 

Recovery of the papers 

The bank shall undertake to return the deposited papers once requested by the depositor with consideration of the time to be taken for preparation of the papers for returning. 

The return shall be in the place where the deposit was effected and the bank shall undertake to return the deposited papers themselves unless the two parties agreed or the law authorized return of the similar. 

The return shall be effected to the papers depositor or to the agent by special agency or to his successor even if the paper contains the evidence of its ownership by third party. 

Article 714 

Entitlement lawsuit 

If a person claims for entitlement of the deposited papers, the bank should immediately notify the depositor and refrain from returning the papers to him until the dispute is resolved satisfactory or judicially.

The claimant of the paper entitlement should bring his lawsuit within thirty days from the date of claim otherwise it shall be considered null and void. 

Section Three Rental of lockers 

Article 715 

Definition 

Lockers rental is a contract under which the bank undertakes against a fee to put a certain locker at the disposal of the lessee for utilizing thereof for a certain time. 

Article 716 

Bank responsibility 

The bank shall bear the responsibility towards the client for fitness of the private lockers place for the purpose for which they have been prepared and for its guarding as well for freedom of the lockers from defects and it may not negotiate its responsibilities except by proving the lessee error or the force majeure. 

Article 717 

Locker key 

The bank shall deliver the Locker key to the lessee, and the bank only has the right to keep a copy thereof. The key shall remain a property to the bank and should be returned bank to it on expiry of the rental. 

The bank may not permit anyone other than the lessee or his agent to open the locker. 

In case of lesseeís death, the bank may open the locker and deliver its contents to the successorís agent or the person authorized by the court to this effect. Delivery shall be effected under a written minute.

Article 718 

Unadmissibility of locker assignment 

The lessee may not rent the locker or a part thereof or assigns the rental to a third party unless otherwise agreed. Also he may not put in the lockers object that threatening its safety and the safety of the place where it existing. 

If the locker became threatened by a danger or proved that it contains dangerous object the bank must immediately notify the lessee to present for discharging or withdraw the dangerous objects there from. 

If the lessee did not present on the appointed date, the bank may claim the competent court to issue an order on petition for permission to open the locker and discharging or withdrawing the dangerous objects there from the presence of the person to be appointed by the court to this end. 

If the danger is current, the bank may, at its risk, open the locker and discharging it or withdraw the dangerous objects therefrom without notice or permission of the judge. In all the cases a minutes of the fact shall be executed in which the locker content shall be written down. 

Article 719 

The joint locker 

If the locker is rented to a number lessees no one of them shall have the right to use it alone unless otherwise agreed. 

In case of death of the lessee or one of the lessees, the bank, after having informed of the death, may not give permission for opening the locker except by agreement of all the concerned persons or by a resolution of the chief of the court of the first instance. 

Article 720 

Contract cancellation 

If the lessee does not pay the locker rent after fifteen days from payment warning, the contract shall be considered automatically cancelled without need to judicial judgment. The bank shall notify the lessee to present for opening and discharging its contents.

Article 721 

Contract expiry 

If the contract term is expired or considered cancelled, the bank may request permission of the summary judge to open the lockers, after warning the owner and after expiry of two years from the date of that warning. The warning may be by registered mail accompanied with acknowledging receipt. 

The opening shall be done in presence of a notary public to be nominated to this effect with taking of the precautions which the distract judge deems appropriate. 

The district judge may order for keeping the objects existing in the locker by depositing its contents with the bank or with a custodian to be nominated to this end. He may order also for sale of a part of them to a certain extent sufficient for fulfillment of the bank rights to rent and expenses. 

Article 722 

Locker confiscation 

The locker may be confiscated. The confiscation shall be by authorization of the bank with statement whether a locker shall be rented to the person on whom the confiscation is executed. If it decided so it must prevent the detained person from entry to the locker place. A copy of the confiscation minute containing statement of the deed under which the confiscation is effected shall be left to the bank. The locker lessee shall be notified also of the confiscation minutes. 

If the confiscation is precautionary, the lessee may request the court of the first instance to lift the confiscation or to authorize him to take some contents of the locker in presence of the person to be debuted by the court to this end. 

If the confiscation is executive, the execution process server shall, after warning the lessee, open the locker compulsorily after depositing the expenses of its opening and restoration by the confiscator. 

The locker contents shall be sold according to the procedure set out in the code of procedure.

If the lessee is absent and the locker contains document or instruments, the bank must keep them under its protection sealed with process serverís and bankís stamp until requested by the lessee or his successors. If the lessee or his successors did not come to receive the papers or the documents during one year, the bank should present the matter to the judge of the summary matter to decide what he deems appropriate in their respect. 

The confiscator shall pay to the bank an amount sufficient for ensuring the locker rented during the confiscation period. 

Article 723 

Notice to the locker lessee 

Notice to the locker lessee shall be valid if addressed to him in the address assigned by the bank. 

Section Four Bank transfer 

Article 725 

Definition 

The bank transfer is a process under which the bank transfers a certain amount to the beneficiary upon a written order in one of the following modes: 

1. Transfer of a certain amount from one person to another each have an account with the same bank or with two different banks. 
2. Transfer of a certain amount from one account to another, both opened the name of the transfer order with the same bank or with two different banks. 
3. Transfer of a certain amount from one person to another either of themor both did not maintain a bank account. The conditions of the order issuance shall organize the agreement between the bank and the order; however the money order shall not be to its holder. 

If the money order beneficiary is authorize to transfer the value to the credit side of another person account, his name should be mentioned in transfer order. 

Article 726 

Direction of the dispute 

If the transfer is effected between two or more branches of the bank or between two different banks, any dispute arising out of the third party in respect of the value should be directed to the branch or the bank where there is an account of the beneficiary. 

Article 727 

The amount object of transfer 

The order of transfer on an amount entered actually in account of the transfer order or on an amount to be entered in this amount shall be recovered during a period to be assigned in advance by agreement of the transfer ordered with bank. 

Article 728 

Notification of the transfer 

It may be agreed that the beneficiary himself shall proceed with transfer order to the bank instead of notifying it of the transfer order. 

Article 729 

Retracting the transfer order

The ownership of the transfer shall pass to the beneficiary at the time of itís entry on credit side of his account, the order may repeat the transfer order until such entry is executed. 

If it is agreed that the beneficiary himself shall proceed with transfer order to the bank, then the orderer may not repeat the transfer order with consideration of provision of Article 734 of this law. 

Article 730 

Debt and its guarantees 

The debt which the transfer order is issued for its payment shall remain existing with its guarantees and attachments until the value is actually entered on the credit side of the beneficiary account. 

Article 731 

Insufficiency of the balance 

If the balance of the order is insufficient and the transfer order was directly addressed to the bank from the transfer orderer, the bank may refuse its execution provided that it shall immediately notify the orderer of this refusal. But if the transfer order is submitted by the beneficiary, the bank shall enter the partial balance to its credit or rejection thereof by the beneficiary.

The orderer shall have the right to disposal of the partial balance if the bank refused to execute the transfer order or the beneficiary rejected entry of the partial balance according to the two previous paragraphs. 

Article 732 

Distribution of the balance 

If a number of beneficiaries proceeded at one time to the bank, and the value of the transfer orders which they hold exceeds the ordererís balance, the bank should have the right to reject execution of all the transfers or distribution of such decreasing balance between the beneficiaries in proportion to their rights. 

Article 733 

Distribution appointed date 

The distribution referred to in the precious article may not be effected unless on the first working day next to the submission day. The provision of the second and third paragraph of the article (731) shall apply to this case. 

Article 734 

Beneficiary bankruptcy 

If the beneficiary declared his bankruptcy, the orderer may suspend execution of the transfer order, even if the same is received by the beneficiary himself. 

The declaration of the orderer bankruptcy shall not prevent from execution of the transfer order which were presented to the bank prior to issuance of the judgment of declaration of such bankruptcy unless a resolution is issued by the count to the contrary. 

Section Five Credit opening 

Article 735 

Definition 

The credit opening is a contract under which the bank puts at disposal of the beneficiary means of payment in the limits of a certain amount and the credit shall be open for a certain or uncertain time.

Article 736 

Utilization of the credit 

The beneficiary of the credit may utilize thereof at payments in the traditionally followed modes. He may complete it also by submission of successive payments, unless otherwise agreed upon. 

The withdrawal and payment shall be affected at the office of the bank in which the relationship has arisen out unless otherwise agreed upon. 

Article 737 

Credit opening guarantee 

If the credit opening is based on a guarantee in kind or personal guarantee. The guarantee shall not expire before the expiry of the relationship just for removal of the credit owner capacity as a debtor toward the bank. If the guarantee is insufficient, the bank may claim for additional guarantee or replacement of the guarantee. If the credit owner did not reply to the demand, the bank may reduce the credit value in proportion to the reduced value of the credit or cancel the contract. The creditors may neither detain the credits nor the guarantee. 

Article 738 

Disengagement from contract and its effects 

The bank may not cancel the credit before expiry of the period agreed upon unless in case of death of the beneficiary or detention or suspension frompayment even if no judgment is issued for declaration of his bankruptcy or if he committed a gross error in using the credit which he been open in his favor. 

Cancellation of the credit shall suspend the decision of its utilization. The bank shall grant the beneficiary an appointed time for at least fifteen days to return back the amounts which he has utilized and their attachments. 

Article 739 

Credit cancellation 

If the opening of the credit is not of a fixed time, the contracting parties may disengage from the contract by a prior notice during the time prescribed in the contract or traditionally followed or within fifteen days.

Section Six Documentary credit 

Article 740 

Definition 

The documentary credit is a contract under which the bank undertakes to open c credit upon request of one of its Clientsí (the credit opening orderer) in favor of another person (the beneficiary) by the guarantee of documents representing a transported goods or prepared for transportation or against a certificate from the beneficiary to the effect that the services or the contracted works are completed. 

The documentary credit contract shall be considered independent from the contract for which the credit is opened and the bank shall remain as an alien to this contract. 

Article 741 

Credit opening documents 

The documents regarding the application for documentary credit opening or confirmation or notice shall be accurately determined as well as the documents under which the operation of payment or acceptance or discount shall be executed. 

Article 742 

Condition of payment, acceptance and discount 

The bank which has opened the credit shall undertake to implement the conditions of payment, acceptance and discount agreed upon in the credit opening contract if the documents are in conformation with data and conditions setout in this contract.

Article 743 

Kinds of documentary credit irrevocable or revocable. 

The statement of its kind must be expressly provided for in credit opening contract, otherwise the credit shall be considered as irrevocable 

Article 744 

Amendment of the documentary credit 

The revocable documentary credit shall not result in any obligation on the bank towards the beneficiary, the bank may at any time, amend or cancel thereof by itself or upon request of the orderer without need to notice the beneficiary, provided that the amendment or the cancellation shall be effected in good faith and prior to execution. 

Article 745 

Irrevocable documentary credit 

The bank shall be under obligation in case of decisive and direct irrevocable documentary credit towards the beneficiary and any holder of the drawn bond in a good faith in implementation of the contract for which the credit is opened. 

The irrevocable documentary credit may not be cancelled or amended except by agreement of all the interested parties. 

The irrevocable documentary credit may be confirmed by another bank which shall, in its turn, shall undertake decisively and directly towards the beneficiary. 

The mere notice for opening the irrevocable documentary credit addressed to the beneficiary through another bank shall be regarded as a confirmation for this credit. 

Article 746 

Validity of the documentary credit 

Each irrevocable documentary credit should include a maximum date for credit validity and submission of document for payments or acceptance or discount. 

If the appointed date for expiry of the credit validity falls on banks holiday, the validity period shall extend to the first working day next to the holiday. 

Apart from the holiday, the validity of the credit shall not be extended even if the date of its expiry coincided with discontinuation of the bankís operations due to forceful circumstances, unless there is authorization thereof by the orderer. 

Article 747 

Conformity of documents 

The bank shall verify the conformity of the documents with conditions provided for in the credit. If the bank rejected the documents, it should immediately notify the orderer of the rejection with indication of its reasons.

Article 748 

The extent of bankís responsibility 

The bank shall not be accountable if the submitted documents are apparently in conformity with the instructions which it received from the orderer. 

The bank shall also neither bear any responsibility related to definition of the goods for which the credit is opened or their quantity or weight or outer condition or wrapping or value nor what is related to execution of the senders or insurers of their obligations. 

Article 749 

Assignment of the documentary credit 

The documentary credit may either be assigned or divided except if the bank which has opened it is authorized by the orderer to pay it wholly or partially to a person or group of person other than the first beneficiary based on express instructions issued by such beneficiary. 

The assignment shall not be effected except by an express agreement of the bank. The assignment may not be effected except one time unless otherwise agreed. 

Article 750 

Non-payment of the documents value 

If the orderer of the credit opening did not pay the bank the value of the documents conforming to conditions of the credit opening during the period agreed upon after notifying him of arrival of those documents, the bank shall sale the goods by following the method of enforcement on the commercial mortgaged objects. 

Article 751 

Conformity of international rules and practices 

The unified international rules and practices shall apply to the documentary credits regarding what is not particularly provided for.

Section Seven Discount of bonds 

Article 752 

Definition 

Bonds Discount: is a contract under which the bank speeds up payment of the value of unmatured financial bond from a third party to the holder after deduction of the interest and commission provided that the ownership of the bond shall be transferred to the bank on condition that the debt shall be paid on the maturity date. 

Article 753 

Calculation of interest and commission 

The interest shall be calculated for the period from the date of discount until the maturity of the bond entitlement. The commission shall be estimated on bond value basis. The minimum of the commission may be fixed. 

Article 754 

Reimbursement of the value to the bank 

The discount beneficiary shall reimburse the normal value of the unpaid bond to the bank. 

Article 755 

Bankís right from the bond debtor 

The bank shall have all the rights arising out of the bond which it discounted from the principal debtor in the bond, the beneficiary from discount and other contractors. 

In addition, the bank shall have a separate right from the beneficiary of the discount, to recover the amount which it has put at his disposal without reducing the interest and the commission received by the bank. The bank shall exercise such right within the limits of the unpaid papers, whatever the reason for withholding payment thereof. 

If the outcome of the discount is entered in the current account, the bank should have cancelled the entry through a counter entry according to provision of Article (788) of this law, with a notice to be served to the discount beneficiary of this entry.

Article 756 

Discount of commercial paper 

In case of the discount of a commercial paper or a bank cheque through revolving, the bank shall have the right to recover the amount paid in advance, if the value was not paid on maturity date, in addition to other rights arising out of the bond. 

The special provisions regarding revolving of the unaccepted bills of exchange or those withdrawn on condition. (without acceptance). 

Article 757 

Bills of exchange supported by goods documents 

The bank shall have, if it was discounted bill of exchange supported by documents, the same privileges vested with the agent on long as the bonds representing the goods are in his possession. 

Section Eight Letters of guarantee 

Article 758 

Definition 

The letter of guarantee is a commitment to be issued by the bank upon request of one of its clients (the orderer) to pay a certain amount or assignable to another person (the beneficiary) without restriction or condition if requested so during the period fixed in the letter. 

Article 759 

Letter of guarantee coverage 

The bank may request a security for covering the letter of guarantee. The security may be an assignment by the orderer of his right from the beneficiary or any other guarantees deems sufficient by the bank. 

Article 760 

Assignment of the letter of guarantee 

The beneficiary may not assign his right arising out of the letter of guarantee except by consent of the bank and provided that the bank shall be authorized by the orderer to give such consent.

Article 761 

Obligation of the bank towards the beneficiary 

The bank may not reject payment to the beneficiary for a reason attributed to relation of the bank with the orderer or relation of the orderer with beneficiary. 

Article 762 

Relieve of bankís obligation 

The obligation of the bank towards the beneficiary shall be relieve if it did not received, within the validity of the letter of guarantee, a request for payment from the beneficiary, unless if it is agreed expressly prior to expiry of this period for its renewals. 

The bank shall undertake to reimburse to the orderer, at the end of validity of the letter guarantee the insurance which he has paid to secure such letter. 

Article 763 

Bank subrogation 

If the bank paid to the beneficiary, the amount agreed upon in the letter of guarantee, it shall subrogate him in recourse to the orderer at the amount of the paid sum, its interest and expenses. 

Article 764 

Conformity of the international rules and practices 

The unified international banking rules and practices shall be applied to the letter of guarantee regarding what is not particularly provided for. 

Section Nine Mortgage-secured loan 

Article 765 

Disposal of the mortgage objects 

The bank may not dispose of the mortgaged bonds or goods in securing loans, if given a document showing those objects, unless otherwise agreed in writing.

Article 766 

Insurance of the mortgaged object 

The bank must insure the mortgaged good to the mortgagor credit if the nature, value and subject of the goods make this precaution appropriate. 

Article 767 

Bank rights 

The bank shall have the right, in addition to the claims due to him, to recover the expenses arising out of the watching of goods or bonds as long as it did not gain the right to dispose thereof. 

Article 768 

Right to withdraw a part of the mortgaged object 

The contracting party may, prior to maturity date of the contract, withdraw a part of the mortgaged bonds or goods by paying his share of the advance amount or the loan and other amounts due to the bank according to previous article unless the remaining debt guarantee becomes insufficient. 

Article 769 

Depreciation of the mortgaged objects 

If the guarantee value is decreased at least as much as one tenth of its value at the contracting time, the bank may claim the debtor for additional guarantee as per the tradition and serving him a notice that mortgaged the bonds or goods will be sold, should he did not answer the claim. 

The bank may effect the sale according to provisions of the law regarding sale of the mortgaged object. 

The bank shall have the right to recover its remaining right which it did not received from sale product. 

Article 770 

Entry of deposits in securing the mortgage 

If cash deposits or goods or bonds were entered without mentioning their particulars for guarantying a debt or more or given the power to disposal thereof to the bank, then the bank shall not be under obligation except to recover the amount or a part of the goods which are in excess of the secured debts. The surplus shall be fixed in consideration of the goods or bonds value on maturity date.

Section Ten Current account 

Article 771 

Definition 

The current account is a contract under which two persons shall agree that the debts arising out of the operations to be executed between them as to delivery of money or properties or commercial papers subject to possession and so on shall be entered into account through mutual and interfered payments, and shall substitute for settlement of these debts, each payment alone, by a final settlement resulting in account balance when closed. 

On maturing date fixed for closing, claiming for the balance shall be entitled, if its payment is not claimed for, the balance shall be considered as a new payment to the new account and the contract shall be considered as renewed for uncertain period. 

Article 772 

Overdrawn account 

The current account may overdrawn for both parties or overdrawn for one party as per to be agreed upon by the both parties. 

Article 773 

Account in currencies 

If the entries of the current account included debts in cash evaluated in different currencies or un similar objects, both parties may agree to enter thereof into the account provided that they shall be entered in separate sections with consideration of the similarity in payments which they include, and both parties shall declare that the account shall remain maintaining its unity inspire of the multiplicity of its sections the balances of those sections should be transferable in such a manner that, at the time fixed by the both parties or at most on closing of the account clearance maybe effected in order to draw out one balance. 

Article 774 

Debts exempted from current account 

The current account shall not include the debts which are not subject to clearance. If the contract was between two merchants, then the current account shall not include the debts beyond the scope of the activity of each of them. 

Article 775 

Disposal of the balance 

The ownership of the money and properties to be entered into the current account shall be transferred to the party who received thereof. Each party in the current account shall have the right at any time to dispose of his credit balance unless otherwise agreed. 

Article 776 

Commission and expense recovery

Existence of a current account does not prevent from claiming for commission and reimbursing the expenses related to operations resulting in payments. The account shall secure these rights unless otherwise agreed. 

Article 777 

Effect of inclusion in account 

Inclusion of a debt in a current account shall not prevent from exercising the lawsuit and pleadings related to the operation leading to the debt. If the operation is judged as revoked or invalidated or cancelled or dissolved, then the payment related to it shall be deleted from the account. 

Article 778 

Secured debts 

If the debt included in a current account is coupled with guarantee in kind or personal guarantee, then the contracting party have right to persist in the guarantee in order to receive the existing balance in his favor on closing the current account to the debt. The same provision shall apply if the debt is accompanied by a joint warrantor. 

If the laws stipulated certain procedures for meeting the guarantee or remonstrate thereby against the third party, then it shall not be transferred to the balance and should not be remonstrated thereby except from the date of completion of those procedures.

Article 779 

Loss of respective description of the debt 

The debts resulting to one of the parties if entered into the current account shall loss their respective description and their self-entity, then they shall not be afterwards subjects alone to payment neither to clearance nor to lapse by prescription. 

Article 780 

Inclusion of debts to a third party 

Inclusion of debt to a third party in a current account shall be supposed coupled with a condition ((receiving of its value). In this case, if the debt is not paid it shall be met with right of option either by claiming the debtor or striking the payment off the account and returning the rights of the payment owner to him. He may also strike the payment off the account if he did not obtain a result of the lawsuit brought against the debtor. 

Article 781 

Indivisible of the current account 

The entries of the current account as a whole shall not accept division prior to account closure and production of final balance, and enclosure of the account alone shall result in total clearing of all the account entries. 

Article 782 

Attachment on current account 

The creditor of one of the account sides may inflict the attachment during the account progress on credit to his debtor at the time of attachment infliction. The rights of the attachÈ shall not be prejudiced by disposing of the new payments which shall be made after the date of attachment infliction. The attachment shall be declared to the branch of the bank where the account of the attachÈ is. 

Article 783 

Closing of the current account 

The account shall be closed if five years is expired from the date of the last turnover and the balance shall be transferred to the pending account of the unclaimed balances.

If the account holder did not claim the balance within fifteen years from the date of its transfer to the pending account, then its shall pass to the public treasury. 

Article 784 

Current account statement 

The bank shall send to the account holder statement of his account at least once every two months containing turnover of the account and its balance. The account holder may raise objection to what is setout in the statement within fifteen days from the date of receiving thereof. If such period is expired without objection, the account holder shall be considered an agreement to what is setout in the statement. 

Article 785 

Appointment of duration for closing and stopping the account. 

If duration is appointed for account closing, it shall be closed by its expiry, it may be closed prior the expiry of such duration with both parties agreement. 

If the duration is not appointed for the current account, it may closed at any time by the will of one of the two parties with consideration of the notice dates agreed upon or which are common practice. 

In all the cases the account shall be closed by the death or disqualification or bankruptcy of either party. 

The account may be suspended during its validity to show the position of both parties on dates to be agreed upon by the parties or to be fixed by the local practice, otherwise at the end of every three months. 

Article 786 

Prescriptions of the legal interest on balance debt 

The general rules shall apply to the prescription of the legal interests on balance debt. These interests shall be calculated from the date of account closing, unless there is a practice or agreement stipulates non-calculation of the same.

Article 787 

Account amendment 

If the debt entered in the account is removed or its amount is reduced by a reason subsequent to its entry in the account, its entry must be cancelled or reduced and amending the account accordingly. 

Article 788 

Reversible entry of commercial paper 

If the product of deduction of a commercial paper is entered in the current account and the value of the paper is not paid on maturity date, the bank may deduct the paper even after declaration of bankruptcy of the party who presented it for deduction and cancellation of the entry by reversible entry. 

The reversible entry means entry of an amount equivalent to the value of the commercial paper in addition to the legal interest from the maturity date and expenses on the debit side of the account. 

The reversible entry may not be effected unless in what is related to the commercial paper which is not paid on their maturity date and any agreement to the contrary shall be considered null and void. 

Article 789 

Prescription 

The lawsuit regarding correction of an account due to an error or omission or repetition in entry or other corrections after expiry of six month from the date of receiving the statement of account concerning the liquidation which shall be sent by a registered letter accompanied with acknowledgement receipt. 

In all the cases the lawsuit shall prescribe after expiry of five years from the date of account closing. 

Article 790 

Account confidentiality 

If the current account is opened with a bank, then the bank may not give data or information about the account number or turnover or balance unless to the account holder or his agent or his successors or legatees after his death or according to provisions of the law.