New Check Regulation Takes Center Stage at 38th Edition of Journées de l'entreprise
The new check regulation is undoubtedly stealing the spotlight. The 38th edition of the Journées de l'entreprise, organized by the IACE in Sousse from December 5 to 7, 2024, made it its topic of choice. In fact, a special session was held on December 5, focusing on "Adapting to the New Check Regulation" and exploring possible solutions to adapt to the amendment of the Commercial Code, particularly regarding checks, and the development of alternative solutions.
Expert Insights on Alternative Payment Methods
In this context, Youssef Kortobi, President of the Board of Arab Financial Consultants (AFC) and member of the IACE's steering committee, emphasized that "the check has changed, it's no longer what we know, and we need to find alternative solutions. We can use digital payment methods, but we can also resort to letters of credit in commercial transactions." He explained that there are two phases to consider when using letters of credit: prevention and execution. The first phase is more interesting, according to him, and involves four steps: gathering information, such as requesting a certificate of non-bankruptcy; avoiding formal defects in the letter of credit; establishing a link between the billing process and the letter of credit; and taking guarantees. Youssef Kortobi highlighted that these steps, when applied, allow for contesting a letter of credit that has been returned unpaid within 48 hours of the due date.
Alternative Solutions for Unpaid Letters of Credit
In the event of an unpaid letter of credit, the seller has the option to adopt an alternative approach based on discussion with the issuer regarding the possibility of paying the due amount. Youssef Kortobi explained that there are preventive solutions at this stage, such as stopping delivery of orders. "I think an amicable agreement is always preferable to a lawsuit, even if it doesn't fully meet the creditor's expectations," he added. If an agreement cannot be reached, the seller can resort to the court, which issues a payment injunction, the fastest solution. In fact, within three days, the judge delivers a decision that enables seizures and other procedures.
