THE LEGAL NATURE OF THE PROHIBITION OF ISSUING CHECKS AND OPENING CHECKING ACCOUNTS AND SOME ISSUES RELATED TO THE APPLICATION OF THIS PROHIBITION

Check is the most frequently preferred negotiable instrument in practice. It is regulated both under the Turkish Commercial Code (TCC), and also under a special law, which indicates its importance. Moreover, the fact that its further regulated under Article 210 of the Turkish Penal Code (TPC) as a legal document, emphasizes its public importance. In conjuction with this significance, to ensure the protection of creditors as well as the security of commercial transactions, the act of causing a check to be processed as "bounced" is criminalized under the Law of Checks, and it is subject to special sanctions. Additionally, as part of this offense the law prescribes a prohibition on issuing checks and opening checking accounts. This study identifies the legal nature of the prohibition on issuing checks and opening checking accounts, and examines the potential issues arising from its application. Within this scope, the question of whether this prohibition constitutes a sanction or a protective measure is analyzed. Furthermore, the status of a drawer of a "bounced" check, when issued under a power of attorney or by proxy, is specifically evaluated.