Introduction about the Checks:

Kuwait Social Work Group has conducted comprehensive field and survey studies on the imprisoned person in the cases of checks without balance in the Public Prison (Talha Prison), Central Prison and Women Prison, numbered 468 imprisoned persons.

This study is due to the findings it reveals, which findings would not be clear without conducting this study. It is also important because it the first field practical study conducted about the subject. It has closely addressed the real reasons that led to the involvement of those person imprisoned in these cases. This study has addressed the invisible aspects which were not clear for many people about the negative impacts caused for the life of the imprisoned persons, the confusion caused to their families, their suffering as if the punishment were not enforced to those persons only but included their families as well. Those families did not do any act against the law except that they are under the care of those involved in such cases. This means that the number of imprisonment years of those involved in such cases means the suffering of their families including wives, children, fathers, mothers, old-aged and sick people who are the fathers and mothers of those sentenced persons who suffer the agonies of the years of imprisonment. Thus, the punishment has included the involved persons, their wives, fathers and mothers.

The study revealed, through findings reached, important facts about the reasons which led to the exacerbation of this negative phenomenon which is reflected on the involved persons, their families, children, society and economic life in general.

Historic Brief:

Checks were firstly used in the 17th century in England, Europe and other European countries. People used to deposit most of their money in coins at the jewelers' or mortgage agents (agents of creditor and debtor). They were the first ones to become bankers. Gradually, those bankers have accumulated considerable cash deposits; they could lend them to persons in return for an interest rate. In order that the person pays money for another person, the depositor has to write an order called "payment order" to the bank employee required from him or pay a part of his balance to the other person. This was the start of the check.

Later, depositors began to withdraw loans with the check and loans were entered in their accounts and deducted from the account of the loan. Whereas the withdrawn checks are more than the actual balances in the account, the amount of money circulated has increased. In this case, it is a debt not real money. It consists of just figures recorded in books of banks. In the same epoch, bankers issued banknotes representing the amounts of money deposited in the account of their banks and the expected withdrawals from these accounts. Such a system may continue if people trust the ability of the bank to cash checks or bank notes are exchanged when requested.

How the system of check works:

When a person or an institution opens a current account, the account owner receives a check book containing some blank checks. The account owner issues the check to include the date, the beneficiary's name and the amount of money. The account owner signs the check, the bank sends to the account owner, on regular periods, a statement including a list with deposits, withdrawals issued with checks. In this statement appears the balance or the remaining amount in the account. The bank enumerates the checks annulled for the period.

The beneficiary can cash the check or replace it in return for his money, deposit it in a bank account or transfer it to another person or institution. In order that the beneficiary cash, deposit or transfer a check to him, endorse the check with the signature on its back. Thus, the responsibility or liability of the endorser is in paying the amount of the check if it appeared that the one who issued that check has no sufficient balance to cover the amount mentioned in the check.

After he deposits the check in a bank, the bank takes back the amount by sending the check again to the bank of the original person who made the check. This bank of the person who made the check deducts the amount from his account. The check can be withdrawn by the bank itself or by a clearing institution. Whereas if the amount is very considerable, it can be withdrawn by the Central Bank.

The numbers printed on the check are identified by magnetic ink in the Central Bank and the bank account holder; this helps electronically classify checks.

Services of special checks: some payments require using a certified check or exchange check. These checks are immediately accepted like money because banks guarantee them being paid. The certified check is an ordinary check issued by a person or institution sealed with the phrase "Certified By the Bank". The bank keeps a sufficient amount in the account of the depositor to repay the check he guarantees or previously issued. The bank deducts the amount from the depositor's account. Exchange check can be bought for money. Banks and travel agents sell traveler's checks for different denominations. The buyer signs them immediately in the bank or the agent's when receiving them. He signs them again to get money or purchases. The second signature aims at verifying the identity of the owner of the traveler's check. Traveler's checks can be used all over the world because the bank or the company which has issued them guarantees payment. Moreover, one of the advantages of the traveler's checks is that the bank or tourist agent declares to issue an alternative for the lost or stolen checks.

Checks and Economy: checks are the main mode of payment in different parts of the world. The economists consider the money of the check book (balances in the accounts of checks) a part of the revenues of the State from currency for years. Checks were not used except through commercial banks (banks that provide various banking services). Since the 1970s, other institution, such as housing societies, began to present account to compete with the accounts of checks in commercial banks. Banks and other monetary institutions present accounts of special interests from which it is possible to withdraw by checks.

Definition of Checks:

It is a written cashing voucher or bank payment voucher that authorizes the bank to pay money for a person, institution or bearer.

A person (or an institution) who has a bank account can issue a check. The bank transfers the amount mentioned in the check from the account to the payee (beneficiary), who is the mentioned person or institution.

Checks are used on a large scale because it is easier used and more secure than money. For example, the person who has the bank account is not forced to carry great amounts of money that might be lost or stolen. Checks can be sent safely by courier but they can not be duly cashed except for the person to whom they were issued personally. The used checks are called annulled checks and help register payments.