What’s the validity of a security cheque in the UAE?

In the UAE, a security cheque is often required by banks when issuing mortgages, serving as a guarantee for the loan amount. This cheque is typically undated and should cover the full loan amount, ensuring that if the borrower defaults on repayments, the bank can present the cheque to recover the outstanding debt.

The validity of a security cheque is crucial; if it bounces, the bank can initiate legal proceedings to take possession of the property. This practice aligns with the broader legal framework in the UAE, where bounced cheques can lead to civil penalties.