“shtar hov” or “cheque bitahon”

A shtar hov שטר חוב is a deed or bill that is a bit like a cheque but contains more details. There are 2 types: with or without the details of the maker/payer’s bank account. You can get one at the post office for a few sheqel or download one for free on the web. The ones on the web can be edited to add or subtract the bank details. Not sure what the post office ones contain. The beneficiary/payee (typically a landlord) can cash the shtar hov at a bank if it contains the maker/payer’s bank details, or he will have to go to “Hotsah lafoal”  הוצאה לפועל if it does not have the bank details.

A cheque bitahon שיק ביטחון is an ordinary cheque upon which is written “cheque bitahon” or “שיק ביטחון” or “security cheque”. Usually the date and sum are left blank. The beneficiary/payee (usually a landlord) can cash the cheque bitahon at a bank.

To cash the shtar hov or the cheque bitahon the payee does NOT need the prior permission of the maker of the shtar or cheque or a court order. A nice bank clerk might telephone the maker of the cheque or shtar before it is cashed, to give him time to cancel it, but do not rely on this!

Very important to note that above is a rough outline. The exact details are a matter for negotiation between the parties (eg tenant and landlord) and will be subject to their contractual relationship. In other words, if you are going to give a shtar hov or a cheque bitahon make sure that the circumstances that they can be used are stated clearly somewhere in writing (usually this will be in a contract).

Law in Israel

שאול דיוויס עו”ד

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One response to ““shtar hov” or “cheque bitahon”

  1. Hi Saul,
    What happens if a cheque such as one given for Arnona, Electric, Gas etc. is used by a landlord for a bill the tenant was judged by the Iriya, IEC, gas company not to owe (i.e. not for the purpose the cheque was given)? Is this fraud? Attempted theft?
    What happens if the same cheque is not actually used by the landlord, but the landlord passes it to new tenants (who were certainly never given authority to use the cheque)? Will this be assisted fraud? Assisted attempted theft? Conspiracy to commit a crime? Where do the new tenants/landlord stand in the eyes of the law?

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