An open check that was given as a security for a short and limited period, was transferred to a third party who filled in the name of the beneficiary and the amount without power.
The Court accepted the objection to the banknote and held that payment of the check should not be enforced. When the note is not complete, the holder is not a holder in due course. In such a situation, the holder of the note must show the existence of a debt. When it comes to a security check given as a guarantee, there is an obligation to give the guarantor prior notice regarding the amount of its guarantee and also regarding the main debtor's non-compliance with its obligations. Here, the check was signed and given voluntarily, but its details, except for the signature, were missing. The purpose of the check was to serve as security for a limited period of one week, but the holder of the note filled the amount of the check in the amount of over ILS 100,000 without showing that there was any debt and also acted in bad faith when it did not inform the owner of the check before submitting the check for execution in the collection authority. Therefore, the objection was accepted and the claim dismissed.