Law No. (23) of the year 1378 A.H. (2010 C.E.) Regarding Commercial Activity.

Book Four

Bank Operations

Chapter One

Cash Deposits

Article (701) The Deposit Operation and Its Effects The bank acquires ownership of the cash deposited with it, and has the right to dispose of it. It is obligated to return it of the same kind upon the depositor's request, or upon the maturity of the agreed term, or after prior notice as specified by the contract or custom. Payment and withdrawal operations are conducted at the bank's headquarters where the relationship originated, unless otherwise agreed.

Article (702) Recording of Operations The bank opens an account for the depositor to record the operations conducted between them, or the operations conducted between the bank and third parties on behalf of the depositor.

Article (703) Depositor's Right to Withdraw The cash deposit contract does not grant the depositor the right to withdraw amounts from the bank exceeding the amount deposited. If the bank conducts operations resulting in the depositor's balance being in debit, the bank must immediately notify the depositor to settle their position.

Article (704) Return of the Deposit The cash deposit is returned upon request unless otherwise agreed. The depositor has the right at any time to dispose of the balance or part of it. This right may be subject to prior notice or the maturity of a specific term. If the depositor dies, the deposit remains in effect according to the contract terms unless the heirs request its return before maturity.

Article (705) Account Statement The bank sends an account statement to the depositor at least once every three months, unless custom or agreement dictates otherwise. The statement must include a copy of the account and the balance amount after the last transaction. The depositor has the right to object to the contents of the statement within one month of receipt. If this period expires without objection, the depositor is deemed to have agreed to the statement. In all cases, no request to correct the account is accepted, even if based on error, oversight, or duplication, regarding entries older than five years, unless the depositor notified the bank during this period that they had not received an account statement.

Article (706) Savings Book A savings account is opened upon the owner's request. If the owner is a minor, the account is opened upon the request of their guardian or legal representative. If the bank issues a savings book, it must be in the name of the person for whom it was issued, and payments and withdrawals must be recorded therein. The data contained in the book, signed by a bank employee, serves as evidence of the data mentioned in the relationship between the bank and the book's owner. Any agreement to the contrary is void. If a savings account is opened in the name of a minor, the minor and any other person have the right to deposit into this account. The minor, upon reaching fifteen years of age, has the right to withdraw from it unless their guardian or legal representative objects.

Article (707) Clearing in Multiple Accounts If the relationship between the bank and the current account holder is complex or based on multiple accounts, even with different currencies, the credit and debit balances are subject to clearing unless otherwise agreed.

Article (708) Joint Account The bank may open a joint account between two or more persons equally, unless there is an agreement to the contrary, subject to the following provisions:

1. The joint account is opened by all owners or by a person holding a power of attorney issued by the account owners from competent authorities. Withdrawals are subject to the agreement of the account owners.

2. If a seizure is placed on the balance of one of the joint account owners, the seizure applies to the share of the seized person from the account balance from the day the bank is notified of the seizure. The bank must stop withdrawals from the joint account equivalent to the seized share and notify the partners or their representatives within a period not exceeding five days.

3. The bank may not include this account in clearing between different accounts belonging to one of the joint account owners without the written consent of the other partners.

4. Upon the death of one of the joint account owners or their loss of legal capacity, the remaining owners must notify the bank of this and their wish to continue the account within a period not exceeding ten days from the date of death or loss of capacity. The bank must stop withdrawals from the joint account until a successor or guardian is appointed for the person who lost capacity.

5. If one of the joint account owners notifies the bank of a dispute among them, the bank must freeze the account until the dispute is settled, amicably or judicially.

Chapter Two

Securities Deposits

Article (709) Use of Securities The bank may not use the securities deposited with it, or exercise the rights arising from them, except for the benefit of the depositor and upon their written request.

Article (710) Custody of Securities The bank must exercise the care of a bailee for hire in preserving the deposited securities. Any agreement exempting the bank from exercising this care is void. The bank may not relinquish possession of these securities except with judicial authorization. The depositor is obligated to pay the agreed fee or that determined by custom, in addition to necessary expenses.

Article (711) Collection of Interest The bank is obligated to collect the interest, profits, due value, and any other amount due from the security, unless otherwise agreed. The amounts collected by the bank are placed at the depositor's disposal and credited to their account. The bank must perform all operations necessary to preserve rights related to the security, such as delivering certificates issued for it free of charge, renewing them for exchange, or adding new profits to them.

Article (712) Notifying the Depositor The bank must notify the depositor of any matter or right related to the security that requires their consent or depends on their choice. If the depositor's instructions do not arrive in time, the bank must act on the right in a manner beneficial to the depositor. The depositor bears the expenses of the operations performed by the bank, in addition to the commission.

Article (713) Return of Securities The bank is obligated to return the deposited securities upon the depositor's request, considering the time required to prepare the securities for return. Return takes place at the location where the deposit was made. The bank is obligated to return the deposited securities themselves, unless the parties agree or the law permits return of equivalent value. Return is made to the depositor of the security, their agent with special power of attorney, or their successor, even if the security indicates ownership by a third party.

Article (714) Claim of Entitlement If a person claims entitlement to the deposited securities, the bank must immediately notify the depositor and refrain from returning the securities to them until the dispute is settled amicably or judicially. The claimant must file their lawsuit within thirty days from the date of the claim; otherwise, the claim is considered void.

Chapter Three

Safe Deposit Rental

Article (715) Definition Safe deposit rental: A contract by which the bank, in exchange for a fee, undertakes to place a specific safe at the tenant's disposal for use for a specific period.

Article (716) Bank's Liability The bank bears liability to the client for the suitability of the safe premises for the purpose they were prepared for, their security, and the absence of defects in the safes. The bank cannot deny its liability except by proving the tenant's fault or force majeure.

Article (717) Safe Key The bank must deliver the safe key to the tenant. The bank alone may keep a copy of it. The key remains the property of the bank and must be returned to it upon the expiration of the rental. The bank may not authorize anyone other than the tenant or their agent to open the safe. In the event of the tenant's death, the bank may open the safe and deliver its contents to the heirs' agent or to a person appointed by the court for this purpose, with a written record of the delivery.

Article (718) Prohibition of Subletting or Assignment The tenant may not sublet the safe or part of it, or assign the rental to another, unless otherwise agreed. The tenant may not place items in the safe that threaten its safety or the safety of the place where it is located. If the safe becomes threatened by danger or it is found to contain dangerous items, the bank must immediately notify the tenant to come and empty it or remove the dangerous items. If the tenant does not appear within the specified time, the bank may request the competent court to issue an order upon petition authorizing it to open the safe, empty it, or remove the dangerous items in the presence of a person appointed by the court.

If the danger is imminent, the bank may, at its own responsibility, open the safe and empty it or remove the dangerous items without notifying or obtaining the judge's permission. In all cases, a record of the incident is drawn up stating the contents of the safe.

Article (719) Shared Safe If the safe is rented to multiple tenants, none of them has the right to use it individually unless otherwise agreed. In the event of the death of one of the tenants, the bank may not authorize opening the safe after learning of the death except with the consent of all interested parties or by a decision of the President of the Primary Court.

Article (720) Termination of Contract If the tenant fails to pay the safe rent after fifteen days from being notified to pay, the contract is considered terminated automatically without the need for a judicial ruling. The bank notifies the tenant to come and open it and empty its contents.

Article (721) Expiration of Contract If the contract term expires or is considered terminated, the bank may request the Summary Judge to issue a notice to open the safe. This is done after notifying the owner and after sixty days from the date of that notice. The notice may be sent via registered mail with acknowledgment of receipt. The opening is conducted in the presence of a contract drafter appointed for this purpose, with precautions deemed appropriate by the Summary Judge. The Summary Judge may order the preservation of items in the safe by depositing their contents with the bank or a custodian appointed for this purpose. The judge may also order the sale of part of them to the extent sufficient to satisfy the bank's rights to rent and expenses.

Article (722) Seizure of Safe A seizure may be placed on the safe. The seizure is effected by instructing the bank to state whether it rents a safe to the seized person. If the bank admits this, it must prevent the seized person from entering the safe area. A copy of the seizure record, including the document under which the seizure was made, is left with the bank. The safe tenant is also notified via the seizure record.

If the seizure is precautionary, the tenant may request the Primary Court to lift the seizure or permit them to take some of the safe's contents in the presence of a person appointed by the court.

If the seizure is executive, the bailiff, after notifying the tenant, must forcibly open the safe after the seizing party deposits the expenses of opening it and returning it to its state. The contents of the safe are sold according to the procedures outlined in the Code of Civil Procedure.

If the tenant is absent and the safe contains documents or papers, the bank must keep them in a secure place sealed by the bailiff's and the bank's seals until the tenant or their heirs request them. If the tenant or heirs do not apply to collect the papers or documents within one year, the bank must refer the matter to the judge of urgent matters to decide as they see fit. The seizing party must pay the bank an amount sufficient to guarantee the safe rent during the seizure period.

Article (723) Notifying Safe Tenant Notification to the safe tenant is valid if addressed to the domicile designated by them to the bank.

Article (724) Prohibition of Opening Safe Except in cases stipulated by law, the bank may not open the safe or empty its contents except with the tenant's permission, in their presence, or in execution of a ruling or order issued by the competent judge or the Public Prosecution.

Chapter Four

Bank Transfer

Article (725) Definition Bank transfer: An operation by which the bank transfers a specific amount to the beneficiary, upon a written request from the orderer, using one of the following methods:

1. Transferring a specific amount from one person to another, each having an account with the same bank or with different banks.

2. Transferring a specific amount from one account to another, both opened in the name of the transfer orderer with the same bank or with different banks.

3. Transferring a specific amount from one person to another, neither or both of whom hold a bank account.

The agreement between the bank and the orderer regulates the conditions for issuing the order. However, the transfer may not be to bearer.

If the beneficiary of the transfer is authorized to transfer the value to the credit side of another person's account, their name must be mentioned in the transfer order.

Article (726) Direction of Disputes If the transfer is conducted between two or more branches of the bank or between different banks, any dispute arising from a third party regarding the value must be directed to the branch or bank where the beneficiary's account is located.

Article (727) Amount Subject to Transfer The transfer order may relate to an amount actually credited to the orderer's account or to an amount to be credited to this account within a period the orderer agrees to specify in advance with the bank.

Article (728) Notification of Transfer It may be agreed that the beneficiary themselves presents the transfer order to the bank instead of it being notified to them by the orderer.

Article (729) Revocation of Transfer Ownership of the transfer passes to the beneficiary from the time it is credited to the credit side of their account. The orderer may revoke the transfer order until this credit is made.

If it is agreed that the beneficiary themselves presents the transfer order to the bank, the orderer may not revoke the transfer order, subject to the provisions of Article (734) of this Law.

Article (730) Debt and Its Guarantees The debt issued to satisfy the transfer order remains subject to its guarantees and accessories until the value is actually credited to the credit side of the beneficiary's account.

Article (731) Insufficient Balance If the orderer's balance is insufficient, and the transfer order is directed directly to the bank by the orderer, the bank may refuse to execute the transfer, provided it immediately notifies the orderer of this refusal. If the transfer order is presented by the beneficiary, the bank credits the partial balance to its account unless the beneficiary refuses this. The bank must endorse the transfer order with the partial balance credit or the beneficiary's refusal thereof. The orderer retains the right to dispose of the partial balance if the bank refuses to execute the transfer order, or if the beneficiary refuses the partial balance credit, according to the preceding paragraphs.

Article (732) Distribution of Balance If multiple beneficiaries present themselves to the bank at once, and the value of the transfer orders they hold exceeds the orderer's balance, the bank has the right to refuse to execute all transfers or to distribute this insufficient balance among the beneficiaries in proportion to their rights.

Article (733) Deadline for Distribution The distribution referred to in the previous article may only be conducted on the first working day following the day of presentation. The provisions of the second and third paragraphs of Article (731) apply to this case.

Article (734) Bankruptcy of Beneficiary If the beneficiary's bankruptcy is declared, the orderer may stop the execution of the transfer order even if the beneficiary has received it themselves. The declaration of the orderer's bankruptcy does not prevent the execution of transfer orders presented to the bank before the judgment of bankruptcy is issued one month prior, unless the court decides otherwise.

Chapter Five

Opening of Credit

Article (735) Definition Opening of credit: A contract by which the bank places means of payment at the beneficiary's disposal within a specific amount. The credit is opened for a specific or unspecified period.

Article (736) Benefiting from Credit The beneficiary of the credit may benefit from it in installments using customary methods. They may also complete it by providing successive installments unless otherwise agreed. Withdrawals and payments are conducted at the bank's headquarters where the relationship originated, unless otherwise agreed.

Article (737) Guarantee of Opening Credit If the opening of credit is based on real or personal guarantee, the guarantee does not end merely because the credit owner ceases to be a debtor to the bank before the end of the relationship. If the guarantee becomes insufficient, the bank may request additional guarantee or substitution. If the credit owner fails to comply with the request, the bank may reduce the value of the credit by the amount the guarantee decreased or be released from the contract. Creditors may not seize credits or guarantees.

Article (738) Release from Contract and Its Effects The bank may not cancel the credit before the agreed period ends except in the event of the beneficiary's death, seizure, or suspension of payments, even if no judgment declaring their bankruptcy has been issued or if a serious error occurred in the use of the opened credit for their benefit. Cancellation of the credit stops the decision to benefit from it. The bank must grant the beneficiary a period of at least fifteen days to return the amounts they benefited from and their accessories.

Article (739) Cancellation of Credit If the opening of credit is not time-bound, either contracting party may be released from the contract by prior notice within the period stipulated in the contract or customary, or within fifteen days.

Chapter Six

Documentary Credit

Article (740) Definition Documentary credit: A contract by which the bank undertakes to open a credit upon the request of one of its clients (the orderer to open credit) in favor of another person (the beneficiary) against documents representing movable goods or goods intended for transport, or against a certificate from the beneficiary confirming the completion of services or works contracted. The documentary credit contract is independent of the contract that opened the credit, and the bank remains a stranger to this contract.

Article (741) Documents for Opening Credit The documents related to the request to open or confirm the documentary credit or notify it, as well as the documents by which payment, acceptance, or discount operations are executed, must be specified precisely.

Article (742) Conditions for Payment, Acceptance, and Discount The bank that opened the credit is obligated to execute the conditions for payment, acceptance, and discount agreed upon in the credit opening contract if the documents match the data and conditions stated in this contract.

Article (743) Types of Documentary Credit The documentary credit may be irrevocable or revocable. The contract must explicitly state its type. If not stated, the credit is considered irrevocable.

Article (744) Amendment of Documentary Credit The revocable documentary credit imposes no obligation on the bank towards the beneficiary. The bank may amend or cancel it at any time on its own or upon the orderer's request without notifying the beneficiary, provided the amendment or cancellation is done in good faith and before execution.

Article (745) Irrevocable Documentary Credit The bank's obligation in the case of an irrevocable documentary credit is definitive and direct towards the beneficiary and every holder in good faith of the drawn instrument, in execution of the contract that opened the credit. The irrevocable documentary credit may not be canceled or amended except by agreement of all interested parties. An irrevocable credit may be confirmed by another bank, which undertakes a definitive and direct obligation towards the beneficiary. Merely notifying the beneficiary of the opening of an irrevocable documentary credit sent via another bank does not constitute confirmation of this credit.

Article (746) Validity of Documentary Credit Every irrevocable documentary credit must include a maximum date for the validity of the credit and the presentation of documents for payment, acceptance, or discount. If the specified date for the expiration of the credit's validity falls on a bank holiday, the validity period extends to the first working day following the holiday. Except for holidays, the credit's validity does not extend even if its expiration date coincides with a suspension of bank operations due to force majeure, unless authorized by the orderer.

Article (747) Matching of Documents The bank must verify that the documents match the conditions stipulated in the credit. If the bank rejects the documents, it must immediately notify the orderer of the rejection, stating the reasons.

Article (748) Extent of Bank's Liability The bank is not liable if the documents presented appear on their face to match the instructions received from the orderer. The bank also bears no liability regarding the identification of the goods for which the credit was opened, or their quantity, weight, external condition, packaging, or value, nor regarding the execution of carriers or insurers of their obligations.

Article (749) Assignment of Documentary Credit The documentary credit may not be assigned or divided unless the bank that opened it is authorized by the orderer to pay all or part of it to a person or group of persons other than the original beneficiary based on explicit instructions from this beneficiary. Assignment is only valid with the explicit consent of the bank and may not be assigned more than once unless otherwise agreed.

Article (750) Non-Payment of Document Value If the orderer to open the credit does not pay the bank the value of the documents matching the opening conditions within the agreed period after being notified of the arrival of these documents, the bank sells the goods using the methods of execution on pledged items under commercial pledge.

Article (751) Application of International Rules and Usages The Uniform Rules and Customs for Documentary Credits apply to documentary credits in matters not covered by special provisions.

Chapter Seven

Discounting of Instruments

Article (752) Definition Discounting of instruments: A contract by which the bank, in exchange for the holder of a financial instrument against a third party whose maturity has not arrived, pays its value after deducting interest and commission. Ownership of the instrument transfers to the bank subject to the condition of debt collection upon maturity.

Article (753) Calculation of Interest and Commission Interest is calculated for the period from the discount date until the maturity of the instrument. Commission is calculated based on the value of the instrument. A minimum commission may be specified.

Article (754) Return of Value to Bank The beneficiary of the discount must return to the bank the nominal value of the instrument that was not paid.

Article (755) Bank's Rights Before the Debtor of the Instrument The bank has before the original debtor of the instrument, the beneficiary of the discount, and other obligors all rights arising from the discounted instrument. In addition, the bank has an independent right before the beneficiary of the discount to recover the amounts placed at their disposal, without deducting the interest and commission collected by the bank. The bank may use this right to the extent of unpaid instruments, regardless of the reason for refusal to pay. If the proceeds of the discount are credited to the current account, the bank may cancel the credit via reverse entry, according to Article (788) of this Law, notifying the beneficiary of the discount of this entry.

Article (756) Discounting Commercial Papers In the case of discounting a commercial paper or bank check via recourse, the bank has the right to recover the accelerated amount if the value is not paid at maturity, in addition to other rights arising from the instrument. Special provisions regarding the recourse of non-accepted or unaccepted drafts are observed.

Article (757) Drafts Supported by Goods Documents The bank, if it discounts drafts supported by documents, has the same privileges granted to the agent, as long as the existing documents are in its possession in place of the goods.

Chapter Eight

Letters of Guarantee

Article (758) Definition Letter of guarantee: A commitment issued by a bank upon the request of a client (the orderer) to pay a specific or determinable amount to another person (the beneficiary) without condition if requested within the period specified in the letter.

Article (759) Covering the Letter of Guarantee The bank may request insurance to cover the letter of guarantee. The insurance may be a waiver by the orderer of their right before the beneficiary, or any other guarantees the bank deems sufficient.

Article (760) Assignment of Letter of Guarantee The beneficiary may not assign their right arising from the letter of guarantee except with the bank's consent, provided the bank is authorized by the orderer to give this consent.

Article (761) Bank's Obligation to the Beneficiary The bank may not refuse payment to the beneficiary for a reason related to the bank's relationship with the orderer or the orderer's relationship with the beneficiary.

Article (762) Discharge of Bank's Liability The bank is discharged of its liability to the beneficiary if no request for payment from the beneficiary reaches it during the validity period of the letter of guarantee, unless it is explicitly agreed before the end of this period to renew it. The bank is obligated to return to the orderer at the end of the letter of guarantee's validity any insurance provided to obtain this letter.

Article (763) Subrogation of Bank If the bank pays the beneficiary the amount agreed upon in the letter of guarantee, it is subrogated to the right of recourse against the orderer for the amount paid and its interest and expenses.

Article (764) Application of International Rules and Usages The Uniform Rules and Customs for Bank Guarantees apply to letters of guarantee in matters not covered by special provisions.

Chapter Nine

Loan Secured by Pledge

Article (765) Disposal of Pledged Items The bank may not dispose of the securities or goods pledged as security for loans if it has issued a document specifying these items, unless otherwise agreed in writing.

Article (766) Insuring Pledged Items The bank must insure the pledged goods on behalf of the pledgor if the nature, value, and location of the goods make this precaution appropriate.

Article (767) Bank's Rights In addition to the amounts due to it, the bank has the right to recover expenses arising from the custody of the goods or securities as long as it has not acquired the right to dispose of them.

Article (768) Right to Withdraw Part of the Pledge The contracting party may, before the contract's maturity, withdraw part of the securities or goods pledged by paying their share of the loan amount or other amounts due to the bank under the provisions of the previous article, provided the security for the remaining debt does not become insufficient.

Article (769) Decrease in Value of Pledged Items If the value of the guarantee decreases by at least one-tenth of its value at the time of contracting, the bank may request additional guarantee from the debtor according to custom, notifying them of the intention to sell the pledged securities or goods if they fail to comply. The bank may conduct the sale according to the legal provisions regarding the sale of pledged items. The bank may recover any remaining right it has not satisfied from the proceeds of the sale.

Article (770) Crediting Deposits as Security for Pledge If cash deposits, goods, or securities are credited without specifying their details to secure one or more debts, or if the bank is given the right to dispose of them, the bank is only obligated to return the amount or the portion of the goods exceeding the secured debt. The excess is determined based on the value of the goods or securities at the time the debt matures.

Chapter Ten

Current Account

Article (771) Definition Current account: A contract by which two persons agree that debts arising from operations conducted between them, such as the delivery of cash, funds, or negotiable commercial papers, etc., are credited to the account through mutual and interlaced payments. These debts are compensated for one by one through a final settlement resulting in the account balance at its closure. The balance is claimable upon the agreed maturity date. If not claimed for payment, it is considered a new first installment for a new account, restarting the contract for an unspecified period.

Article (772) Overdraft Account The current account may be open to both parties or open to one party only, as agreed by the parties.

Article (773) Account with Operations If the items of the current account include monetary debts valued in different operations or dissimilar items, the parties may agree to include them in the account, provided they are credited in separate sections observing similarity in the payments they contain. The parties must declare that the account retains its unity despite the multiplicity of its sections. The balances of these sections must be transferable so that at the time specified by the parties or at the latest at the closure of the account, clearing can be conducted to extract a single balance.

Article (774) Debts Excluded from Current Account The current account does not include non-clearable debts. If the contract is between merchants, the current account does not include debts outside the scope of activity of each of them.

Article (775) Disposition of the Balance Ownership of the cash and funds credited to the current account transfers to the party who receives them. Each party to the current account may dispose of their credit balance at any time, unless otherwise agreed.

Article (776) Commission and Reimbursement of Expenses The existence of a current account does not prevent the claim for commission and the reimbursement of expenses related to the transactions arising from it, and the account secures these rights unless otherwise agreed.

Article (777) Effects of Entry in the Account The entry of a debt in a current account does not prevent the exercise of the lawsuit and payment related to the process from which the debt arises, and if the process is declared void, annulled, rescinded, or dissolved, the payment related to it is deleted from the account.

Article (778) Secured Debts If the debt entered in a current account is accompanied by a real or personal guarantee, the contracting party has the right to rely on the guarantee to collect the existing balance in their favor upon the closure of the current account, up to the amount of the secured debt. The same rule applies if the debt is accompanied by a joint guarantor. If the law requires certain procedures for the formation of the guarantee or for invoking it against third parties, it does not transfer to the balance, and it may not be invoked except from the date of completion of those procedures.

Article (779) Loss of Special Characteristics of the Debt Debts incurred by one party, if entered into the current account, lose their special characteristics and independent entity, and are no longer individually subject to payment, set-off, or extinction by prescription.

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Article (780) Entry of Debts on Third Parties The entry of a debt on a third party in a current account presumes it is subject to the condition (receipt of its value), and in this case, if the debt is not paid, the creditor has the option either to demand payment from the debtor or to delete the entry from the account and return the rights of the entry owner to them. The creditor may also delete the entry from the account if they do not obtain a result in the lawsuit filed against the debtor.

Article (781) Non-Separability of the Current Account The items of the current account as a whole are not subject to separation before the closure of the account and the extraction of the final balance. Only the closure of the account gives rise to the global set-off of all items of the account.

Article (782) Attachment on the Current Account The creditor of one of the parties to the account may attach the credit balance of their debtor at the time of attachment while the account is in operation. It is not permissible to affect the rights of the attached party by disposing of new payments made after the date of attachment. The attachment is declared to the bank branch where the attached party's account is held.

Article (783) Closure of the Current Account The account is closed if five years have passed from the date of its last transaction, and the balance is transferred to the suspended account for unclaimed balances. If the account owner does not claim the balance within fifteen years from the date of its transfer to the suspended account, it vests in the General Treasury.

Article (784) Current Account Statement The bank sends a statement of the account to the account owner at least once every two months, including the account movement and the final balance. The account owner has the right to object to what appears in the statement within fifteen days from the date of receipt. If this period expires without objection, the account owner is deemed to have agreed to what appeared in the statement.