• Academic: Emphasizing the pivotal role of commercial paper in debt fulfillment


    ​​In a lecture organized by the Asharqia Chamber

    Academic: Emphasizing the pivotal role of commercial paper in debt fulfillment​

    Asharqia Chamber emphasized the importance of the role played by the protest offices in the local chambers of commerce and industry, in promoting the great economic role of commercial papers, achieving the desired justice in fulfilling debts, and preventing any disputes and disputes between the parties to the commercial process​.

    This came in a lecture entitled (Commercial papers and the role of protest offices in the chambers of commerce), through direct contact, presented by the Director of the Legal Department of the Asharqia Chamber, Dr. Amer Al-Qahtani, on Tuesday evening December 29/20202, during which he talked about several axes related to this topic, the first of which came under the title (Definition of commercial papers and their characteristics), and he said about them that they are formal instruments that are subject to the obligation to pay a certain amount of money on a specific date or upon perusal, and have characteristics that can be summarized by three main characteristics: their specific form according to the system and their place is always money and their ability to trade by endorsement and handling.

    As for the second axis, Al-Qahtani touched on (the economic functions of commercial paper), which he defined as a tool to fulfill debts instead of cash, and this is represented in the check, and a tool for fulfillment and credit represented in the bill and bond for an order, since the latter is usually issued on a specific date and matures at a later date. The check cannot be used as a credit instrument because, according to Article (120) of the Commercial Paper System, it is payable as soon as it is seen.

    The third axis is represented in (the types of commercial papers organized in the Kingdom), which are the bill, the promissory note, and the check. And the fourth axis dealt with the types of commercial papers in detail and defined the mandatory formal data for each commercial paper and the legal penalty for failing to one of the mandatory data.​
    In the fifth axis, Dr. Al-Qahtani (the authority that has jurisdiction in disputes related to commercial papers) explained that the execution judge in the exchange case is the competent authority considering that the commercial papers are executive bonds, and he also mentioned that the general right lawsuit in the check has become the jurisdiction of the criminal courts as of the date of 1 / 6/1439 AH. He also added that the enforcement judge does not have jurisdiction over substantive disputes related to the origin of the right due to which the commercial paper arose, and that the jurisdiction in these disputes rests with the subject judge, who may be the judge of the commercial court or the judge of the general court or other courts according to the commercial or civil nature of the relationship in which the commercial paper arose.​
    Dr. Al-Qahtani concluded his lecture by reviewing the role of the protest offices in the chambers of commerce in mediating between the parties to the commercial paper to solve it amicably in a way that achieves the common interest, and the effect of this on reducing the burden on the competent judicial authorities and avoiding the parties to the commercial paper from entering into judicial procedures.​​

© All Rights Reserved for Asharqia Chamber