Effect of dealing with the commercial paper in the original commitment

Abstract

The commercial paper does not assume that prior legal relations between the dealers are established. Legal relations may arise for the first time on the occasion of dealing with the commercial paper. If the holder presents a commercial transfer to a bank for deduction, the bank performs the transaction required in return for transferring the ownership of the cheque by signing the back of the cheque, the bank becomes a creditor, which transfers the ownership of the cheque to another through the signature on the back of the cheque, in this case, the bank becomes a guarantor, i.e. debtor, and it is clear that the transfer of ownership of the cheque through the signature on the back of the cheque is subject to the rules of the law of exchange, and is free of the previous legal association between the person who transfers ownership of the cheque to another through the signature on the back of the cheque and between the person to whom ownership of the cheque is transferred

Keywords

• commercial paper
• transfer of ownership of the cheque by signing on the back of the cheque