Legal controls for discounting commercial papers in Jordanian legislation and its judicial applications legislation

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Abstract

The article analyzes the importance of defining the process of discounting commercial papers and its legal nature in Jordanian legislation and the comparative French and Egyptian legislation. This will be done by discussing the provisions contained in the aforementioned laws and the relevant judicial rulings and their adequacy in clarifying the nature of this process and its legal adaptation in light of the absence of adequate legal regulation in the Jordanian Trade Law. The study required relying on the analytical approach to analyze the legal texts, they contained to determine their effectiveness and shortcomings in discounting commercial papers and their role in providing legal protection for them. It also concluded with a set of results and recommendations, the most prominent of which is the process of discounting commercial papers, which is banking and has its own legal system, which is usually subject to the provisions of banking custom and the provisions of general rules. The Jordanian legislator did not adequately address the issue of discounting commercial papers and did not organize it in a comprehensive legal manner. This contradicts the position of the comparative legislation mentioned in this study, which included this process in its relevant laws.

Keywords: Discount, Commercial Papers, Endorsement, Payment Consideration, Bill of Exchange, Courtesy Bond, Check

Authors’ individual contribution: Conceptualization — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.; Methodology — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.; Writing — Original Draft — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.; Writing — Review & Editing — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.; Project Administration — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.; Supervision — L.A.-K., T.A.-B., M.A.A.-Q., and A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H11, K40, K49

Received: 21.03.2024
Accepted: 29.11.2024
Published online: 04.12.2024

How to cite this paper: AL-Khalaileh, L., Al-Billeh, T., Al-Qheiw, M. A., & Almamari, A. (2024). Legal controls for discounting commercial papers in Jordanian legislation and its judicial applications legislation. Corporate Law & Governance Review, 6(4), 53–62. https://doi.org/10.22495/clgrv6i4p5