The Importance of the bond which is issued for the order of in documenting debt
The process of documenting debts has great importance in interpersonal financial transactions, especially as these transactions are based on trust and credit, so people resort to documenting debts in their financial transactions in order to preserve the rights of either the creditor or the debtor.
The importance of debt documentation for the creditor appears in the debtor’s not denying the debt, and also responding to the debtor’s claim that the debt is less than the required. Likewise, the importance of debt documentation for the debtor appears in responding to the creditor’s claim that the debt is more than the required. It is also considered for both parties as a means of proving solutions for fulfillment. By religion.
There are multiple and necessary means to document debts according to the system in the Kingdom of Saudi Arabia in order to preserve your right in financial transactions, whether you are a creditor or debtor, including documenting the debt in writing for the Almighty saying: “Oh those who believe, if you owe a debt for a fixed term, write it.” Among them is documenting the debt by testimony, and also documenting Debt in mortgage because God Almighty said, “And if you are on travel and did not find a clerk, you have received a price,” including the guarantee and guarantee … and other means of documenting debts.
And many people resort to commercial papers such as draft, check and bond for an order to document debts, and the bond is considered to be one of the best means of documenting debts because the bond is an order that is considered a credit instrument and a loyalty tool at the same time, as it is a credit tool when it is released to grant financing and a fulfillment instrument at maturity on time. The debt term or if it is due upon review.
The bond is for an order that must be written according to data specified by the commercial paper system, and it includes a clear and explicit commitment to pay a specified amount of money to the beneficiary, and the payment of this amount is either on a date specified by the bond’s creator or upon perusal.
The voucher for an order in its use for the process of documenting debts differs from the check in that the function of the check is a tool of fulfillment only, as the check is always obligated to fulfill upon perusal, because it contains only one date, which is the date of its creation, so it is payable on the day of its issuance. A date for release and another for its maturity loses its status as a check and turns into a bill, which means that it is only suitable for performing one function, which is its function as a fulfillment tool, and thus it is not suitable as a means for future transactions. As for the bond for an order besides being a fulfillment instrument, it is considered a credit instrument as it contains a date of maturity of the debt that is It is later than the date of its creation, meaning that it is deferred payment, and this gives the bond to an order the characteristic of being a credit instrument, and therefore it is suitable as a means of future transactions.
The bond for an order differs from the bill in that the bill for its establishment includes three parties, namely the drawer, the drawee, and the beneficiary, so it is assumed in the bill that there are two legal relations, the first between the drawer and the drawee and the other between the drawer and the beneficiary, so the holder of the bill (the beneficiary) when not paying him on the due date is entitled to return on The drawer, its endorsers, and others who are obligated to it, as for the bond for an order that includes two parties to its establishment, namely the drawer and the beneficiary, it is assumed that there is one legal relationship between them.
Also, the bond for an order includes a feature related to shortening the litigation procedures in the event of non-payment at the time the debt is due, which is that the recourse requirement without expenses or without protest or any other phrase indicating this meaning is included in the bond for an order when it is issued, as the commercial paper system requires that it be In the event of non-payment of the value of the bond for an order at its maturity, it is not permissible to file a lawsuit directly with the offices of adjudicating commercial paper disputes before filing a protest because of the bond for an order with the protest office first, but with the inclusion of a condition (return without expenses or without protest) in the bond for an order that grants the right to the beneficiary From filing a lawsuit with the offices of adjudicating commercial paper disputes, which gives him power in the litigation procedures.
If you want more information about the bond, we provide you with advice from a group of certified lawyers who specialize in the following issues:
– Mandatory data in the voucher for an order
– Conditions of bond to an order
– Pillars of an order
– Prescription of the bond for an order
– Invalidation of a Deed
– Revocation of a Deed
– Bond loopholes to order
– Falsification of a bond
– Denial of signing a promissory note
– A blank order voucher
– Deed for an order pending condition
– Objection to a promissory note
And to request free legal advice from a commercial papers lawyer in Saudi Arabia, do not hesitate to contact us at: 0535008888
