Check function analysis and rights holder in guaranteed check

Document Type : Research Paper

Author

Assistant Professor at Islamic Azad University of Mashhad

Abstract

The primary function of the check is that it is used as ainstrument in commercial and non-commercial transactions. In order to fulfill this role, the order for payment of the amount stated in the instrument must be immediate. However, the identification of certain features, and as well as the principles governing this instrument, have led individuals to issue promising check or as a guarantee instrument. An issue that seems to run counter to its function. The use of checks in this regard raises the question of whether such writing may be subject to the rules governing on negotiable instruments . This paper is based on the check that although promising checks are contrary to the primary function of this instrument as an instant payment instrument, , features and principles governing negotiable instruments, as amended by the Issuing Check Law. However, issuing a check to ensure that the objective obligations of this instrument are met by the issue and function of this instrument as an instant payment instrument not only excludes it from the rules and regulations governing check and generally negotiable instruments, but also checks in that regard as a guarantee instrument. Like a bank guarantee, it cannot be recovered unless it is required to fulfill the original obligation and to prove that it has not been fulfilled.

Keywords


 
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