The different Role of the Bank in Dealing with Commercial Papers in the Saudi System: A Comparative Study

Dr. Saad bin Saeed Althiabi
Associate Professor – Department of Law
College of Business – University of Jeddah – KSA


The bank plays a large and important role in the scope of commercial papers, and this role varies according to its position towards it as it may play the role of agent of the original debtor (drawee) and fulfill the debt on his behalf, and he may play the role of the holder’s agent and collect the debt on his behalf, in addition to that, the bank may be the drawee of the commercial paper. On the other hand, the commercial paper is sometimes referred to as a transfer, so the bank is the party to which it is referred while the client is the transferee. The broad scope of the bank’s role becomes evident, therefore, in relation to commercial papers in general, as well as the importance of the powers it undertakes over them in its various relationships with clients.

Keywords: bank, commercial paper, check, draft, fulfillment.

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