Precautionary guarantee in commercial papers Analytical Comparative Study

Abstract

This study examined the topic (back-up security in commercial papers by analysis and comparison between Palestinian law, Egyptian law, and Iraqi law) as one of the important topics related to commercial papers. The aim of the study was to define what is reserve security in Palestinian law and compare it with other legislation, indicating the conditions on which the reserve guarantee is based, as well as the relations between the parties to the reserve guarantee and their obligations. The problem with the study was does the backup guarantee in commercial papers strike a balance between protecting holders' rights and ensuring the stability of business transactions? Is the objective of a stand-by guarantee achieved if the carrier is not satisfied with the original guarantees when the guarantor's obligation is strictly fulfilled. Finally, the researcher concluded his study by addressing a set of conclusions and recommendations that he saw at the end of the study, the most important of which is that the purpose of the stand-by guarantee is to contribute to enhancing trust among the business parties. financial security", which facilitates business transactions, and provides an additional level of financial security for holders of commercial paperwork s obligations ", which reduces the problems associated with non-fulfilment, the reserve guarantor can enjoy special rights in relation to its obligations invalidity of the secured obligation does not result in nullity of the guarantor's contingent obligation. A number of recommendations have been drawn up, the most important of which are legislative amendments that contribute to better clarifying and defining the safeguard, thus facilitating its application and enhancing its effectiveness in various business transactions in the light of the world's ongoing economic and legal changes in business and keeping pace with this development by the Palestinian legislature. Include clear legal texts on how to prove a reserve guarantee (such as a special signature) based on an official signature system or such as the signature system used in Palestinian banks, and ensure that the guarantee can be implemented quickly and effectively if needed. In view of the ongoing economic and legal changes in the world in business and keeping pace with this development by the Palestinian legislature. Include clear legal texts on how to prove a reserve guarantee (such as a special signature) based on an official signature system or such as the signature system used in Palestinian banks, and ensure that the guarantee can be implemented quickly and effectively if needed.