Official government website of the Government of the Kingdom of Saudi Arabia How to verify

Links to official Saudi educational websites end with edu.sa

All links to official educational websites of government agencies in Saudi Arabia end with .edu.sa.

protocol for encryption and security. HTTPS for encryption and security.

Secure websites in the Kingdom of Saudi Arabia use the HTTPS protocol for encryption.

Registered with the Digital Government Authority with no: 20250413538

Colleges

Section list

Commercial Paper and Banking in the Saudi Comparative System

Course Description: Part One: This section studies the provisions of a promissory note, including its definition and characteristics, the substantive and formal conditions for its creation, the provisions for its circulation, guarantees for its payment, and provisions for its settlement, in addition to explaining the provisions of a bill of exchange. Part Two: This section studies the provisions of banking operations, which include: bank accounts (simple accounts and current accounts), bank deposit operations (cash, checks, and safe deposit box rentals), bank credit operations (loans, simple and documentary credit, and letters of guarantee), and the discounting of commercial paper.

Credit hours: 3

Objectives of the course :

1. Statement of the concept of commercial papers, their characteristics and functions, and the foundations on which the exchange system is based.
2. Explanation of the nature of a promissory note, its substantive, formal, and optional conditions, and the penalty for non-compliance.
3. Review of bill of exchange trading provisions, including: endorsement in blank, endorsement for collection, and endorsement as security.
4. Statement of guarantees for the payment of the bill of exchange.
5. Clarification of the provisions of payment and recourse on a bill of exchange, and forfeiture and statute of limitations.
6. Review of banking operations, their characteristics, and the legal rules governing them.

Course outputs :

Knowledge and understanding:
1- The student understands the concept of banking operations and their importance.
2. The student will classify banking operations
Skills:
1- The student differentiates between types of commercial papers
2- The student will identify the means of resolving commercial paper disputes.
Values, autonomy and responsibility:
1- To adhere to Islamic values and professional ethics, and to participate in finding solutions to societal issues.
2. To take responsibility in individual and group work

Additional information:

Course Topics:
Introduction to Negotiable Instruments, Their Functions, and Characteristics + Foundations of the Law of Negotiable Instruments
Creation of a Bill of Exchange (Substantive and Formal Conditions) and Sanctions for Breach.
Trading of a bill of exchange (endorsed, on behalf, as security).
Guarantees for payment of the bill of exchange value. .
Provisions for the payment of a bill of exchange and recourse against the obligors
Provisions of a promissory note and a check.
Midterm exam
Banking (Definition and Characteristics)
Bank Accounts (Savings, Checking, and Deposit Accounts).
Deposit operations (bank cash deposits, check deposits)
Safe deposit box rental - Bank transfer.
Checking account
bank credit operations - loans
Simple dependency
Documentary credit and bank guarantee

Last updated: 2026-04-16