Quarterly Studies in Banking Management and Islamic Banking

The review of representation in the purchase of check’s debt with comparison regulation check in English Law

Document Type : Original Article

Authors

Sedigheh Hejini nejad 1
Hossein Taherkhani 2
Jamshid Nourshargh 2
Ahmad shams 3

1 No33. mansoty St.PH.D. Candidate of Private Law, South Tehran Branch, Islamic Azad University, Iran ShararaSt.

2 Institute of Law, STB.I.A.U, Islamic Azad University, Tehran, Iran

3 , Institute of Law, STB.I.A.U, Islamic Azad University, Tehran, Iran

10.22034/jifb.2026.543497.1645
Abstract
The use of check in banking operations debt purchase has raised issue of check’s representation and agent's joint liability, Given that in discounting, check is transferred to bank by holder, so the representative’s liability is’nt operational, but in over drafting because check is transferred to bank by issuer, inference of agent's joint and several liability strengthens bank's guarantees.
In this article, while review types of representation through comparing Articles19 and 23 of Check
Law, effect of that on purchase of checks’debt in banking operations by analytical, descriptive methods. َDespite due to principle of separability obligations an irregularity of joint and several liability, cannot be considered agent'sjoint and several liability, but this liability of Article 19 is deducted from due to extension of banking prohibitions in Article 5 and application of prohibitions in Article 21 relative to agent.
Also, establishing connectivity link among banking system, courts, Registration Office and Company Registration Office in order to recognize various types representation and information on representation’s dissolution to create joint and several liability is suggested.
In British law, the agent isnot responsible for joint and several liability and is limited to representation. Correspondingly, discounting and over drafting would be provided without debt‌ purchase contract

Keywords

liability
Discounting
Overdraft
Representation in check issuance
Purchase of check debt

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