The Scope of the Renovation Effect of crediting Payments in Current Account (A comparative study)

Abstract

      This study deals with the scope of the renovation effect of crediting payments in the current account; the study divides the subject into two sections: the first section discusses the extent to which the original debt is affected by the renovation principal, while the second section discusses the aspects of the relation between original debt and its guarantees from one side, with the payments in the current account from another side, the inductive, analytical and comparative approaches were used.

    The study aims to clarify the Jordanian trade law provisions about the subject of study, in order to indicate the extent of legal protection provided by the articles governing the current account, whether for the public interest or for the creditors of the client who has the account.

   The study concluded that, the Jordanian legislator completely interrupting the relation between the original debts and the payments entered the account, this entails the risk of exploiting the current account for the purposes of debtors smuggling their money to prevent it from being seized by creditors, and using the account to launder illegal funds.

     Therefore, the study recommended the need to make amendments to the articles governing the current account so that the right to sue and litigate regarding the original debt remains in place after entering the account.