“Determination of the legal status of current account contract in light of Jordanian Commercial law provisions.”

Abstract

This research paper examined the legal status and characteristics of current bank account under Jordanian Commercial law Code number 12 of the year 1966. Despite the contradicting theories established to determine the legal status of the current account, it was found that characterizing it as a loan contract is the most suitable to its status and corresponds with the customary rules of current banking practice. Thus, the theory that deems current account as a loan contract is the most credible theory. It helps maintaining and securing the interests of both sides of the current account contract. The study finds that characterizing current account as a loan contract is consistent with its status and preserves the mutual interest of both parties to the current account (customer and bank).