Identification of common law rules applicable to securities that are classified by economic function and method of issuance

• Author: Aida Diana Dumitrescu - Stefan Mihaila
• Position: Faculty of Law and Administrative Sciences, Department of Public Law, University of Craiova, Craiova, Romania - Faculty of Police, Department of Private Law, 'Alexandru Ioan Cuza' Police Academy, Bucharest, Romania
• Pages: 31-37

AGORA International Journal of Juridical Sciences, www.juridicalj ournal.univagora.ro

ISSN 1843-570X, E-ISSN 2067-7677

No. 2 (2012), pp. 31-37

31

IDENTIFICATION OF COMMON LAW RULES APPLICABLE TO

SECURITIES THAT ARE CLASSIFIED BY ECONOMIC FUNCTION

AND METHOD OF ISSUANCE

A. D. Dumitrescu, . Mihil

Aida-Diana Dumitrescu

Faculty of Law and Administrative Sciences, Department of Public Law,

University of Craiova, Craiova, Romania

*Correspondence: Aida Diana Dumitrescu, University of Craiova, 13 “A.I. Cuza” St.,

Craiova, Romania.

Email: aida_dumitrescu@yahoo.com

tefan Mihil

Faculty of Police, Department of Private Law,

“Alexandru Ioan Cuza” Police Academy, Bucharest, Romania

*Correspondence: tefan Mihil, “Alexandru Ioan Cuza” Police Academy, 1A “Aleea

Privighetorilor”St., sector 1, Bucharest, Romania.

Email: stefan.mihaila@yahoo.com

Abstract

We can identify in the legal literature and especially in the economic one several

criteria for classification and analysis of the general category represented by securities

1

.

From the perspective of civil law, these classifications allow multiple analyzes as we

have decided to show in this study.

Keywords: title, share, warrant, nominative title, security.

Introduction

Commercial bills, also known as negotiable instruments, are considered as individual

or single titles that appear due to separate commercial operations and are used to pay or

guarantee the credit, and their common element is that they offer the holder the unconditional

right to a debenture on short or medium term, consisting of a certain sum of money.

1. Classification of securities by their circulation. Depending on their economic

function and how they were issued, securities are classified as: commercial bills, bonds and

securities.

2. Analysis of the rules of common law regarding commercial bills

Commercial bills, also known as negotiable instruments, are considered as individual or

single titles that appear due to separate commercial operations and are used to pay or

guarantee the credit, and their common element is that they offer the holder the unconditional

right to a debenture on short or medium term, consisting of a certain sum of money.

The bill of exchange, promissory note and check fall within the category of commercial

bills, except that the first titles represent both debt securities and payment instruments, while

the check is mainly a short-term payment instrument payable on demand.

1

Aida Diana Dumitrescu, Titlurile de valoare. Reglementare, doctrin, jurispruden, C.H. Beck Publishing

House, Bucharest, 2011, p. 12.