Credit titles

The credit guarantee is a document that contains a credit right and represents the obligation of this debt with the information written on it.

The most popular securities are checks, bills of exchange, promissory notes, and promissory notes.

How Credit Values ​​Work

There are two structures for the operation of credit instruments: payment order and payment promise. The first has three agents and the second has two agents.

The  payment order  occurs when the drawer or issuer delivers the order to another agent for payment, known as the drawee. Who receives in writing and who should receive the money, is known as the beneficiary. This is the case with checks and bills of exchange.

In the case of checks, for example, a drawer is the person who delivers the check to a beneficiary, who has the option of exchanging money at the bank, the drawee.

The  promise to pay  involves the promisor and the beneficiary, that is, the one who issues a promise to pay and the creditor who will receive the debt later. This is the case, for example, with promissory notes.

In addition to these, there are other characteristics in each credit instrument that configure its operation, known as  withdrawal, acceptance, endorsement and guarantee  .


The withdrawal is the issuance of the credit title made by the drawer (issuer), and where the legal figure of the drawee and the beneficiary appears, also known as the borrower or creditor. There is withdrawal only on money orders.

To accept

Acceptance is the authorization that validates the operation of the credit instrument. In the case of bills of exchange, the credit becomes valid only after the drawee accepts that he can pay the beneficiary, in this case known as the “accepted”.

Therefore, for the validation of the title, the name and signature of the acceptor must appear, which, if they are on the back of the document, must be accompanied by the word “accepted”. Without this authorization, the beneficiary must protest the title to receive their amounts.


The endorsement is known for the transfer of ownership of the title. It occurs, for example, when a beneficiary uses its collateral to pay another debt and, in this case, transfers the right of receipt to another agent.

The credit note does not contain an endorsement if it is written “on demand” and can be approved if it is “on demand” or if there is no clause present.

The transferee is known as an endorser and the receiving agent is an endorser. It should also be considered that the endorser can only transfer the full amount of his credit guarantee.


The guarantee is a statement that can be included in the title of credit as a guarantee of its payment, by including another agent, known as a “guarantor” and who assumes the obligation to pay the debt. Under these conditions, the drawee is known as “endorsed.”

The guarantee is different from the guarantee, since it is present in the credit instruments, while the guarantors are presented in civil contracts.

Principles of values

In corporate law, credit instruments have some basic principles that characterize their operation.

  1. Principle of Cartularity:  the title must exist as a material document;
  2. Principle of literality:  only what is written is validated;
  3. Principle of autonomy:  each person who participates in the title assumes their autonomous obligation;
  4. Principle of abstraction:  the title does not depend on what was the reason for the agreement.

These are only principles that have marked the credits since their creation and that, in some cases, may not be integral to the nature of the guarantee. Duplicates, for example, are linked to the purchase and sale contract and are therefore linked to the origin of the credit.

In the same way, credit values ​​can differentiate between being  tied  to a specific standard, such as checks, and   standard- free , such as bills of exchange or promissory notes.