《国际结算（英文）》chapter2 Instruments

INTERNATIONALSETTLEMENTChapter2NegotiableInstrument

Chapter2NegotiableInstrument

2.1GeneralIntroductionofNegotiableInstruments2.2BillofExchange2.3PromissoryNotes2.4Cheque

2.1GeneralIntroductionofNegotiableInstruments

1DefinitionofNegotiableInstrument

AccordingtotheUSUniformCommercialCodeof1952,negotiableinstrumentisanunconditionalwritingthatpromisesorordersthepaymentofafixedamountofmoney.InbroadsenseNegotiableinstrumentreferstoanycommercialdocumentoftitle.Itisanevidenceofsomeone’sownershipofmoneyorgoodsthatisactuallyunderhiscontrol,suchasinvoice,billoflading,insurancecertificate,warrant,certificateofdeposit,billofexchange,promissorynote,checkandetc.InnarrowsenseNegotiationinstrumentreferstothesecuritiesthatwiththepurposeofpaying.Thedrawersignsonthenegotiableinstrument,unconditionallyordersanotherpartyorhimselftopayacertainamountofmoneyatadeterminablefuturedate.2OpeningCaseabriefcaseofthethreenegotiableinstruments：thecashflowis：ABDCAinNewYorkimportsabatchofchairsfromBinParis,thetotalvalueis10,000dollars,ordernumber:95E03LC001,shipmentdate:July10th,2011,anditisstipulatedinthecontractthatpaymentshouldbeeffectedwithin30daysaftershipment;CinParisbuysdesksfromDinNewYorkwithtotalvalueof10,000dollars.MeanwhileCoffersfurnituretoBwhichcosts10,000dollars.Howtoissuethreedifferentinstrumentstoclearthecreditanddebtrelationamongthefourparties?cashflowWecanseeclearlyfromtheleftchartthatthecashflowgoesfromAtoBtoCandfinallyD.Inotherwords,Aisthepartythatwouldeffectpaymentfinally,andonthecontrast,Disthepartythatwouldreceivemoney.BillofExchangeIssuingBDrawerIssuesadrafttoAAAddresseeCPayeePay10,000dollarsDFinalholderendorsethedrafttoD

DpresentsthedrafttoA,Apays10,000dollars,DreturnsthedrafttoAExampleofDraftIssuingPromissoryNoteIssuingAPAYERBPAYEECDAissuesapromissorynotebyitself,promisestopay10,000dollarstoB,BendorsesthepromissorynotetoC

CendorsesthepromissorynotetoDDpresentsthepromissorynotetoA,Apays10,000dollars,DreturnsthenotetoAExampleofPromissoryNoteIssuingChequeIssuing(AhasanaccountinABCbank)APAYERBPAYEEDCIssuesachequeinfavorofBBendorsesthechequetoC

CendorsesthechequetoDABCBANKDpresentsthechequetoABCbank,ABCbankpays10,000dollars,DreturnsthechequetoABCbankExampleofChequeIssuing3CharacteristicsofNegotiableInstrumentscharacteristicsNegotiabilityRequisiteinFormWordsRestrictionReturnabilityRightSettingPresentmentNon-causativeNature1)RightSetting——meansalltherightsoftheinstrumentsisfollowedbytheissuingofinstrument:Therightoftheinstrumentsemergedbyissuingofinstruments,therightoftheinstrumentsistransferredbydeliveringofinstruments,therightoftheinstrumentsisexercisedbypresentingofinstruments.2)Non-causativeNature——meanswhenthecreditorexerciseshisright(askthepayerforpayment),heneedn’tindicatesthepayerthereason.Intheopeningcase,whenDpresentsthedrafttoAforpayment,itneedn’tindicateAthereason.3)Negotiability——meansthetitleofinstrumentscanbepassedfrompersontopersonbymerelydeliveryorbyendorsementanddelivery.4)WordsRestriction——meansalltherightofinstrumentsaredeterminedaccordingtothewrittenwordsoftheinstrument.Creditoranddebtorisonlybondedbythewordsoftheinstrument:creditorcannotrequiresomethingfromdebtorbeyondthewordsoftheinstrument,anddebtorcannotusesomethingbeyondthewordsoftheinstrumenttopleadtocreditor.5)Requisiteinform——meansannegotiableinstrumentmustbeintheformofadocumentcontainingcertainrequireditems.Differentcountrieshavedifferentlawsonnegotiableinstrumentandhencedifferentrulesandregulationsontheformofanegotiableinstrument.6)Presentment——meanswhenthecreditorasksdebtortoperformliabilityoftheinstrument,itmustpresenttheinstrument.Iftheholderdoesn’tpresenttheinstrument,thedebtorhasnoliabilitytopay.7)Returnability——meanswhentheholderreceivespayment,itshouldreturnthesignedinstrumenttothepayer.Becauseofthereturnabilityoftheinstrument,itcannotbenegotiatedwithoutlimit,itsnegotiationisendeduponpaymentonduedate.4LegalSystemofNegotiableInstrumentAnglo-AmericanLawBillsofExchangeAct1882UK；1882;maincharacteristics:1、itprotectsthenegotiabilityofinstrumentbylaw.Ithasestablishedanintegratedsystemofnegotiationforinstrument;2,itprotectsthecreditandpaymentfunctionoftheinstrument;3,itprotectstheinterestsofthebankandimproveitsefficiency.UniformCommercialCodeUS;establishedin1952andrevisedin1962；Itisastandardcodewithrightsandobligationsasprincipalpart.Itcomposesauniformarticlerelatingtobillofexchange,promissorynoteandchequetoavoidtherepetitionofprovisions.ContinentalLawOthersGenevaConventionof1930Differences:

1,regardingtotheholderofbillofexchangeafterforgedendorsement,ContinentalLawconsidershecanbecomeaholderwhileAnglo-AmericanLawconsidershecannotbecomeaholder;2,thereisintegratedregulationsabouttheactofconfirmationandconsiderationinContinentalLaw,Anglo-AmericanLawonlyhasvaguerulesConventionProvidingaUniformLawforInternationalBillsofExchangeandInternationalPromissoryNotesandConventionProvidingaUniformLawforInternationalChequesInordertodiminishthedifferencebetweenAnglo-AmericanLawandContinentalLaw,afterrevisingforovertenyears,thesetwodraftconventionswereapprovedin1988.Later,theunitednationshasformallyfiledthetwoconventionstodifferentcountriesforcomment.Peoples’RepublicofChinaLawonNegotiableInstrumentsWasadoptedon10thMay1995,withthecharacteristicsofthefirstregulativelawonnegotiableinstrumentsinchina.

Wasrevisedon28thAugust,2004,showingChinesenegotiableinstrumentlawhaskeptpacewiththedevelopmentofinternationalinstrumentlaw..2.2BillofExchange

1

Definition

ofBillofExchange

BillsofExchangeAct1882:BillofExchangeis“anunconditionalorderinwriting,addressedbyonepersontoanother,signedbythepersongivingit,requiringthepersontowhomitisaddressedtopayondemandoratafixedordeterminablefuturetimeasumcertaininmoneytoortotheorderofaspecifiedpersonortothebearer.”2EssentialItemsandUnessentialItemsofBillofExchange1The“BillofExchange”wording2UnconditionalOrdertopay3DateandPlaceofIssue4Tenor5ExactAmount6NameandPlaceoftheAddressee7NameofPayee8NameandSignatureoftheDrawerSampleofdraftACCEPTED12thApril,2005

DueOn11thJuly,2005

ForBankofEurope,London(Signed)

⑤

③ExchangeforGBP5000.00,Beijing,5thApril,2005④

②

⑦At90daysaftersightpaytoCCo.orOrder⑤ThesumofGreatBritishpoundsfivethousandonly⑥ToBandofEurope,⑧ForACompanyLondonBeijing

⑧(signature)1)The“BillofExchange”wording：Theword“Exchange”or“BillofExchange”or“Draft”mustbeclearlyindicatedonthefaceofabillofexchangeinordertodistinguishitfrompromissorynoteandcheck.2)UnconditionalOrdertopay：meansthepayingorderonthedraftshouldbeunconditional,withoutanyextrarequirementterms.3)ExactAmount：Theamountofmoneyonthedraftshouldbeexactandunique,thatistosay,whenthedebtorispresentedbythedraft,itmustknowclearlyhowmuchmoneyheneedstopay.4)DateandPlaceofIssue：Thedateofissuinghasthreemainfunctions:identifyingtheduedate；identifyingthepresentingperiodofadraft.Inthecaseofsightdraft,thecreditorshouldmakepresentationwithinoneyearafterissuingdate;identifyingthecapabilityofissuer.5)NameandPlaceoftheAddressee：Addresseereferstothepartythatreceivesthepayingorder.Iftheaddresseedoesn’tsignonthedraft,itdoesn’tresponsibleforpayment.6)NameofPayee：Nameofpayeeisalsocalledtheorderofthedraft,usuallytherearethreekinds:RestrictiveOrder“paytoAonly”；”paytoAnottransferable”;“paytoA”and“nottransferable”.Demonstrativeorder“paytotheorderof”；”paytoAororder”or“paytoA”.PayabletobearerPaytobearer.7)NameandSignatureoftheDrawer：Draweristhepartyissuesthedraft.Ifthedrawerisaagentthatrepresentsacompany/corporation/bank/organization,heshouldadd“For”or“onbehalf”or“Forandonbehalfof”or“Perpro”beforethenameofthecompany/corporation/bank/organizationaswellasaddhistitleafterthesignatureofhimself.

Forexample:ForABCCo.Ltd.LondonJohnSmithManager8)Tenor：meanstimeofpayment,therearethreetypes:Billspayableatsight/ondemandpayto…….(B)BillspayableatadeterminablefuturetimeBillspayableat**days/**month(s)aftersight.b.Billspayableat**days/**month(s)afterdate.Billspayableat**days/**month(s)afterB/Ldate/shipmentdate/Stateddate.(C)Billspayableatafixedfuturedate

OnJune1stfixedpayto…3PartiestoBillofExchangedrawerpayee/Firstendorserendorsee/holderpayer/acceptorissueeconomicrelationshipAskforacceptanceorpaymentendorseendorseendorsee/holder(1)Drawer——Itreferstothepartythatissuesanddeliversthedraft.Itusuallyhassomeeconomicrelationshipwithboththepayeeandtheaddressee.(2)Addressee/Drawee——isthepartywhoreceivesthepayingorder.Itbecomesaacceptorwhenitacceptsthedraftandsignsonthedraft.(3)Payee——Itisthepartywhowouldreceivemoneyindicatedonthefaceofthedraft.Payeecanbepaiduponpresentationofthedraftoritcantransferthedrafttoothers.(4)Endorser/EndorseeEndorser：

meansthepartythatsignhisnameonthereversesideoftheinstrumentandtransfertheownershipanditsrighttoanotherparty.Endorsee：thepersontowhomtheinstrumentistransferredToanendorsee,alltheendorsersonthedraftbeforehimiscalledpriorparties,andtoanendorser,alltheendorseeafterhimarecalledsubsequentparties(5)Guarantor——Guarantordoesnotbelongtothebasicpartytoadraft,itreferstothepartywhoguaranteestheactionsofthedrawer,endorser,acceptorandacceptorforhonor.Guarantorbearsthesameliabilityasthewarrantee.(6)Acceptor——Itisthepartythatacceptsthedraft,makesacceptanceonthefaceofadraft,andpromisestopayatmaturitydate.Acceptance

meanstheacceptoragreesthepayingorderfromthedrawer.Acceptoristheprincipaldebtorofthedraft,holder,endorser,drawercanclaimpaymentfromacceptor.(7)Holder——Holderispayeeorendorseeorbearer,itisthepartythatisholdingthedraftatpresent.Itisthepartywhichholdsthedraftandasktheaddresseetopay.Holderincludesholderforvalueandholderinduecourse.Value/consideration：meanssomethingsupportsatransaction,suchasmoney,service,goodsandetc.Holderforvalueapersonwhopossessesaninstrumentforwhichvaluehasbeengivenbyhimselforbysomeotherpersonpriortohim.Inotherwords,oncevalueisgivenforabill,theholdergivingvalueandallsubsequentholdersareholdersorvalue.Holderinduecourseanindividualwhoacquiresanegotiableinstrumentingoodfaith.AccordingtoBillsofExchangeAct1882,aholderinduecourseshouldmeetthefollowingrequirements:Theendorsementofhispriorpartyisauthentic;Draftiscompleteandregularonitsface;Draftisn’texpireuponreceiving;4LegalactstoBillofExchange1)Draw/IssueItistheactionofissuingadraft,signinganddeliveringit.AccordingtotheUKBillofExchangeAct1882,issuemeans“thefirstdeliveryofabillornote,completeinformtoapersonwhotakesitasaholder”.Issuecontainstwoactions：todrawandsignthedraft,todeliverthedrafttothepayee.2)

EndorsementEndorsementisthesigningonthebackofadraft,transferringtheownershipanddeliveringtotheendorsee.Onlywhenthepayeeisdemonstrativeorder,theactofendorsementwillcomeintobeing.Ifthepayeeisrestrictiveorder,thedraftcan’tbeendorsed;Ifthedraftisbearerorder,thedraftneednottobeendorsedSpecialendorsementPaytoD/PaytoDororderForC

signedB.BlankendorsementForC

signedC.RestrictiveEndorsementPaytoDonly/PaytoDnottoorder/PaytoDnotnegotiable/PaytoDnottransferable/PaytoDforaccountof…

ForC

Signed3)

PresentationTheactionofpresentingthedrafttothepayerforacceptanceorpaymentiscalledpresentation.Therearetwotypesofpresentation:Presentationforacceptanceandpresentationforpayment.Whenthedraftisatimedraft,beforethedateofmaturity,theholderpresentsthedrafttotheaddresseeforacceptance.Theaddresseesignshisnameonthebackofthedraft,promisestopayonduedate.Whenthedraftisademanddraft/timedraft,uponthematuritydatetheholderpresentsthedrafttotheaddresseeformoney。4)

AcceptanceAcceptanceisanactionbywhichthepayerpromisestoeffectpaymentatthematuritydateofthedraft.Thepayerhasnoresponsibilityuntilitacceptsthebillinsuchawayastosignifyacceptanceofliabilitytopaythemoneystatedinthebill.A.Generalacceptance:Itmeanstheacceptorsignsonthefaceofthedraft,acceptingthedrawer’sorderwithoutrestrictivestatement,forexample:

Accepted

March5th,2011

ForAcompany,LondonsignedB.Qualifiedacceptance:Itmeanstheacceptorsignsonthefaceofthedraft,usingspecificwordingtochangetheeffectafteracceptance.a.Conditionalacceptance：Accepted

April15th,2011PayableondeliveryofBillofLadingForAcompany,Tokyo

signedb.Partialacceptance:Accepted

July18th,2011PayableforamountofUSD10,000only

ForAcompany,NewYork

signedd.Qualifiedacceptanceastotime：Accepted

Jan19th,2011Payableat6monthsafterdateForACompany,Australia

signedc.Localacceptance:：Accepted

Aug17th,2011PayableatTheHamburgBankandthereonly

ForABCBankLtd.,London

signed5)

PaymentPaymentofabillisgenerallybeeffectedbytheaddresseeoracceptor.Paymentdateofsightdraftispresentingdate,paymentdateoftimedraftspecifyingpayableafter***daysaftersightiscalculatedfromtheacceptingdate.Theholderpresentsthedraftonmaturitydate,afterpaymentinduecourseismadebypayeroracceptor,theliabilityofthedraftthusbedischarged.Dishonoredbynon-acceptance（happensinusancedraft）：Whenabillisdulypresentedforacceptancebutisnotacceptedwithinreasonabletimeorspecifiedtime,thepersonpresentingitmusttreatitasdishonoredbynon-acceptanceDishonoredbynon-payment：Whenabillisdulypresentedforpaymentbutpaymentisrefusedorcannotbeobtained,thepersonpresentingitmusttreatitasdishonoredbynon-payment.6)DishonorActofdishonorisafailureorrefusalofacceptanceorpaymentofabillofexchangewhenpresented.(1)NoticeofDishonor：anoticemadebytheholdertoinformallhispriorpartiesaboutthedishonor.(2)Protest:acertificateundersealdrawnupandsignedbyaNotaryPublic(legal)orcourtorbankingassociationsorotherauthorizedpersoninthedishonorplaceforthepurposetogivingevidencethatabillofexchangehasbeenpresentedbyhimforacceptanceorforpaymentbutdishonored.7）

RightofRecourseRecoursereferstoactoftheholdertodemandforpaymentfromthedrawerandendorserincasethatthedrafthasbeendishonored.Theholdermayexecuteitsrightforrecourseonlywhenhehascompletedthefollowingprocedures:Topresentthedrafttothepayerforacceptanceorpaymentanditisdishonoredbynon-acceptanceornon-payment;Togivenoticeofdishonortoitspriorpartyinonebusinessdayafterthedateofdishonor;Topresentaprotestfornon-acceptanceornon-paymentinonebusinessdayafterthedateofdishonor.8）

Guarantee/avalActofguaranteeisperformedbyarelativepartycalledguarantor,whoengagesthatthebillwillbepaidonpresentmentifitisasightbilloracceptedonpresentmentifitisausancebill.Theguarantorwillalsoguaranteethepaymentonpresentmentifitisaacceptedusancebill.Theguarantorstandssurelyforthedebtorsuchasdrawer,endorser,oracceptorandassumeshisindebtednesstotheholder.PERAVAL/PAYMENTGUARANTEEDGivenfor____________________(guarantee)Signedby______________________(guarantor)Datedon__________________(date)(signature)5TypesofBillofExchangeBillofExchangeAccordingtothepaymenttimeSight/DemandBillTime/usanceBillAccordingtothedrawerandpayerofthedraftCommercial/Trader’sBillBanker’sBillAccordingtowhetherthebillisaccompaniedwithshippingdocuments,DocumentaryBillCleanBillAccordingtotheBillsofExchangeAct1882InlandBillForeignBill

2.3PromissoryNotes

1DefinitionofPromissoryNoteAccordingtoBillsofExchangeAct1882Article83,Apromissorynoteisanunconditionalpromiseinwritingmadebyonepersontoanothersignedbythemaker,engagingtopay,ondemandoratafixedordeterminablefuturetime,asumcertaininmoney,to,ortotheorderof,aspecifiedpersonortobearer.2EssentialItemsofPromissoryNoteBasedonBillofExchangeAct1882andGenevaConventionof1930,itcanbeconcludedthattheessentialitemsofpromissorynoteincludes:“PromissoryNote”wording;Anunconditionalpromisetopay;

Nameofthepayee;Signatureofthemaker;

Placeanddateofissue;Tenor;Asumcertaininmoney;Placeofpaymentandetc.国际结算的支付工具—本票“PromissoryNote”wordingAnunconditionalpromisetopayAsumcertaininmoney;NameofthepayeePlaceanddateofissuePlaceanddateofissueSignatureofthemaker图片来源：Tenor3MainTypesofPromissoryNotePromissoryNoteAccordingtothemakerofthenoteTrader’sNoteBanker’sNoteAccordingtothemakerofthepaymenttimeSightnoteTimenoteInternationalmoneyorderCentralbanker’snoteNegotiablecertificatesofdeposit4DifferencesbetweenBillofExchangeandPromissoryNoteBillsofExchangePromissoryNote(1)Anordertopay.(1)Apromisetopay.(2)Athreepartyinstrument.(2)Atwopartyinstrument.(3)Whenpayableafterdate/sight,abillneedtobeaccepted.(3)Neverneedtobeaccepted.(4)Beforeacceptance,thedrawerisprimarilyliableforpayment,butafteracceptancetheacceptorbecomesprimarilyliableforpayment.(4)Themakerisalwaysthepartyprimarilyliableforpayment.(5)Canbedrawninaset.(5)Onecopy.(6)Foreignbillsneedprotestingondishonortoretaintheliabilityofpriorparties.(6)Protestisneverneeded.2.4Cheque1DefinitionofChequeChequeisalsocalledcheck,accordingtoBillsofexchangeAct1882,itis“anbillofexchangedrawnonabankerpayableondemand”Itisanunconditionalorderinwriting,signedbythepersongivingit,requiringthebankertowhomitisaddressedtopayondemandasumcertaininmoneyto,ortotheorderof,aspecifiedpersonortobearer.2EssentialItemsofChequeAccordingtodifferentstipulationsindifferentnegotiablelaw,essentialitemsofchequeincludes:“Cheque”wording;Anunconditionalordertopay;Nameandaddressofpayingbank;

Nameandsignatureofthedrawer;

Dateandplaceofissue;Specifyingthetenorisatsight.Ifnotsoindicated,itisdeemedtobeatsight;Asumcertaininmoney;

Nameofpayeeorthenominatedperson.3CrossingofCheques1）

TypesofCrossingGeneralcrossing:meansnonameofthecollectingbankisspecifiesonthechequeandthechequecanbecollectedthroughanybank.Itincludes:Nonameofabankisindicated,theformofthistypeofcrossingisasfollows:B.Adding“banker”betweenthetwoparallels,theformofthistypeofcrossingisasfollows:C.Adding”&Co.”betweenthetwoparallels,theformofthistypeofcrossingisasfollows:D.Adding“Notnegotiable”betweenthetwoparallels,whichmeans“Donottransferthecheque”,ifthechequeistransferred,therightoftransfereecannotexceedsofitspriorparty.Theformofthistypeofcrossingisasfollows:E.Adding“AccountPayee”betweenthetwoparallels,it’sinstructionsforthecollectingbank,