Lecture 3 Negotiable Instruments (2)

acceptance;
To determine the drawer’s legality of his issuing
behavior;

Not required by UK BEA (1882). (a) That it is not dated;
Art. 3 (4) A bill is not invalid by reason—
Do Learn it by Heart! It takes about five minutes to learn
perfectly and once you get it into your head, you will never forget it.
It says:
3
Definition (2/3)
15
Absolutely Required (5/8)
6. Date of issue (p44)
To determine the expiry date;
To determine the paying date (optional);
To determine the date of presentation and
8
Specimen (4/5)
Accepted Payable on 20 July 2010 at Mandurah Signed Buyer Ltd 10 May 2010 On 20 July 2010, fixed Pay Sellers Ltd or order The sum of 10,000 dollars Signed Sellers Ltd To: Buyer Ltd
13
Absolutely Required (3/8)
3. A fixed amount of money (a sum certain in money) ? “about USD500”;
“$500” (for a foreign bill of exchange);
“with interest clause but no specific interest rate”; “payment is to be effected in terms of another currency but no specific exchange rate”; ? discrepancy between amount in words and in figure
2. An unconditional “order（entrust）” to pay；
3. A sum certain in money;
4. Name of drawee/payer;
5. Name of payee;
6. Date of issue;
7. Drawer‟s signature
18
Art. 13
16
Absolutely Required (6/8)
7. Drawer’s Signature: to authenticate a bill of exchange
“a handwriting signature, its facsimile or
an equivalent authentication effected by any other means” (UNCITRAL, 1988)
Absolutely Required (8/8)
汇票必须记载下列事项 （中国票据法第22条）
表明“汇票”的字样 无条件支付的委托 确定的金额 付款人名称 收款人名称 出票日期 出票人签章
汇票上未记载上述规定事项之一的，汇票无效。
19
Relatively Required (1/2)
(BEA, 1882, Art. 3)
4
Definition (3/3)
汇票是出票人签发的委托付款人在见票时或 者在指定日期无条件支付确定的金额给收 款人或持票人的票据（中国票据法第十九 条）
A draft is a three-party instrument that is an unconditional written order by one party that orders the second party to pay money to a third party.
9
Specimen (5/5)
Drawn under XYZ INTERNATIONAL BANK, LTD., SINGAPORE L/C No.12345. Dated 20 JAN. 2005 Payable with interest @......%
No. DA6789 Exchange for USD76,000.00. Shanghai, 10 MARCH 2005
required by both UK BEA (1882) and Geneva
Uniform Law (1930)
Correct expressing way (p43)
BEA Art.3 (3): An order to pay out a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional.
At ****** sight of this FIRST of Exchange (Second of Exchange being unpaid) Pay to the order of BANK OF CHINA. SHANGHAI the sum of SAY UNITED STATES DOLLARS SEVENTY SIX THOUSAND ONLY To: XYZ INTERNATIONAL BANK LTD.,
Exchange” or “Draft” note or a check
to distinguish a B/E from a promissory
not required by UK BEA, 1882
12
Absolutely Required (2/8)
2. An unconditional order (entrust) to pay
If necessary, state its address.
5. Name of the Payee
Three different ways of writing the
payee:(P45)
“Pay bearer/holder” (《中国票据法》和
《日内瓦统一法》不允许)
BEA1882 Art.5~8
A Bill of Exchange is an unconditional
order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to, or to the order of a specified person, or to bearer.
5
2.2.2 Specimen(1/5)
6
Specimen(2/5)
Exchange for US$10,000.00 Hong Kong, May 5th, 2010
At sight pay to the order of Shanghai Textiles Import & Export Corporation the sum of US dollars ten thousand only for value received. To: City Bank, N.Y. Branch.
At 30 days sight pay to the order of ABC Bank the sum of one thousand US dollars only for value received. To: City Bank, N.Y. Branch. New York, USA For Shanghai Textiles Imp. & Exp. Corporation General manager (signature)
New York
U.S.A. For Shanghai Textiles Import & Export Corporation General manager (signature)
7
Specimen (3/5)
Exchange for US$1,000.00 2010 Shanghai, March 5,
Lecture 3
Chapter 2 Negotiable Instruments（2/3）: Bill of Exchange
Bill of Exchange (B/E) s
Types
Players Acts