第三章 信用工具3.ppt

Chapter3 credit instrument(3) 3.3 promissory note(本票) 3.3.1 what’s a promissory note? A promissory note is an unconditional promise in writing made by one person (the maker) to another (the payee or the holder) signed by the maker engaging to pay on demand or at a fixed or determinable future time a sum certain in money to the order of a special person or bearer. 3.3.2 essentials to a promissory note (1) The words “promissory note” clearly indicated (2) An unconditional promise to pay (3)Name of the payee or his order (4)maker’s signature (5)Place and date of issue (6)Period of payment (7)A certain amount of money (8) Place of payment 3.3.3 characteristics of a promissory note (1) It is an unconditional promise in writing. (2)The basic parties to a promissory note are the market and the payee. The maker corresponds to the drawer as well as the drawee of a bill of exchange. (3)There is no need to accept the instrument if it is payable at a fixed or determinable future time. In all cases the maker is the primarily liable party. (4)Promissory notes other than those issued by banks are not very widely used in modern commercial transactions. Bearer promissory notes payable on demand and issued by banks are equivalent to bank notes of large denomination, which may cause inflation and prohibited by the government in many country. 3.3.4 difference between a promissory note and a draft (1) A promissory note is a promise to pay, whereas a bill of exchange is an order to pay. (2)There are only two parties to a promissory note, namely the maker and the payee (or the holder in the case of a bearer note ),whereas there are three parties to a bill of exchange, namely the drawer ,the drawee and the payee. (3) The maker is primarily liable on a promissory note, whereas the drawer is primarily liable, if it is a sight bill, and the acceptor becomes primarily liable, if it is a time bill. (4)When issued ,a promissory note has an original note only, whereas a bill of exchange may