chaptr 2 Instruments.pptVIP

Chapter two Instruments of international settlement 2.1 An Overview of Negotiable Instruments 2.2 Bill of Exchange/Draft 2.3 Promissory Note 2.4 Check 2.1.1 What is a negotiable instrument? 2.1.2 Chief features of negotiable instruments 2.1.3 Parties to a negotiable instrument 2.1.1 Definition of negotiable instruments Negotiation : (1) The purchase by a bank of bills of exchange from an exporter in a collection, or a method of payment or settlement by bills of exchange in a documentary L/C transaction. 2.1.1 Definition of negotiable instruments a negotiable instrument is a an unconditional promise or order to pay an amount of money that is easily transferable from one person to another. full and legal title passes on delivery not necessary to give notice of transfer to the liable party free from equities or defects in title of any previous holder good faith and (5) for value 2.1.2 Features of negotiable instruments Negotiability 1) negotiation can be effected only by delivery or endorsement and delivery. 2) negotiation gives the transferee a right of action in his own name against the original promissor or acceptor Requisite in form 3) the transferee in good faith and for value can acquire a better title than that held by all his prior parties. Non-causative Requisite in form Literally determined content Presenting for payment 2.1.3 Possible Parties to a negotiable instrument 1) 出票人drawer 2) 付款人payer/drawee 3) 收款人payee 4) 承兑人acceptor 5) 背书人endorser 6) 被背书人 endorsee 7) 参加承兑人acceptor for honor 8) 保证人guarantor 9) 持票人holder Titles to a negotiable instrument Claim for payment(第一次请求权，主权利) Recourse (第二次请求权) Only when the claim of holder for payment can’t be satisfied, can recourse right be effected. 2.1.7 Negotiable instrument laws British law UK Bills of Exchange Act of 1882 US Uniform Commercial Code of 1962, Article 3 French and German law Uniform law for Bills of Exchange and Promissory Notes of Geneva of 1930