《国际商贸》英语Chapter 4 credit instruments.ppt

Credit Instruments Introduction Characteristics of a Negotiable Instrument Parties and Acts Chapter 4 Introduction A credit instrument is a written or printed paper by means of which funds are transferred from one person to another. Credit instruments most commonly used in international payments and settlements are bills of exchange, promissory notes and cheques. 4.1 Characteristics of a Negotiable Instrument A negotiable instrument and the right embodied are capable of being transferred by delivery, either with or without endorsement. The person to whom a negotiable instrument is negotiated can sue on it in his own name. The person to whom a negotiable instrument has been negotiated and who takes it in good faith and for value, obtains a good title to it. As a Means of Payments As a Credit Instrument As a Negotiable Instrument 4.2 Functions of a Negotiable Instrument 4.3 Parties to a Negotiable Instrument Drawer Drawee Payee Acceptor Endorser Endorsee Acceptor for Honor Guarantor Holder Holder for Value Holder in Due Course Drawer A drawer is the person who draws a bill of exchange or a cheque upon the drawee for the payment of a certain amount of money Drawee A drawee is the person upon whom a bill of exchange or a cheque is drawn. Payee A payee is the person to whose order the drawee is to make payment or to whom the money is to be paid. Acceptor If and when the drawee agrees and assents to the order in writing addressed to him on a bill of exchange by signing his name on its face, indicating that he will pay on due date, the drawee will become an acceptor. Endorser When a payee or a holder signs his name on the back of an instrument for the purpose of transferring it to another person, he is called an endorser. Endorsee An endorsee is the person to whom an instrument is endorsed. Acceptor for Honor An acceptor for honor is the person who himself is not a party liable on a bill of exchange bu