[摘要]
Contents

I. Instruments

A. A brief introduction

1. What s instruments? ① a broad sense: a commercial document of title;

② a narrow sense: a specific, negotiable security...

Contents

I. Instruments

A. A brief introduction

1. What s instruments? ① a broad sense: a commercial document of title;

② a narrow sense: a specific, negotiable security for the purpose of paying money signed by the drawer on it which is unconditionally agreed to pay a sum in certain by the himself or by another. E.g. if agreed to pay by the maker, it is promissory note; if agreed to pay by another, it may be a draft or a cheque.

2. The role of instruments

(1) function of settlement; (2) function of credit guarantee;

(3) negotiability (4)function of paying off debts

3. Kinds of instruments: financial (cheque, notes, drafts) / commercial instruments (B/L, invoice, certificate of origin, packing list, etc.)

B. Main notes used in international settlement P1--8

1. Cheque P1—4

(1) Definition: an unconditional order in writing drawn on a bank by the drawer, requiring the bank to pay a sum certain in money to or to the order of a named person or to the bearer.

(2) Clearing cheques (Procedure of clearing a cheque shown as follows)

Drawer Drawing a cheque to the payee → Payee

∣ ∣

∣ ∣

Cheque AC Mandate Presenting the cheque

↓ ↓

Paying Bank ← Credit Advice Collecting Bank

Payment to Collecting Bank →

A. the collecting bank

Its responsibility of scrutinizing a cheque

i. Date: ① out of date ② post-dated ③ undated

ii. Payee

iii. Words & figures

iv. Signature

v. Crossings

vi. Endorsements:

① how to endorse a cheque

② kinds of endorsements

(i) Blank endorsements

(ii) Specific endorsements

(iii) Restrictive endorsements

B. the paying bank

Its obligations:

i. Legal obligations to honor dishonor a cheque

ii. Identifying the paying bank & time limits for dishonoring cheques

ii. Scrutinizing the cheque & the AC mandate

C. The payee

D. Crossings

Kinds of crossings: ① general; ② special(add name of a bank)

2. Draft P5—6

(1) Definition: an unconditional order in writing prepared or drawn by one person(drawer) and addressed to another(drawee), requiring or directing the drawee to pay a specific sum of money to or to the order of a third person (the payee), to the bearer, on demand or at a fixed or determinable future time. (Refer to ① P15:bill of exchange; ② P121:Def with a specimen)

(2) Kinds

A. Whether accompanying docs or not : Clean/Documentary drafts P5

B. Maturity: Sight (demand) drafts/tenor(time, usance) drafts P5

C. Source: Commercial/Bank drafts P6

(3) With or Without recourse P5

(4) Bank Drafts --- a cheque drawn by one bank on another

(5) Endorsements of a draft (Refer to P2—3 that of a cheque)

3. Promissory note P7

(1) Definition: an unconditional promise in writing made by one person to another signed by the maker, engaging 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 the bearer.

(2) Differences between a promissory note and a draft or a cheque