Beruflich Dokumente
Kultur Dokumente
Coverage of Commercial Laws: 1. Negotiable Instruments 2. Warehouse receipts 3. Letters of Credit 4. Partnership 5. Corporation 6. Single proprietorship 7. Joint accounts 8. Insurance 9. Mortgage 10. Banking regulations
PROMISSORY NOTE a negotiable promissory note is 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 sm certain in money or to bearer. Where a note is drawn to the makers own order, it is not complete until indorsed by him. (Sec. 184, NIL).
DEBENTURE a promissory note or bond backed by the general credit of a corporation and usually not secured by a mortgage or lien on any specific property.
7. TRUST RECEIPT non-negotiable under the NIL as it is an evidence of goods and not of money
NEGOTIABLE INSTRUMENTS
Stale Check one which has not been presented for payment within a reasonable time after its issue; becomes valueless; 6 months
NEGOTIABLE INSTRUMENTS
CROSSED CHECK One which bears across its face two parallel lines drawn diagonally, usually on the upper left side a. General name of intermediary may be included b. Special payment must only be made to the entity/person indicated
Pay to the order of Mary Montes the sum of ONE THOUSAND PESOS (P1,000.00) only. Rudy Martin RCBC- Baguio
NEGOTIABLE INSTRUMENTS
Based on Sec. 1, are the following documents negotiable or non-negotiable? 1. Letter of Credit 2. Treasury Warrant 3. Postal Money Order 4. Bill of Lading 5. Certificate of Stock 6. Warehouse Receipt 7. Dock Warrant 8. Memorandum Check 9. Cashiers Check 10. Managers Check 11. Travelers Check 12. Certified Check 13. Crossed Check
BILLS OF EXCHANGE
BILL OF EXCHANGE 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 order or bearer. (Sec. 126 NIL) PARTIES: DRAWER the person drawing or making the instrument or the person giving the order DRAWEE the addressee of the order to pay or the person required to pay the instrument PAYEE the person to whom payment is to be made
BILLS OF EXCHANGE
B/E
Contains an unconditional order by one to another to pay the instrument There are 3 parties
P.N
Contains an unconditional promise made by one to another There are 2 parties
Must be present for acceptance to the Need not be presented for acceptance drawee If payable on demand, the bill must be presented for payment within a reasonable time from last negotiation If payable on demand, the note must be presented for payment within a reasonable time from its issue
BILL OF EXCHANGE
When is a PN like a B/E? After a note is indorsed by the payee, it becomes just like a bill. The maker corresponds to the acceptor, the indorser as the drawer and the indorsee as the payee. When is a B/E like a PN? Once accepted, a bill becomes similar to a PN. The acceptance is the promise to pay and the acceptor becomes the promissor/principal debtor/maker while the drawer becomes like the first indorser or surety of the acceptor.
BILL OF EXCHANGE
DRAFT- used synonymously with bill of exchange although it normally refers to a bill of exchange used in documentary exchange like letters of credit transactions.
BILL OF EXCHANGE
INLAND AND FOREIGN BILL an inland bill is a bill which is, or on its face purports to be, both drawn and payable within the Philippines. Any other bill is a foreign bill
BILL OF EXCHANGE
IMPORTANCE OF THE DISTINCTION BETWEEN INLAND AND FOREIGN BILL 1. To determine when protest will apply 2. To determine the law that will govern the validity, interpretation and effect of the bill
**For this purpose, the different states of the USA are deemed foreign to each other **A bill drawn in the Philippines and payable in California or drawn in New York and payable in Arizona are foreign bills as they are not both drawn and payable in the Philippines.
BILL OF EXCHANGE
TIME DRAFT draft that is payable at a fixed date.
BILL OF EXCHANGE
SIGHT OR DEMAND DRAFT draft that is payable when the holder presents it for payment.
BILL OF EXCHANGE
TRADE ACCEPTANCE bill that is used in contracts of sale where the seller as drawer orders the buyer (as drawee) to pay a sum certain to the same seller (payee).
BILL OF EXCHANGE
BANKERS ACCEPTANCE a time draft across the face of which the drawee has written the word accepted.
BILL OF EXCHANGE
CHECK a bill of exchange drawn on a bank payable on demand.
BILL OF EXCHANGE
CHECK v ORDINARY B/E CHECK a bill of exchange drawn on a bank payable on demand.It is usually drawn against previous deposit of funds for it is ordinarily intended for immediate payment. It is not usually required to be presented for acceptance but for payment. However, there is no prohibition from presenting it for acceptance. Sec 187 provides that Where a check is certified by a bank on which it is drawn, the certification is equivalent to an acceptance. Certification implies that the check is drawn upon sufficient funds in the hands of the drawee, that they have been set apart for its satisfaction, and that they shall be so applied whenever the check is presented for payment.
BILL OF EXCHANGE
Sec. 127. Bill not an assignment of funds in hands of drawee. A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for the payment thereof, and the drawee is not liable on the bill unless and until he accepts the same. Sec. 128. Bill addressed to more than one drawee. - A bill may be addressed to two or more drawees jointly, whether they are partners or not; but not to two or more drawees in the alternative or in succession. Ex. Pay to the order of A,B and C P10K. Payment to any one of them is valid.
BILL OF EXCHANGE
EXAMPLE FOR SEC 128 Ex. TO: X and Y Pay to the order of A and B P10K. SGD ***Payment by any one of them is valid and discharges the instrument. But the following is not allowed: Ex. TO: X or Y = alternative Pay to the order of A or B P10K. SGD Ex TO: X, and in his absence, B = successive Pay to A, B and/or C P10K. SGD ***Compare with Sec 8 (payees) and Sec 68 (joint indorsees=solidary)
BILL OF EXCHANGE
Sec. 129. Inland and foreign bills of exchange. - An inland bill of exchange is a bill which is, or on its face purports to be, both drawn and payable within the Philippines. Any other bill is a foreign bill. Unless the contrary appears on the face of the bill, the holder may treat it as an inland bill.
BILL OF EXCHANGE
Sec. 130. When bill may be treated as promissory note. - Where in a bill the drawer and drawee are the same person or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument at his option either as a bill of exchange or as a promissory note.
BILL OF EXCHANGE
Sec. 131. Referee in case of need*. - The drawer of a bill and any indorser may insert thereon the name of a person to whom the holder may resort in case of need; that is to say, in case the bill is dishonored by non-acceptance or non-payment. Such person is called a referee in case of need. It is in the option of the holder to resort to the referee in case of need or not as he may see fit. *umpire, arbiter, mediator, go-between
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2nd Part
3rd Part
REFERENCES
Abad, Antonio H Jr.(2006), Negotiable Instruments Law, Quezon City, Central Book Supply Inc Agpalo, Rube E. (2005), The Negotiable Instrument Law, Manila Rex De Leon, H.S. (2010), The Negotiable Instruments Law, Quezon City: REX Printing Company, Inc. Black's law dictionary (8th ed) (2007). St. Paul, MN. : West Pub. De Leon, Hector S. (2010). (2010 ed.).The Philippine negotiable instruments law and allied laws annotated Manila: Rex, Commercial laws of the Philippines. (2009). Manila: Rex. Salao, Ernesto C. Law Dictionary. (2009). Manila: Rex
IMPORTANT LINKS
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