International Settlement 王慧 金融学院
Main contents Part 1 Introduction Part 2 Negotiable Instruments: Bill of exchange; promissory note and cheque Part 3 Basic Methods of International Settlements: Remittance; collection; letter of credit; factoring; forfeiting and letter of guarantee. Part 4 Documents
References 《International Payments and Settlements》, 王益平主编，清华大学出版 社大学出版社，2009。 《国际结算》，苏宗祥主编，中国金融出版社， 2010年第 5版。 《新编国际结算与案例（英文版）》，朱文忠 编，对外经贸大学出版社，2010； 《UCP 600详解》，顾民著，对外经贸大学出 版社，2009； 《香港银行押汇实务》，于强著，浙江大学出 版社，2006；
《UCP 600制单兑用实务手册》, 顾民著，对 外经贸大学出版社，2008。 《UCP 600与ISBP 681述评及案例》，黄飞 雪，李志洁著，厦门大学出版社，2009。 《福费廷》，周红军著，中国海关出版社， 2008。 《国际保理：金融创新及法律实务》，黄斌 著，中国法律出版社，2006。 Periodicals: 《对外经贸实务》, 《国际经贸 探索》
references http: //www. icc. org http: //www. iccbooks. com http: //www. londonforfeiting. com http: //www. sinobankers. com http: //www. guomaoren. com (汇通天下国际结算网)
Chapter One Introduction to International Settlements 1. 1 Definition of international settlements 1. 2 The evolution of international settlement 1. 3 Correspondent banking relationship
1. 1 Definition of International Settlements International settlements are financial activities conducted among different countries in which payments are effected or funds are transferred from one country to another in order to settle accounts, debts, claims, etc. , emerged in the course of political, economic or cultural contracts among them.
In a word, international settlement refers to the activities of settling claims and debts among countries.
Financial activities : International Trade Settlement: Visible trade International non-trade Settlement Invisible trade Payments between governments Financial transaction
1. 2 The evolution of international settlement 1. From cash settlement to non-cash settlement（p 5） 2. From direct payment to indirect payment 3. From simple price terms to complex price terms （p 6） 4. From goods trading to documents trading 5. From paper documents to electronic documents
5. From paper documents to electronic documents 中信银行成功推出“端对端信用证项下电子交 单”业务(2012. 12) 中国银行上海市分行国际结算单证业务电子化 取得新突破(2013. 8) 苏州农行办理首笔BOLERO电子交单业务 (2013. 8) 中行广西分行首笔进口信用证项下电子交单业 务成功落地(2015. 8) 中国银行娄底分行成功实现bolero电子交单 (2015. 9)
T/T flowchart Funds Payee Remitter 6. Payment 7 debit advice 5. receipt remitting bank 4. Notification of T/T 2. receipt 1. T/T application 3. payment order sent by cable or SWIFT Paying bank
SWIFT: Society for Worldwide Inter-bank Financial Telecommunication SWIFT的成员资格 Member bank: Among the member countries of SWIFT, the head offices of those banks which obtain the licenses of doing foreign exchange business can be applied to be member banks of SWIFT Sub-member bank: 会员银行在海外的全资附属银行或持股份额达 90％ 以上的银行，可以申请为sub－member bank。 Participant: Non-bank financial institutes can applied to be participants. But participants are only allowed to use part of its messages
SWIFT银行识别代码 It is composed by 4 parts: bank code (4 letters); country code (2 letters); location code (2 letters or numbers representing the city); branch code (3 letters or numbers representing the city of the branch) 中国银行上海分行： BKCH CN BJ 300 中国农业银行江西分行 ABOC CN BJ 140 中国 商银行总行 ICBK CN BJ 交通银行总行 COMM CN SH 中国人民银行总行 PBOC CN BJ 中信实业银行总行 CIBK CN BJ
SWIFT电文格式分类 （message type） 根据银行的实际业务运作，swift标准格式部门和银行共同开发 10大类电文格式： 一 客户汇款和支票 （customer transfers and cheques） 二 银行头寸调拨 （financial institution transfers） 三 外汇买卖 （foreign exchange） 四 托收 （collections） 五 证券 （securities） 六 贵金属和辛迪加（precious metals and syndications） 七 跟单信用证和保函（documentary L/Cs and guarantees） 八 旅行支票（traveler's cheques） 九 银行帐务 十 SWIFT系统电报 每一类包含若干组(group)，每一组又包含若干格式（type） , 每个电报格式由三位数字组成。
Major payment systems CHIPS FEDWIRE CHAPS TARGET
3. 书面证明 日那亚卖方 米兰买方 书 面 证 明 货币兑换商 7. 定期结算 6. 书 面 证 明 2. 当 地 货 币 付 货 款 5. 1. 4. 货物 当 地 货 币 货币兑换商
1. 3 Correspondent Banking Relationship (1) Banking institutions Representative office Agency Foreign branch bank Subsidiary bank Affiliate bank
中国银行内罗毕代表处 Bank of China Limited Nairobi Representative Office Morning Side Office Park，Ngong. Road， P．O．Box 21357－00505，Nairobi， Kenya
1929年，中国银行在伦敦开设了伦敦经 理处（agency），成为中国银行乃至中 国现代银行业在海外最早设立的分支机构。 2007年 10月，英国金融服务局（FSA） 批准成立中国银行全资子公司 - 中国银 行（英国）有限公司 (subsidiary) 中国银行于2000年在巴西成立代表处。 2009年 3月13日正式成立中国银行（巴西） 有限公司
中国银行(2014年)海外机构（689家）所 在国： 港澳台 日本 韩国 蒙古 哈萨克斯坦 新加坡 泰国 越南 柬埔寨 马来西亚 印尼 俄罗斯 英国 法国 卢森堡 比利时 荷兰 波兰 德国 意大利 瑞典 匈牙利 赞比亚 南非 美国 加拿大 巴拿马 巴西 等37个国家和地区 http: //www. boc. cn/aboutboc/ab 6/
2. Correspondent arrangement 3. Control documents specimen of authorized signatures Telegraphic test keys schedule of terms and conditions SWIFT authentic key 4. Inter-bank accounts Nostro account （我帐、往帐） Vostro account （你帐、来帐）
Trade terms INCOTERMS 2010 Rules for any mode of transport: EXW FCA CPT CIP DAT DAP DDP Rules for sea and inland waterway transport: FAS FOB CFR CIF
FOB The seller To clear the goods for export. To delivers goods on board the named vessel at the named port. To bear the risks before the goods pass the rail of the vessel. The buyer To arrange for the shipment To bear the risks after the goods pass the rail of the vessel. To clear the goods for import.
CIF The seller To clear the goods for export. To arrange for the insurance and pay the premium. To arrange for the shipment and pay the freight to the destination. To bear the risks before the goods pass the rail of the vessel. The buyer To bear the risks after the goods pass the rail of the vessel. To make payment To clear the goods for import.
Chapter 2 Negotiable Instruments 2. 1 General introduction 2. 2 Bills of exchange 2. 3 Promissory notes 2. 4 Cheque
2. 1 General Introduction 2. 1. 1 What is a negotiable instrument? A negotiable instrument is an instrument the rights on which can be transferred easily from one person to another. In a broad sense, it refers to any commercial title ownership, such as bills of lading, insurance policies, warehouse warrants, checks, drafts, promissory notes, etc.
In a narrow sense, it is a written document that contains an unconditional promise by the drawer to pay the payee or an unconditional order by the drawer to the drawee to pay the payee a fixed amount of money at a definite time. Such as bills of exchange, promissory notes, and checks.
2. 1. 2 Characteristics of negotiable instruments 金钱债权性 设权性 Negotiability Requisite in form Non-causative nature Presentment Returnability Literally determined content (文义性)
2. 1. 3 Functions of negotiable instruments As a payment instrument; As a credit instrument; As a transferable instrument; As a means for offset Buyer/drawer 本票 Seller/payee
2. 1. 3 Functions of negotiable instruments As a means for offset bill C Co. /seller/B Co. /buyer order buyer/A Co. bill
2. 1. 4 Parties to a negotiable instrument Drawer: the person who draws a draft, a check or a promissory note. For the promissory note, the drawer is also called the maker. when drawing an instrument, the drawer engaged that , on due presentment, the instrument will be accepted and paid as specified.
Drawee The party upon whom a draft or a check is drawn Payee the party to whom the money is to be paid. Endorser Endorsee Acceptor Guarantor Holder
Holder for value Holder in due course / bona-fide holder 1. The bill is complete and regular on its face. 2. The holder takes the bill in good faith. 3. The holder takes the bill for value himself.
A bill Order C lost D picked up transferred it for value accepted gift B drawee F E
2. 1. 5 Negotiable instrument laws 1. Uniform Law for Bills of Exchange and Promissory Notes of Geneva of 1930 2. UK Bills of Exchange Act of 1882 3. China “the Negotiable Instrument Law of the People’s Republic of China”
2. 2 Bills of Exchange 2. 2. 1 What is a bill of exchange? In the UK Bill of Exchange Act of 1882, a bill of exchange is defined as “ 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 or to the order of a specified person or to bearer. ”
2. 2. 2 Essential items required in a bill of exchange Exchange for US$ 1, 000 Shanghai, March 5, 2016 At 30 days after sight pay to the order of ABC Bank the sum of one thousand US dollars only. To: BCD Bank New York, USA For China Import & Export Co. (Authorized Signature)
The word “Exchange” The UK Act has no specific requirement for it; the Uniform Law of Geneva stipulates clearly that “Bill of Exchange” must be inserted in the body of a bill. An unconditional payment order Name and address of the drawee It must be reasonably clear and definite.
Drawer’s signature Date and place of issue Name of the payee Restricted order “pay A Co. only. ” “Pay A Co. not transferable. ” “Pay A Co. ” plus “Not Transferable” on the face of the draft. Demonstrative order “Pay A Co. or order. ” “Pay to the order of A Co. ” “Pay A Co. ” Payable to bearer “Pay bearer”
Tenor payable on demand; payable at a fixed time after sight; payable at a fixed time after date; payable on a fixed future time. Place of payment A fixed amount of money
At sight pay to…… At two months after sight pay to…… At 30 days after date pay to…… At 1 st June 2016 pay to…… At 90 days after sight pay to …… 4. 15 4. 16 -4. 30 15 5. 1 -5. 31 31 6. 1 -6. 30 30 7. 1 -7. 14 14
Exchange for US$ 1, 000 Shanghai, March 5, 2016 At 30 days after sight pay to the order of ABC Bank the sum of one thousand US dollars only. To: BCD Bank New York, USA For China Import & Export Co. (Authorized Signature)
2. 2. 3 Acts of a bill of exchange u Issue To draw and sign a draft and deliver to the payee function u Endorsement The holder signs on the back of a draft and delivers it to the endorsee. function
five kinds of endorsements: Blank endorsement It shows the endorser’s signature only “For A Co. signed” Special endorsement “pay to the order of B, For A Co. (signed)”
(drawer) (payee) A B 1. pay to the order of C for B Signed 2. pay to the order of D for C signed 3. pay to the order of E for D signed C (holder) D E
Restrictive endorsement Pay to B only (or not transferable) For A Co. (signed) Conditional endorsement Pay to the order of B Co. on the delivery of goods For A Co. (signed)
Endorsement for collection For collection pay to the order of A Bank For B Bank Signed The endorser instructs the endorsee to collect the money for him. The endorser has the title of the draft.
u. Presentation for acceptance Presentation for payment The time for presentation If the holder fails to do as required, it will lose its right of recourse to its prior parties. The place for presentation
The Uniform law Within one year after issuing China’s law Acceptance Within a presentation reasonable for a time draft (only for “见票后定期 付款”) Within one year after issuing Within one month after issuing Payment presentation for a time draft On the due Within 10 date or within days after the 2 days after due date the due date The UK law Payment Within a presentation reasonable for a sight bill time On the due date Within one month after issuing
u. Acceptance The drawee signs on the face of the bill and delivers it to the holder Function General acceptance Accepted March 2, 2014 For Bank of China, Jiangxi branch signed
Qualified acceptance: (1)Conditional acceptance Accepted Payable provided the goods are up to standard For Bank of China, Jiangxi branch signed
(2) Partial acceptance Accepted Payable for 80% of amount of the draft only For Bank of China, Jiangxi branch signed (3) Local acceptance Accepted Payable at ABC Bank only For Bank of China, Jiangxi branch signed
u Payment is made by the drawee or acceptor to the holder, and made at or after the maturity in good faith and without notice that the holder’s title in defective. u. Dishonor dishonor by non-acceptance dishonor by non-payment .
u. Notice of dishonor In the event of dishonor, all parties who remain liable on the bill should be noted of the dishonor. The holder can give notice to his own transferor or to all his prior parties. (drawer) (payee) A F B (drawee) (holder) C D E
u Protest: A written statement drawn and signed by a Notary Public or other authorized person for the purpose of giving evidence that a bill of exchange has been presented for acceptance or for payment but dishonored. The Uniform Law required protest when facing dishonor; according to the UK law, for the inland draft, protest is not necessary, for a foreign bill, protest is necessary when dishonor.
u. Recourse condition amount
u. Guarantee It is performed by a third party called guarantor who engages that the bill will be paid if it is a sight bill or accepted and paid at maturity if it is a time bill.
The guarantor stands surely for a debtor such as drawer, endorser, or acceptor and assumes his indebtedness to the holder. The guarantor must specify for whose account the guarantee is given. In the absence of such an indication, for a sight bill, the guaranteed is the drawer, for a time bill, it is the acceptor.
Guarantee / Per aval For account of ____ Name of the guarantor signed u. Acceptance for honor It means that, when a bill has been protested for non-acceptance, any person not being a party already liable on the bill may, with the consent of the holder, accept the bill for the honor of any party liable to the bill.
Drawer A 5 B payee D C holder E 5 claim payment 1 present for acceptance but dishonored 3. Present for payment but dishonored drawee F 2 Accepts for honor of C 4. Make payment for honor acceptor for honor
Drawer A 5 B payee D C holder E 5 claim payment 1 present for acceptance but dishonored 3. Present for payment but dishonored drawee F 2 Accepts for honor of C 4. Make payment for honor acceptor for honor
u. Payment for honor 2. 2. 4 Classification of bills of exchange 1. According to the tenor Sight bill (sight draft or demand draft) usance bill (time draft or term draft) 2. According to the drawer Banker’s draft Trader’s bill
3. According to the acceptor Banker’s acceptance bill Trader’s acceptance bill 4. According to whether commercial documents are attached thereto Clean bill Documentary bill
Exercises 1. Make choice of whether the following bills are acceptable or not. Mark x before acceptable or unacceptable you chosen. (1) A bill shows : pay to ABC Co. providing the goods in compliance with contract. It is□ acceptable/ □unacceptable
2)A bill shows: pay to ABC Co. the sum of ten thousand US dollars on condition that shipment of goods has been made. It is□ acceptable/ □unacceptable (3) A bill shows: on demand pay to the order of ABC Co. the sum of twenty thousand US dollars drawn against shipment of 10 bales cotton piece goods from Tianjin to London. It is□ acceptable/ □unacceptable
(4)A bill shows: pay to ABC Co. out of proceeds of sale of woolen blankets the sum of one thousand US dollars. It is□ acceptable/ □unacceptable (5)A bill shows: pay from our No. 2 account to ABC Co. the sum of one thousand US dollars. It is□ acceptable/ □unacceptable
(6) A bill shows: pay to ABC Co. or order the sum of one thousand pounds and debit our No. 2 account. It is□ acceptable/ □unacceptable (7) A bill shows: after customs clearance pay to the order of ABC Co. the sum of ten thousand pounds. It is□ acceptable/ □unacceptable
(8) A bill shows: pay to Mary the sum of fifty pounds and give her a suit of clothes. It is□ acceptable/ □unacceptable (9) A bill shows : pay to the order of ABC Co. the sum of ten thousand pounds plus interest. It is□ acceptable/ □unacceptable plus interest calculated at 5% p. a. from the issuing date to the maturity. per annum
2. (1) a bill is payable at xx days after sight, what date is the day from which time of payment begins to run? (2) a bill is payable at xx days after date, what date is the day from which time of payment begins to run? (3) the maturity of one month after 31 Jan. is ( ) (4) the maturity of two months after 28 Feb. is ( )
3. According to the following information, draw bill of exchange. Date of issue: 24 Feb. 2014 Amount: USD 4, 242. 00 Tenor: at sight Drawer: Sherman Mortor Inc. , New York Drawee: the Chase Bank N. A. , New York Payee: Sherman Mortor Incorporation’s order.
4. According to the following flowchart, choose the right information. drawer payee the first the second transferee Negotiated to bill D P C E goods Bill as gift clothes A Drawee/acceptor (1) C is a □holder in due course/ □holder for value/ □holder (2) If C negotiates the bill to E, E is a□holder in due course/ □holder for value/ □holder (3) If the bill is unpaid by A, E □may/ □may not claim from C. E □may/ □may not claim from P. E □may/ □may not claim from D. (4) C □may/ □may not claim from P; C □may/ □may not claim from D. (5) P □ may / □ may not claim from D. (6) E’s title □is / □isn’t superior to P’s. E’s title □is / □isn’t superior to C’s. (7) C’s title □is/ □isn’t superior to P’s.
5. According to the following draft, do the exercises. Exchange for GBP 5000 London, 1 Apr. 2013 At 60 days after sight pay to the order of Bank of Australia the sum of five thousand pounds only To The Importing Co. , Melbourne For The Exporting Co. London signature
2. General crossing special crossing out of date post dated amount in figure and words blank endorse Special endorse restrict endorse Documentary bill sight bill Time draft acceptance bill Determinable future time clean draft Negotiable instrument discounting bank Merchant bank unconditional payment promise Joint liability 90 days after date
v. 1. The drawer is China National Crafts Import & Export Corp. , S. B. 2. The drawee is ABC Co. , London. 3. The payee is the Bank of China 4. A tenor draft. 5. A bill of exchange in two sets. 6. Shanghai.
VI Exchange for US$100, 000 Shanghai, Aug. 25 2013 At sight pay to the order of G & H Company the sum of US dollars one hundred thousand only. To: DEF Bank For ABC Co. New York Shanghai (signed)
7. Check for US$2, 300 （1） March 21, 2008 pay to （2）the order of Mrs. Warren the sum of U. S. dollars （4）two thousand three hundred only. To Hongkong and Shanghai Banking Corp. Ltd For Joe Williams Pacific Bank, city office signed
2. 3 promissory notes 2. 3. 1 what is a promissory note? According to the UK Bill of Exchange Act of 1882, a promissory note is defined as “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 bearer”.
2. 3. 2 Essential items of a promissory note Promissory Note For GBP 1, 000. 00 London, March 5 2013 At 90 days after date we promise to pay ABC Company or order the sum of one thousand pounds only. For Chartered Bank London Signed
The word “promissory note” clearly indicated; An unconditional promise to pay; Name of the payee; Signature of the maker; Place and date of issue; Tenor; A sum certain in money; Place of payment.
2. 3. 3 difference between a bill and a note Bill of exchange Promissory note An order to pay. A promise to pay Two basic parties three basic parties Never accepted a time draft is generally accepted.
Where payable after sight, a bill must be presented for acceptance to fix the maturity date of the bill Can be accepted for honor. Never accepted. A note payable after sight must be presented for visa of the maker. （签见） The visa date is used to fix the maturity date of the note. Never accepted for honor
2. 3. 4 Types of notes Trader’s note The maker is a trader, say, an individual or an enterprise. Banker’s note It is made by a bank, usually on demand. In china, promissory note only refers to sight banker’s notes
USD 100, 000. 00 Atlanta GA Oct. 6, 2012 at seventy days after date we promise to pay to the order of bearer the sum of one hundred thousand US dollars payable at the First National Bank of Chicago, Illinois or at Fulton National Bank, main office, Atlanta, Georgia Value received Not valid unless authenticated by the First National Bank of Chicago as issuing agent Due Dec. 15, 2012 for Haverty Furniture Co. signature Senior Vice President and Treasurer
Note for GBP 100 London, 21 Jan. , 2013 On demand we promise to pay bearer the sum of one hundred pounds For Bank of Europe London Signature
Central banker’s note Demand note issued by central bank payable to bearer and with specified amount of money. Negotiable Certificate of Deposit A CD means an instrument containing an acknowledgment by a bank that the bank has received a certain amount of money and promises to repay it. Various bonds
International money order Manufacturers hanover trust company New York, N. Y. 10015 Pay to the order of_____2004 Amount_______ pat at your buying rate for exchange on New Maximum of two thousand York United States Dollars five hundred (USD 2, 500. 00) _________ U. S. dollars not valid unless counter Manufacturers hanover signed above trust company New York, N. Y. 10015 (authorized signature)
PO Box 6 Eastcheap ABC Bank London EC 3 A London, _____ ABC bank certifies that the sum of _____pounds sterling has been deposited on terms that is payable to bearer on surrender of this certificates, through an authorized bank, at 6 Eastcheap London EC 3 A on the __fixed with interest at the rate of ___p. a. , calculated on a 365 day year basis, from the date hereof to the date of maturity only. per pro ABC Bank ________ Authorized signature
![CITY OF LIVERPOOL BILL [issued under the local government act 1999] 21 st Jan.](https://present5.com/presentation/77522198028042b73297e5c9afa6d078/image-99.jpg "CITY OF LIVERPOOL BILL [issued under the local government act 1999] 21 st Jan.")
CITY OF LIVERPOOL BILL [issued under the local government act 1999] 21 st Jan. , 2013 This city of Liverpool bill entitles____ or order to payment of two hundred and fifty thousand Pounds at the Bank of England out of the revenues of the city of Liverpool, on the 21 st April, 1999. without days of grace. J. Hhive City Treasurer.
Treasury Bill ￡ 100, 000 London 9 th Dec. 2012 This treasury bill entitles ____ or order to payment of one hundred thousand Pounds at the Bank of England out of the National Loans Fund on the 9 th Mar. 2013. Tawimil Lylish Secretary to the Treasury
短期融资券 概念：短期融资券是指具有法人资格的企业，依照规定的条件 和程序在银行间债券市场发行并约定在一定期限内还本付息的 有价证券。短期融资券是由企业发行的无担保短期本票。 首次推出： 1989年，人民银行下发《关于发行短期融资券有关 问题的通知》，肯定了各地为弥补短期流动资金贷款的不足而 发行短期融资券的做法 。 首次推出效果：短期融资券的出现改善了当时企业流动资金贷 款不足、但大量的未兑付短券使商业银行的信贷资金流失，这 些都表明制度的设计不够合理，未能完全适用于当时市场，使 运行结果与初衷违背。最终短期融资券退市。 重启： 2005年 5月24日，央行发布了《短期融资券管理办法》 以及《短期融资券承销规程》、《短期融资券信息披露规程》 允许符合条件的企业在银行间债券市场发行短期融资券。
短期融资券
上海复星医药（集团）股份有限公司于2014年 9月26日完 成 2014年度第一期短期融资券发行。本期融资券由北京银 行股份有限公司为主承销商、浙商银行股份有限公司为联 席主承销商，在全国银行间债券市场公开发行，发行总额 为人民币10亿元，期限为 365天，单位面值为 100元人民 币，票面利率为 5．15％。本期融资券募集资金将用于偿 还本公司的银行贷款和补充复星医药控股子公司的流动资 金。 宝钢新疆八一钢铁发行13亿元短期融资券，本期共发行13 亿元人民币短期融资券，期限为 365天。中国 商银行股 份有限公司担任此次发行主承销商，发行日 2014年 9月26 日。经中诚信国际信用评级有限公司综合评定，本期短期 融资券的信用等级为A-1级；发行人主体长期信用等级为 AA+级。
2. 4 cheques 2. 4. 1 what is a cheque? A check is an unconditional order in writing, signed by the person giving it, requiring the bank to whom it is addressed to pay on demand a sum certain in money to, or the order of a specified person or the bearer. It is a bill of exchange drawn on a banker payable on demand.
2. 4. 2 Essential items of a cheque Cheque $ 10, 000. 00 London, May 12, 2014 Pay to Tianjin Economic & Development Corp. or order the sum of Ten thousand US dollars only. To Bank of Europe London For British Trading Co. London signed
The word “cheque” clearly indicated; An unconditional payment order in writing; The name of the paying bank; The signature of the drawer; Place and date of issue; Address of the drawee bank; A sum certain in money; Name of the payee. Notice: Tenor, name of payee and the sum
2. 4. 3 Types of check 1. According to the payee cheque payable to bearer cheque payable to order 2. According to the drawer banker’s cheque personal cheque 3. According to whether crossed uncrossed cheque: crossed cheque
Crossed check: It means the check bearing two parallel lines on the face. It must be paid into a bank account and cannot be cashed over the counter. General crossing A general crossing on a check doesn’t specify name of the collecting bank, and means the check can be collect through any bank. Special crossing A special crossing usually contains the name of a bank and means that the fund can only be collected through the named bank.
General crossing: and Company Not negotiable A/C payee Not negotiable and A/C payee when not negotiable is inserted, it prohibits transfer, A/C payee, it can not negotiable.
Special crossing: Midland Bank Ltd. A/C payee Midland Bank Ltd. Not Negotiable A/C Payee
The maker of a crossing: The drawer, the payee, or the holder The function of the crossing Stop payment 如果支票遗失和毁坏，出票人可以止付支 票；如果出票人认为收款人不愿或不能执行 出票人为之签发支票的合同，出票人也可止 付支票。止付后，付款行责任解除，但不能 中止出票人的责任。 止付通知必须送达付款行才有效。若受票 行收到书面止付通知后付款，受票行承担损 失。日内瓦法禁止在提示有效期内止付支票。
Certified check It is a check that is certified by the drawee bank. Once it is certified, all other obligors on the check will be discharged of the liability of payment. Traveler's check It is a kind of promissory note, for the issuer is the person who pays the traveler's check. It is also a kind of check, for it can be deemed that the holder withdraws his deposits at the issuing bank or other financial institutions. But it can also be considered as a banker’s draft, the payee is the remitter himself.
American Express holder Bank of China
2. 4. 4 difference between a bill and a check Checks (1) the drawer is the customer of the drawee bank. The drawee must be the bank with which the drawer opens a checking account (2)The drawer is primarily liable on the check; in case of a certified check, the bank that has certified the check becomes the principal obligor and all other parties are discharged of liability. Bills of exchange (1)no specific requirement, the drawer can be a trader or a bank. the drawee can be a trader or a bank. (2) in the case of a sight bill, or a usance bill before acceptance, the drawer is the principle obligor; in the case of an accepted bill, the acceptor is the principal obligor.
(4) a check is payable on (4) a bill is payable on demand or at a determinable future time. (5) a payment instrument. (5)both a payment instrument and a credit (6) a check can be instrument. certified by the drawee (6) a bill can be accepted, bank guaranteed or accepted for honor. (7) a check can be (7) after acceptance, the cancelled before payment is irrevocable. payment.
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