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BILL OF EXCHANGE/DRAFTS - Coggle Diagram

- - - - Do not need to write the credit relationship - the causes
      - Specify the amount to be paid & the relative content
      - In case of dispute, the bill's owner must appeal by himself
      - Once separated from the contract and belongs to a 3rd person, a bill becomes independent business
    - - Payer has to pay fully with the requirements of the bill
      - Must not excuse against the drawer - cannot give any reasons to reject
    - - The bill can be transferred many times
  - - - Geneva 1930 - ULB 1930
      - UN Convention on International B/E and Promissory Notes
    - - BEA 1882 of Great Britain
      - UCC 1962 of the USA
    - - Law of negotiable instruments
  - - - Benefits
        
        Draw the bill to demand payment
        
        Be the 1st beneficiary
        
        Negotiate or mortgage the bill in the bank
        
        Transfer benefits to the other
        
        Have legal rights of other future benefits
      - Responsibilities
        
        Draw the bill
        
        The bill is rejected by the drawee: pay the sum
    - - Benefits
        
        Honor or dishonor
        
        Check the continuity and validity of endorsement line
        
        Keep or cancel the bill after payment
      - Responsibilities
        
        Make immediate payment for the bill presentation
        
        Accept payment
    - - Benefits
        
        Receive payment
        
        Transfer the benefit
        
        Negotiate or mortgage the bill in the bank
      - Responsibilities
        
        Present the bill on time, at correct payment address
        
        Inform timely for the payer in case of losing the bill
    - - Transfer their bill benefits to another by endorsement
    - - Receive payment when the bill is paid
        
        Drawer: doesn't have transference
        
        The final beneficiary: Endorsed bill
- - - - Not earlier than the date of issuing invoice & credit
      - In the valid time of the credit
  - - - Not earlier than the date of issuing invoice & credit
      - In the valid time of the credit
  - - - Presentation period
        
        ULB: 1 year
        
        VN: 90 days from the date of signing (Article 43)
        
        BEA: a reasonable time
    - - Fixed period after sight (most popular)
      - Fixed day in the future
      - Fixed day after sight
  - - - ULB: full name of the drawee
      - VN: full name & address of the drawee
    - - BEA: valid if it is indicated in a bill with reasonable certainly
      - ULB & VN: invalid
  - - - Stamp
        
        ULB & BEA: sign without a stamp
        
        VN: sign and stamp (Clause 18, article 4)
      - Drawer's address
        
        ULB & BEA: do not prescribe it specifically
        
        VN: Drawer's name & address must be clearly
- - - - Not require to accept the bill => For the purpose of circulation
      - Cases
        
        Specified on the bill
        
        The bill has payment period from the day of acceptance
        
        The bill is payable at a fixed time after presentation
        
        The place of payment # drawee's address
      - Time bills: Acceptance > Deadline
    - - Accept on the front of the bill
        
        Writing on the front bottom left corner: agreed or accepted, signs and dates
        
        Date of signing is wanting
        
        VN: invalid
        
        ULB: Invalid when the bill is payable at a certain time after sight or when it must be presented for acceptance
        
        Payable at a fixed period after sight: The date of acceptance = date of sight
      - Accept by a separate document
        
        Traditional document or electronic (MT799)
        
        Must be transferred to the beneficiary
    - - Unconditional
      - Partial payment is accepted
      - Modification into the tenor = refusal to accept
      - Time of acceptance
        
        Time bills
        
        Fixed limit of time
        
        ULB & VN: 1 year
        
        BEA: reasonable time
        
        Overdue bills
        
        ULB & VN: invalid
        
        BEA: may be accepted
        
        Sight bills
        
        ULB & BEA: not specified
        
        VN: 90 days from drawing date
        
        Time-limit for replying when the bill is presented
        
        ULB & BEA: not specified
        
        VN: 2 working days
  - - - Transfer the ownership of a B/E
      - Endorser will sign on the back of the bill and transfer it to the endorsee
    - - The endorser does not need to mention the reason
      - Does not need to inform the drawee
    - - Unconditional, otherwise invalid
      - Partial endorsement will be invalid
      - Modification into the tenor will be invalid
    - - Blank endorsement
        
        Does not designate the beneficiary/endorsee => payable to bearer => does not need to endorse for the next endorsement
        
        "pay to ..." or "pay to the order of any ..."
        
        Can change to order types by adding content
        
        Strength: Circulate easily
        
        Drawbacks: Risky if the bill is lost
      - Nominated or restrictive endorsement
        
        Designates the beneficiary
        
        Endorser writes "pay to ..." and signs
        
        Cannot re-endorse
      - "To order" endorsement
        
        Infers the beneficiary through endorsement procedure
        
        Endorser writes "pay to the order of ..." and signs
  - - - Obliged to pay the bill
      - Have the rights to abrogate which does not have enough contents required
      - Request guarantee to repay the amount of security money
    - - Right on the bill
        
        "Aval/Guarantee", the amount, the name, address and signature of the guarantor and the name of guarantee
      - A separate written document
    - - Unconditional
      - Write the name of guarantee
      - Acceptable for partial aval
      - Guarantor receives the rights
      - Irrevocable commitment
  - - - Non-acceptance: Limit of time fixed for presentment for acceptance
      - Non-payment: fixed day/period after date of sight => 1-2 business days following the payable day