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Negotiable instrument - Coggle Diagram

- - - - BEA 1882 - UK
      - UCC - US
      - LNIVN 2005 - VN ~ ULB
  - - - Maker = Drawer: Sign ~ Exporter
      - Drawee: Pay ~ Importer
      - Beneficiary: Receive ~ Drawer/ Another
      - Endorser: endorses on the reverse + transfers rights of payment
      - Endorsee: favor
      - Acceptor: drawee upon its signing for acceptance
      - Guarantor
  - - - To order
      - To bearer
    - - Order to pay
      - Cannot refuse, unless illegal issue
      - drawee dishonours => any prior endorser / drawer must pay
  - - - ... after sight
      - ... after date
      - after B/L date
      - On ...
  - - - ULB 1930 and LNIVN 2005: required
      - :BEA1882 and UCC1962/1995:not required
    - - Figures and words
      - Clear and straight
    - - ULB1930 and LNIVN 2005: required
      - BEA1882: not required
    - - Usance
      - If not mentioned => payable at sight
      - At sight/on demand/on presentation
    - - Collection: Drawee = buyer
      - L/C: Drawee = Bank
  - - - Banker's acceptance - preferred
        Bank stamps, signs and indicates the date
      - Trade acceptance
    - - Disputes on sight date => accepted date = sight date
      - Required for acceptance
      - Drawee can determine place to pay
    - - "accepted/ agreed" on the face of B/E + date + signed (ULB1930, LNIVN 2015)
      - a separate acceptance letter
    - - partial - allowed
      - payment in money
      - unconditional
      - After accepted => deliver B/E or send notification to beneficiary
  - - - Unconditional
      - Partial - not allowed
    - - Transfer by delivery
      - Transfer by endorsement (on the back + signed)
        
        To order
        
        Nominated/ restrictive
        
        Blank
        
        Without recourse (drawer cannot)
  - - - time left
      - risk
      - The discounting period: from the date after the discounting date to the due date of the B/E
      - Type: With / without Recourse
      - Amount received = Face value - Commission fee - Discount rate
        
        Discount rate: creditworthiness + risks
  - - - Guarantor
      - Principal = Obligor ~ Buyer
      - Creditor (obligee/ beneficiary) ~ seller
    - - Additional sheets
      - Write "guaranteed" + sum guaranteed + name and address of the guarantor and the principal of B/E + signed