国际结算part6.pptVIP

田霖 Definition of the Promissory Note: It 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 sum certain in money, to, or to the order of, a specified person or to bearer. PROMISSORY NOTES Promissory note is: a written promise to pay a determinate sum of money made between two parties. Maker: The issuer of a promissory note. Payee: The person to whom the note is to be paid.? Essentials to Promissory Note PROMISSORY NOTES Promissory Note PROMISSORY NOTES Difference Between a Promissory Note and a Bill of Exchange: 1. It is a payment promise , not a payment order. 2. There are only two parties to a promissory note, the maker and the payee. 3. The maker is primarily liable on the promissory note. 4. When issued, it has an original note only. 5. There is no acceptance requirement. Major forms of Promissory Note (1)According the maker, promissory note can be classified as Trade Promissory Note and Bank Promissory Note. Trade Promissory Note is issued by a business. Bank Promissory Note is issued by a bank. Trade promissory note is better than bank promissory note in credit. (2)According to the tenor, promissory note can be classified as sight promissory note and time promissory note. sight promissory note is payable at sight or on demand Time promissory note is payable at a fixed future date or a determinable future date. Major forms of Promissory Note (3) International Money Order(国际汇票） Also be called Overseas Money Order(MO) Overseas Money Order is issued by clearing banks in New York for payee’s convenience when he is traveling outside the U.S. Overseas Money Order is usually denominated in US dollars with the maximum amount not exceeding USD 2,500. Overseas Money Order can also be used to settle payments in international trade when the amount is small. (4) Traveler’s checkThese checks are frequently used by persons journeying in this country