The connections and differences between bills of exchange, promissory notes and checks

(1) Concept analysis

The so-called "bill of exchange" refers to a bill issued by the drawee and entrusted to the payee. An instrument in which a specified amount is payable unconditionally to the payee or holder on sight or on a specified date. Bills of exchange are divided into bank bills and commercial bills, and commercial bills are further divided into bank acceptance bills and commercial acceptance bills according to their acceptors. According to the provisions of the Negotiable Instruments Law, the concept of a bill of exchange generally includes five aspects: 1. The bill of exchange is issued by the drawer; 2. It is entrusted to others to pay a certain amount; 3. The payment of the face amount should be unconditional ; 4. The payment of the amount should have a definite date; 5. The face amount is payment to the payee or bearer. There are three basic parties to a bill of exchange: 1. The drawer, that is, the person who issues the bill; 2. The payee, that is, the person who accepts the entrustment of the drawer and unconditionally pays the amount of the bill; 3. The payee, who holds the bill of exchange and pays the bill to Payer The person requesting payment. The basic parties to a remittance refer to the parties that already exist when the bill of exchange is issued. They are indispensable in the bill of exchange relationship.

The so-called promissory note refers to a note signed by the drawer who promises to unconditionally pay a determined amount to the payee or holder when meeting. The "cashier's check" mentioned here only refers to the bank's cashier's check. Promissory notes and bills of exchange have many similarities in basic content, that is, they are expressed in currency; the amount is determined; the face amount must be paid unconditionally; the payment period is also determined, etc. The most important thing about promissory notes and bills of exchange is that The difference is that the drawer of the promissory note is responsible for the payment. That is to say, there are only two basic parties to the promissory note. One is the drawer and the payee; the other is the payee.

The so-called check refers to a bill issued by the drawer, and a bank or other financial institution entrusted with the check deposit business unconditionally pays a determined amount to the payee or holder when the check is presented. Compared with checks and money orders, the difference between the two is mainly reflected in the following two aspects: 1. The drawer of the check must be a depositor of the bank, and there is sufficient deposit in the account when the check is issued. If a bad check is issued, it will be subject to administrative Penalty, serious criminal liability will be pursued, and the payee must be a legal financial institution such as a bank; 2. The payment method of a check is limited to payment on sight, and does not stipulate a regular payment date. Therefore, there are three basic parties to a check: 1. The drawer is the person who issues the bill and has a corresponding deposit in the bank where the account is opened; the payer is the legal financial institution such as a bank; the payee is the person who accepts payment.

(2) Similarities

(1) Have the same properties. ①They are all securities with entitlements. That is, the holder of the instrument proves its rights in the instrument to obtain property based on the rights recorded on the instrument. ②They are all format securities. The format of the bill (its form and recorded matters) are strictly regulated by law (i.e., the Negotiable Instrument Law). Failure to comply with the format will have a certain impact on the validity of the bill. ⑤They are all text securities. The content of the rights on the bill and all matters related to the bill are subject to the words recorded on the bill and will not be affected by matters other than the words on the bill. ④They are all negotiable and transferable securities. Claims under general debt covenants. If a transfer is to be made, the debtor's consent must be obtained. and as negotiable securities. It can be freely transferred and circulated through the simple procedure of simply delivering the instrument with or without endorsement. ⑤They are all non-cause securities. That is, the existence of rights on the instrument only depends on the instrument itself. The text confirms that the obligee's enjoyment of the bill rights is only necessary to hold the bill. As for the reason why the obligee obtains the bill, the reason why the bill rights arise does not matter. Whether these reasons exist or not, and whether they are valid or not, have no influence on the bill rights in principle. Because the current bills in our country are not bills in the full sense of the Bills Law. It's just the way bank settlement works. This causelessness is not absolute.

(2) has the same ticket function. ⑦Exchange function. With this function of the bill, the spatial barrier of cash payment between the two places is solved. ⑦Credit function. The use of bills can solve the time barrier of cash payment. The bill itself is not a commodity, it is a written payment voucher based on credit. ③ Payment function.

The use of bills can solve the hassle of cash payment procedures. Bills can be transferred multiple times through endorsement and become a circulation and payment tool in the market, reducing the use of cash. Moreover, due to the development of the bill exchange system, bills can be cleared centrally through the bill exchange center, simplifying settlement procedures, accelerating capital turnover, and improving the efficiency of the use of social funds:

(3) Differences

(1) A promissory note is an agreed (agreement to pay by yourself) security; a bill of exchange is an entrusted (entrusting another person to pay) security; a check is an entrusted payment security, but the trustee is limited to banks or other statutory financial institutions.

(2) There are differences in the areas of use of bills in our country. Cashier's checks are only used for commodity transactions, labor supply and other settlements within the same city; checks can be used within the same city or bill exchange areas; money orders can be used in the same city or in different places.

(3)The payment terms are different. The payment term of the promissory note is one month. Overdue payment will not be accepted by the bank. In my country, the bill must be accepted. Therefore, when the acceptance expires, the bill can be cashed in Magnum. When the payee's account is insufficient for payment on the maturity date of a commercial acceptance bill, the bank where the account is opened shall return the commercial acceptance bill to the payee or endorsee, and the bank shall handle it. The "Bank Settlement Measures" do not stipulate how to deal with bank acceptance bills that are paid on the maturity date, but the acceptance maturity date has passed and the bill holder does not require payment. Each bank in the industry has made some supplementary regulations on its own. If the Industrial and Commercial Bank of China stipulates that if the holder does not request payment one month after the acceptance period, the acceptance will become invalid. The check payment period is 5 days (the payment period for transfer checks in the endorsement transfer area is 10 days. It is calculated from the next day of issuance, and the expiration date is postponed in case of regular holidays).

(4) Bills of exchange and checks have three basic parties, namely the drawer, the payee, and the payee; while a promissory note only has the drawer (the payee and the drawer are the same person) and the payee. There are two basic parties: people.

(5) There must be a financial relationship between the drawer of the check and the payee before a check can be issued; there is no need to have a financial relationship between the drawer and the payee of a bill of exchange; the issuance of a promissory note The payer and the payer are the same person, and there is no so-called financial relationship.

(6) The principal debtor of a check and a promissory note is the drawer, while the principal debtor of a bill of exchange is the drawer before acceptance and the acceptor after acceptance.

(7) Usance bills need to be accepted, checks are generally at sight and do not need to be accepted, and promissory notes do not need to be accepted.

(8) The drawer of the bill of exchange guarantees the acceptance and payment. If there is another acceptor, the acceptor guarantees the payment; the drawer of the check guarantees the payment of the check; the drawer of the promissory note is responsible for payment.

(9) The holder of a check or promissory note only has a right of recourse against the drawer, while the holder of a bill of exchange has a right of recourse against the drawer, endorser and acceptor within the validity period of the instrument. There is recourse.

(10) There are copies of money orders, but there are no copies of promissory notes and checks.

(11) Checks and promissory notes do not have certificates of dishonor, but bills of exchange do.