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| Category | BANKING | Organ of Promulgation | The Standing Committee of the National People's Congress | Status of Effect | In Force |
| Date of Promulgation | 1995-05-10 | Effective Date | 1996-01-01 |
|
Negotiable Instruments Law of the People's Republic of China |
|---|
Section 1 Issue
Section 2 Endorsement
Section 3 Acceptance
Section 4 Guaranty
Section 5 Payment
Section 6 Right of Recourse
Chapter III Promissory Notes
Chapter IV Cheques
Chapter V The Applicable Laws Pertaining Negotiable Instruments in Cases
Involving Foreign Elements Article 1 This Law is formulated for the purpose of standardizing Article 2 This Law applies to all transactions concerning negotiable The term "negotiable instrument" as used in this Law denotes "bill Article 3 Activities concerning instruments shall abide by the laws Article 4 When creating an instrument, the issuing party shall endorse When exercising his rights with regard to an instrument, the bearer shall Other debtors endorsing the instrument shall bear liability for the The instrument right as referred to in this Law denotes the right of the Liability for negotiable instruments as referred to in this Law denotes Article 5 A party to an instrument may authorize an agent to endorse the A person without power of agency who endorses an instrument in the Article 6 The endorsement of an instrument by a person with no capacity Article 7 The endorsement of an instrument shall be by signature, seal or The endorsement of an instrument by a legal person or other organization The signature on an instrument must be the name of the party concerned. Article 8 The sum of money on an instrument shall be specified in both Article 9 Items specified in an instrument must conform to the provisions The sum, date and payee recorded in an instrument must not be altered. Other items in an instrument may be altered by the person who originally Article 10 The issue, acquisition and transfer of an instrument shall An instrument can only be acquired in consideration of payment, the Article 11 Acquisition of an instrument through taxation, inheritance or Prior parties refers to other debtors of an instrument who endorsed it Article 12 In cases where an instrument was acquired through fraudulence, In cases where the bearer through gross negligence acquires an instrument Article 13 A debtor of an instrument shall not oppose the bearer on the A debtor of an instrument may oppose a bearer who had a direct Opposition as referred to in this Law denotes the act whereby the debtor Article 14 Items specified in an instrument must be genuine and cannot Endorsements on an instrument which have been forged or altered shall Where other items in the instrument have been altered, persons who Article 15 Where an instrument has been lost, the person who has lost the The payer shall temporarily cancel payment when he receives notification The person losing the instrument shall in accordance with the law apply Article 16 The procedure by which the bearer of the instrument exercises Article 17 Rights to an instrument shall cease to be valid if not 1. The rights of the bearer of the instrument over the issuer and the 2. The rights of the bearer of a cheque over the issuer cease to be valid 3. The bearer's right of recourse over prior parties ceases to be valid 4. The bearer's right of re-recourse over prior parties ceases to be The date of issue and the date of maturity of an instrument shall be set Article 18 A bearer who has lost his rights on instrument because of the Section 1 Issue Article 19 A bill of exchange is an instrument signed by the issuer, Bills can be classified into bankers' bills and commercial bills. Article 20 Issue refers to the act of the issuer signing and issuing Article 21 The issuer of the bill must have an authentic relationship Bills without consideration shall not be signed or issued to defraud Article 22 A bill must specify the following items: 1. The word "bill"; 2. Authorization of unconditional payment; 3. A fixed sum; 4. The name of the payer; 5. The name of the payee; 6. The date of issue; 7. The endorsement of the issuer. A bill shall be null and void if any of the above-mentioned items are not Article 23 The date of payment, place of payment and place of issue, if A bill is payable on sight if the date of payment is not specified. The place of payment, if not specified on a bill, shall be the business The place of issue, if not specified on a bill, shall be the business Article 24 Items relating to the issue of a bill other than those Article 25 The date of payment may be specified in either one of the 1. Payable on sight; 2. Payable on a fixed date; 3. Payable during a fixed period after the date of issue; 4. Payable during a fixed period after the date of receipt. The date of payment as specified in the preceding paragraph shall be the Article 26 The issuer who signs and issues the bill shall bear In the event of non-acceptance or non-payment of the bill, the bearer Section 2 Endorsement Article 27 The bearer may transfer his rights to the bill to other When the issuer writes the term "non-transferable" on the bill, then The bearer must endorse and hand over the bill when exercising his rights Endorsement refers to the act of putting relevant items in writing and Article 28 The person endorsing the bill may use an allonge and attach it The first person to write on the allonge shall endorse the conjuncture Article 29 An endorsement shall be signed by the person making it and An undated endorsement shall be deemed to have been added to the bill Article 30 The name of the person endorsing the bill must be specified Article 31 There shall be an uninterrupted series of endorsement in a "An uninterrupted series of endorsement" as referred to in the preceding Article 32 When the bill is transferred by means of endorsement, the "The subsequent party" denotes other debtors of an instrument who endorse Article 33 No conditions can be attached to endorsements. Any conditions Any endorsements purporting to transfer a part of the amount payable, Article 34 When the endorser writes the term "non-transferable" on the Article 35 Where an endorsement contains the word "by procuration", the A bill may be pledged; when the bill is pledged, the endorsement shall Article 36 A bill cannot be transferred by means of endorsement when Article 37 After the bill has been endorsed and transferred, the endorser Section 3 Acceptance Article 38 Acceptance denotes the act whereby payer of the bill promises Article 39 Where a bill is payable on a fixed date or within a fixed Presenting the bill for acceptance denotes the act whereby the bearer Article 40 Where a bill is payable during a fixed period after Where a bill has not been presented for acceptance within the prescribed Where a bill is payable on sight, it does not need to be presented for Article 41 The payer shall accept or refuse the bill within three days On receiving of a bill presented for acceptance by the bearer, the payer Article 42 When accepting a bill, the payer shall write the word Where the date of acceptance is not specified on the bill, it shall be Article 43 When accepting a bill, the payer shall accept it Article 44 When the payer has accepted the bill, he shall bear the Section 4 Guaranty Article 45 The responsibility of guaranteeing the payment of a bill shall The guarantor shall be someone other than the debtor of the bill. Article 46 The guarantor must specify the following items on the bill 1. The word "guaranteed"; 2. The name and address of the guarantor; 3. The name of the person to whom the guaranty is given; 4. The date of guaranty; 5. The endorsement of the guarantor. Article 47 When the guarantor has not specified Item 3 of the preceding When the guarantor has not specified Item 4 of the preceding article on Article 48 No conditions can be attached to the guaranty; if there Article 49 The guarantor shall be responsible for guaranteeing the Article 50 Where a bill is guaranteed, the guarantor and the person to Article 51 In cases where there are two or more guarantors, they shall Article 52 After the guarantor has paid the debt as stipulated in the Section 5 Payment Article 53 The bearer shall present the bill for payment within the 1. A bill payable on sight should be presented to the payer within one 2. A bill payable on a fixed date, within a fixed period after the date In cases where the bearer has not presented the bill for payment within Presentation for payment made to the payer by an authorized bank or Article 54 The payer must pay the bill in full on the day when the Article 55 The bearer shall sign the bill and give it to the payer after Article 56 The bank authorized by the bearer to receive payment shall be The bank authorized by the payer to make payment shall be liable only Article 57 When paying a bill, the payer or his agent shall check the In cases where the payer or his agent make a payment out of malice or Article 58 In cases where the payer pays a bill before maturity which is Article 59 When the sum on a bill is expressed in a foreign currency, Where parties to a bill have stipulated the currency in which the bill is Article 60 Once the payer pays the bill in full, all debtors shall be Section 6 Right of Recourse Article 61 When the payment of a bill has been refused at its date of Before the maturity of a bill, the bearer may also exercise the right of 1. In cases when the payment of the bill has been refused; 2. In cases when the acceptor or the payer dies or flees; 3. In cases when the acceptor or the payer has been declared bankrupt Article 62 When exercising the right of recourse, the bearer shall be In cases when the bearer's presentation of the bill for acceptance or Article 63 In cases when the bearer is unable to obtain proof of refusal Article 64 In cases when the acceptor or the payer has been declared In cases when the acceptor or the payer has been ordered to cease business Article 65 When the bearer cannot provide proof of refusal to accept or Article 66 The bearer shall give written notice of the refusal to accept In cases when the bearer has failed to provide written notice in If the notice has been posted to the legal address or to an agreed address Article 67 The written notice, made out according to the first paragraph Article 68 The issuer, endorser, acceptor and guarantor of a bill are The bearer may exercise the right of recourse against any one or all of The bearer who has exercised the right of recourse against one or more of Article 69 In cases when the bearer is the issuer, he shall have no right Article 70 When exercising the right of recourse, the bearer may recover 1. The amount of the unpaid bill; 2. Interest on this sum at the rate stipulated by the People's Bank of 3. The expenses for the relevant proof of non-payment or non-acceptance When the person against whom the right of recourse is exercised has Article 71 When the person against whom the right of recourse is 1. The entire sum paid; 2. Interest on the said sum at the rate prescribed by the People's Bank 3. The expenses incurred by issuing notices. When the person exercising the right of re-recourse has been reimbursed, Article 72 When a person against whom the right of recourse is being Article 73 A promissory note is an instrument issued and signed by the A promissory note as referred to in this Law denotes a banker's promissory Article 74 The issuer of a note must possess reliable financial sources Article 75 The credentials of the note's issuer shall be examined and Article 76 A note must specify the following items: 1. The word "promissory note"; 2. A promise of unconditional payment; 3. A set sum; 4. The name of the payee; 5. The date of issue; 6. The endorsement of the issuer. A note shall be null and void if any one of the above-mentioned items Article 77 The place of payment and place of issue, if specified on the The place of payment, if not specified on the note, shall be the business The place of issue, if not specified on the note, shall be the business Article 78 The issuer of a note must bear liability for payment when the Article 79 The time limit for the payment of a note shall not exceed two Article 80 In cases when the bearer of a note fails to present the note Article 81 In addition to the provisions of this chapter, the provisions In addition to the provisions of this chapter, the provisions of Article 82 A cheque is an instrument issued and signed by the issuer Article 83 When opening an account in which cheques can be deposited with When opening an account in which cheques can be deposited with a bank and When opening an account in which cheques can be deposited with a bank, Article 84 Cheques may be payable in cash or payable into an account. If A form of cash cheque may be specially designed and made for cheques A form of crossed cheque may be specially designed and made for cheques Article 85 A cheque must specify the following items; 1. The word "cheque"; 2. Authorization of unconditional payment; 3. A certain sum; 4. The name of the payer; 5. The date of issue; 6. The signature of the issuer. A cheque shall be null and void if any one of the above mentioned items Article 86 The sum on the cheque may be added to with the authorization Article 87 The name of the payee, if not specified on the cheque, may be The place of payment, if not specified on the cheque, shall be the The place of issue, if not specified on the cheque, shall be the business The issuer may specify himself on the cheque as the payee. Article 88 The sum specified on a cheque by the issuer shall not exceed Where the sum specified in a cheque exceeds the issuer's balance in the Article 89 The issuer shall not sign and issue cheques upon which his Article 90 The issuer must bear the liability of guaranteeing payment Where the issuer's balance in the bank paying for the cheque is sufficient Article 91 A cheque is payable at sight and does not need to specify the Article 92 The bearer shall present the cheque for payment within ten After the stipulated time limit has expired, the payer need not pay the Article 93 The payer who has paid the sum of the cheque according to the Article 94 In addition to the provisions of this chapter, the provisions In addition to the provisions of this chapter, the provisions of Articles Article 95 The applicable laws pertaining negotiable instruments in cases Instruments in cases involving foreign elements as referred to in the Article 96 If any international treaty concluded or acceded to by the International practices may be applied to matters for which neither this Article 97 As regards the capacity for civil conduct of a debtor of an In the event that a debtor of an instrument shall be regarded as a person Article 98 Items required to be specified in the issue of bills or Items required to be specified in the issue of cheques shall be bound by Article 99 The endorsement, acceptance, payment and guaranty of an Article 100 The time limits within which the rights of recourse can be Article 101 The time limits within which the instrument should be Article 102 In cases when an instrument is lost, the procedure by which Article 103 Whosoever commits any of the following acts shall be 1. The forgery or alteration of an instrument; 2. The intentional use of a forged or altered instrument; 3. The signing and issue of a cheque which will bounce or the 4. The signing and issue of a bill or note where no reliable financial 5. The false specification of items on a bill or a note by the issuer at 6. The fraudulent use of instruments belonging to other people or the 7. The malicious collusion of the payer and the issuer or the payer and Article 104 Whoever commits any of the acts mentioned in the preceding Article 105 Any staff member of a financial institution who neglects If damage has been inflicted on parties to an instrument due to staff Article 106 If a payer intentionally delays paying an instrument which is If the payer's intentional delay in payment causes losses to the bearer, Article 107 Those who commit other acts violating the provisions of this Article 108 The calculation of all time limits stipulated by this Law When a time limit is prescribed in months, it expires on the corresponding Article 109 The form taken by bills, notes and cheques shall be Administrative measures for the form and printing of instruments and Article 110 The specific measures taken for implementing the Article 111 This Law shall come into force as of January 1, 1996.
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Chapter VI Legal Responsibility
Chapter VII Supplementary Provisions
Chapter I General Provisions
actions concerning negotiable instruments, protecting the legal rights of
parties using negotiable instruments, maintaining economic order in society
and promoting the development of the socialist market economy.
instruments within the territory of the People's Republic of China.
of exchange", "promissory note" and "cheque".
and administrative regulations and shall not harm public interests.
it according to statutory conditions and bear liability for the instrument
according to the items specified therein.
endorse the instrument and present it according to statutory procedures.
instrument according to the items specified therein.
bearer to claim the specified amount in payment from the debtor including the
right to claim for payment and the right of recourse.
the obligation of the debtor to pay the sum specified in the instrument to the
bearer.
instrument but must specify the principal-agent relationship on the instrument.
capacity of agent shall bear liability for the instrument; an agent who goes
beyond the limits of his power of agency shall undertake liability for the
part of the instrument overstepping the limits of his powers.
for civil conduct or with limited capacity for civil conduct is invalid, but
this does not influence the validity of other endorsements of the instrument.
both signature and seal.
which makes use of instruments shall be the official seal of the legal person
or organization accompanied by the endorsement of its legal representative or
its authorized agent.
Chinese characters and Arabic numerals; the two figures must be the same, if
the two figures are not the same, the instrument shall be null and void.
of this Law.
Instruments which have been altered are invalid.
wrote them, as proof alterations must be endorsed by the aforementioned.
be made in good faith and shall constitute a real transaction and reflect the
credit-debit relationship.
corresponding value of which must be agreed by the two parties to the
instrument.
legacy which may be realized in accordance with law without payment, shall not
be subject to being in consideration of payment. However, the bearers' rights
on the instrument shall not exceed those of prior parties.
prior to its endorsement by a specific signatory or bearer.
theft or coercion, or in cases where the bearer acquired an instrument through
malice while he knew well that the aforementioned circumstances existed, the
bearer shall not enjoy the instrument right.
which does not comply with the provisions of this Law, then the bearer shall
not enjoy the instrument right.
basis of a dispute between the issuer and the debtor himself or between the
any prior parties to the bearer and the debtor himself. However the exception
is in cases where the bearer acquired the instrument with the foreknowledge
that such opposition existed.
credit-debit relationship with him and did not perform the stipulated
obligation.
of an instrument refuses to carry out his obligations to the creditor in
accordance with the provisions of this Law.
be forged or altered. Those who forge or alter the endorsement or other items
in an instrument shall bear legal responsibility.
have no impact on the other genuine endorsements thereon.
endorsed the instrument before it was altered shall be liable for the items
originally specified in the instrument, persons who signed after it was
altered shall be liable for the items specified after the instrument was
altered. In cases where it cannot be determined whether the instrument was
endorsed before or after it was altered, it shall be treated as an instrument
which was endorsed before being altered.
instrument may promptly notify the payer of the instrument to suspend payment,
except in cases where the payer is not specified in the instrument or when the
payer or his agent cannot be identified.
of the loss of the instrument.
to the people's court for the publication of a public notice asserting his
claim or he can bring an action in the people's court within three days of
notifying the payee to suspend payment or after the loss of the instrument.
his rights or preserves his rights against the debtor shall be carried out
in the business premises of the party concerned during business hours or
at their place of residence if no business premises exist.
exercised within the following time limits:
acceptor of the instrument cease to be valid two years after the date of
maturity of the instrument. Bills or notes payable on sight become invalid
two years after the date of issue;
six months after the date of issue;
six months after the date of non-acceptance or non-payment;
valid three months after the date of settlement or the commencement of a
lawsuit.
in accordance with the law by the parties to the instrument.
expiration of his rights or because the items recorded in the instrument are
not comprehensive may still enjoy civil rights, and may request that the payer
or the acceptor refunds the amount equivalent to that part of the instrument
not yet paid.
Chapter II Bills of Exchange
authorizing the payer to unconditionally pay a certain sum of money to the
payee or the bearer when the bill is presented or at a specified time.
the instrument and delivering it to the payee.
with the payer authorizing payment and must possess reliable funds with which
to pay the sum in the bill.
money from banks or other parties of an instrument.
specified therein.
specified on the bill, shall be legible and unambiguous.
premises, domicile or habitual residence of the payer.
premises, domicile or habitual residence of the issuer.
stipulated by this Law may be specified on a bill, but such items shall have
no effect on the validity of the bill.
following forms:
date of maturity of the bill.
liability for its acceptance and payment.
shall be reimbursed the sum and expenses as stipulated in Articles 70 and 71
of this Law.
persons or authorize other persons to exercise some of his rights to the bill.
it cannot be transferred.
as stipulated in the first paragraph of this article.
endorsing the back of the bill or an allonge.
to the bill if there is not enough space in the bill for the items.
of the bill and the allonge.
the date of endorsement shall be specified.
before its date of maturity.
when the bill is endorsed so that the rights to the bill are transferred or
to authorize another person to exercise some of the rights to the bill.
bill which is transferred by means of endorsement. The bearer must prove his
rights to the bill by an uninterrupted series of endorsement; a person to
whom a bill is transferred by means other than endorsement or who acquires a
bill by other legal means shall provide evidence in accordance with the law
showing his rights to the bill.
paragraph denotes that, in the course of the transfer of an instrument, the
endorsement of the person endorsing the transfer of the bill shall be made by
the immediate prior endorsee to acquire the bill.
subsequent party shall be liable for the authenticity of the endorsement
made by the immediate prior party.
it after its endorsement by a specific party.
attached to endorsements shall have no effect on the bill.
or to transfer the bill to two or more people separately, shall be null and
void.
bill and his subsequent party reendorses and transfers it, the original
endorser shall not bear any responsibility for any guarantees made to the
subsequent party's endorsee.
endorsee shall be entitled to exercise mandated rights to the bill on the
endorser's behalf. However, the endorsee shall not transfer the rights to the
bill by means of re-endorsement.
contain the term "value in pledge". The endorsee may exercise the rights to
the bill when realizing the right of pledge according to law.
acceptance or payment has been refused or when the time limit for presentation
in order to receive payment has expired, if the bill has been endorsed and
transferred, the endorser shall bear liability for the bill.
shall be liable for guaranteeing the acceptance and payment of the bill held
by the subsequent party. In cases of non-acceptance or non-payment of the
bill, the endorser shall compensate the bearer with the sum and expenses as
stipulated in Articles 70 and 71 of this Law.
to pay the sum of money in the bill at its maturity.
period after the date of issue, the bearer shall present the bill to the
payer for acceptance before the bill's date of maturity.
presents the bill to the payer and demands a promise of payment from the
payer.
presentation, the bearer shall present the bill to the payer for acceptance
within one month of the date of issue.
period, the bearer shall lose the right of recourse against prior parties.
acceptance.
of receiving the bill as presented for acceptance.
shall make out a receipt to the bearer. The receipt shall be signed and the
date on which the bill was presented shall be written thereon.
"accepted" and the date of acceptance on the front of the bill and sign it;
after seeing a bill which is payable during a fixed period, the date of
payment shall be specified at the time of acceptance.
the last day of the period prescribed by the first paragraph of the preceding
article.
unconditionally; if conditions have been added, this is deemed to be a
refusal.
liability of paying it at maturity.
be borne by the guarantor.
itself or on an allonge:
article on the bill itself or on an allonge, in cases where the bill has
already been accepted, the person who accepted the bill is he to whom the
guaranty is given; in cases where the bill has not yet been accepted, the
guaranty is given to the issuer.
the bill itself or on an allonge, the date of guaranty shall be the date of
issue.
should be any conditions attached, these will not affect the liability of
guaranty on the bill.
bearers' rights to the bill when the bearer has acquired the bill
legitimately. This is with the exception of cases when the debt of the person
receiving the guaranty is invalid because of the absence of certain items
from the bill.
whom the guaranty is given shall undertake joint liability to the bearer. In
cases where the guaranteed bill has not been paid at its maturity, the bearer
is entitled to demand payment from the guarantor, who shall pay the bill in
full.
undertake joint liability.
bill, the guarantor may exercise his right of recourse as enjoyed by the
bearer against the person to whom the guaranty is given and his prior parties.
following time limits:
month of the date of issue;
of issue or within a fixed period after being seen shall be presented for
acceptance within 10 days of the date of maturity.
the prescribed period as stipulated in the preceding paragraph, the person
accepting the bill or the payer shall remain liable for the payment of the
bill after the bearer has explained the situation.
clearing system for instruments shall be deemed as presentation by the bearer.
bearer presents the bill for payment in accordance with the provisions of the
preceding article.
receiving payment. In cases where the bearer authorizes a bank to receive
payment on his behalf, the bill may be deemed as having been signed for when
the authorized bank has credited the collected sum to the bearer's account.
liable only for crediting the sum on the bill to the bearer's account
according to the items specified in the bill.
for paying the sum on the bill from the payer's account according to the
items specified in the bill.
continuity of the series of endorsement, as well as checking the legitimacy
of the identification of the person presenting the bill, or the validity of
that person's certificates.
with gross negligence, they alone shall bear liability.
payable on a fixed day or on sight within a fixed period, he alone shall bear
liability.
the sum payable shall be paid in Renminbi according to the market rate of
exchange on the day of payment.
to be paid, the latter agreement shall be followed.
discharged from liability.
maturity, the bearer may exercise the right of recourse against the endorsers,
the issuer and other debtors of the bill.
recourse under any of the following circumstances:
according to the law or has been ordered to cease business activities due to
their violations of the law.
able to provide proof that acceptance or payment was refused.
payment has been refused, the acceptor or the payer must provide proof of
their refusal or a statement noting their reasons for non-payment or
non-acceptance. Otherwise, the acceptor or the payer shall bear the civil
liabilities arising therefrom.
to accept or pay the bill because of the death or flight of the acceptor or
payer or other causes, the bearer may procure other relevant proof according
to the law.
legally bankrupt by the people's court, relevant judicial documents from the
people's court shall be valid as proof of refusal to accept or pay the bill.
activities because of his violations of the law, the punitive decision of the
relevant administrative authorities shall be valid as proof of refusal to
accept or pay the bill.
pay the bill or a statement noting reasons for non-payment or any other lawful
proof within the prescribed period, he shall lose the right of recourse
against his prior parties. However, the acceptor or the payer shall still
remain liable to the bearer.
or pay to his prior party within three days of receiving relevant
certification denoting non-acceptance or non-payment; the prior party shall
notify his prior party of the notice he has received within three days of
receiving the notice. The bearer may also provide written notice to all
debtors of the bill at the same time.
accordance with the time specifications noted in the preceding paragraph,
the bearer may still exercise his right of recourse. Any party who fails
to give notice within the prescribed period shall be liable to compensate
his prior parties or the issuer for the losses caused by his delayed notice,
but the sum of the damages shall not exceed the sum of the bill.
within the prescribed period, then the notice is deemed to have been issued.
of the preceding article, shall specify the main items written on the bill and
shall clarify the fact that the said bill has been returned.
jointly liable to the bearer.
the persons mentioned in the preceding paragraph without being required to
observe the order in which the debtors have become bound.
the debtors of the bill, may still exercise these rights against the other
debtors. When a person who is being pressed for payment compensates the debt,
they shall enjoy the same rights as the bearer.
of recourse against the bearer's prior parties. In cases when the bearer is
the endorser, he shall have no right of recourse against the endorser's
subsequent parties.
the following expenses from the person against whom he is exercising the
right of recourse:
China from the date of maturity of the bill or the date upon which it was
presented for payment to the date of payment;
and the expenses incurred by issuing notices.
settled the debt, the bearer shall hand over the bill and the relevant proof
of non-payment or non-acceptance, as well as a receipt detailing the expenses
and interest received.
exercised has settled the debt in accordance with the provisions of the
preceding article, he may exercise the right of re-recourse against the other
debtors and recover the following expenses;
of China from the day when the payment was made to the day of reimbursement;
he shall hand over the bill and the relevant proof of non-payment or
non-acceptance as well as a receipt detailing the expenses and interest
received.
exercised has settled the debt according to the stipulations of the two
preceding articles, he shall be discharged from any liabilities.
Chapter III Promissory Notes
issuer promising to unconditionally pay the payee or bearer a set sum of money
when the note is presented.
note.
to pay the sum of money in the note and to guarantee payment.
approved by the People's Bank of China, who shall also stipulate specific
administrative measures therefor.
is not specified therein.
note, shall be legible and unambiguous.
premises of the issuer.
premises of the issuer.
bearer presents the note.
months from the date of issue.
for payment within the prescribed period, he shall lose the right of recourse
against prior parties other than the issuer.
of Chapter II of this Law pertaining to bills apply to the endorsement,
guaranty and payment of notes and the exercise of the right of recourse.
Article 24 of this Law pertaining to bills apply to the act of issuing notes.
Chapter IV Cheques
authorizing any bank or any other financial institution whose scope of
business involves depositing cheques to unconditionally pay a certain sum of
money to the payee or to the bearer at sight.
a bank, the applicant must use his real name and must submit legitimate
certification to prove his identity.
asking for a cheque book, the applicant must enjoy financial credibility and
must deposit a certain amount of funds therein.
the applicant shall leave a specimen signature of his real name and a specimen
seal therein.
a cheque is payable only into an account, this shall be specified on the face
of the cheque.
payable in cash and a cash cheque can only be used for payment in cash.
payable into an account and a crossed cheque can not be used for payment in
cash but only for settlement into an account.
is not specified therein.
of the issuer if the said sum is incomplete. Cheques which are incomplete
cannot be used.
completed with the authorization of the issuer.
business premises of the payer.
premises, residence or the habitual residence of the issuer.
the issuer's balance in the bank paying for the cheque at the time of payment.
bank paying for the cheque at the time of payment, the cheque will bounce. It
is prohibited to issue cheques that will bounce.
signature is not the same as his specimen signature or specimen seal.
of the sum specified on the cheque to the bearer.
to pay the sum of the cheque, the issuer shall pay the full sum on that day.
date of payment. A specification of the date of payment shall be invalid.
days of the date of issue. The time limit within which cheques may be
presented for payment in places other than the place of issue shall be
stipulated by the People's Bank of China.
cheque; in cases where the payer has not paid, the issuer shall still bear
liability for the instrument to the bearer.
law shall no longer bear liability to the issuer as the authorized payer, nor
liability for payment to the bearer. However, the exception is in cases when
the payment is made by the payer through malice or with gross negligence.
of Chapter II of this Law pertaining to bills apply to the endorsement and
payment of cheques and the exercise of the right of recourse.
24 and 26 of this Law shall apply to the issuance of cheques.
Chapter V The Applicable Laws Pertaining Negotiable Instruments in Cases
Involving Foreign Elements
involving foreign elements shall be determined according to the provisions of
this chapter.
preceding paragraph denotes instruments for whom one or more act of the issue,
endorsement, acceptance, guaranty or payment takes place outside the People's
Republic of China, while the rest take place within the territory of the
People's Republic of China.
People's Republic of China contains provisions differing from those of this
Law, the provisions of the international treaty shall apply, unless the
provisions are ones on which the People's Republic of China has announced
reservations.
Law nor any international treaty concluded or acceded to by the People's
Republic of China has any provisions.
instrument, the law of his own country shall be applicable.
with no capacity for civil conduct or with limited capacity for civil conduct
according to the law of his own country, while he shall be regarded as a
person with full capacity for civil conduct according to the law of the place
where the action is being carried out, the latter law shall be applicable.
notes shall be bound by the law of the place of issue.
the law of the place of issue. However, parties to a cheque may reach an
agreement by which the law of the place of payment shall be applied.
instrument shall be bound by the law of the place where the said action is
being carried out.
exercised on an instrument shall be bound by the law of the place of issue of
that instrument.
presented, the way in which proof of refusal to accept or to pay is drawn up
and the time limits for drawing up the proof of refusal to accept or to pay
shall be bound by the law of the place of payment.
the person who has lost the instrument applies to preserve their rights to the
instrument shall be bound by the law of the place of payment.
Chapter VI Legal Responsibility
investigated for criminal responsibility in accordance with the law:
intentional signing and issue of a cheque whereon the signature or seal is
not the same as the specimen signature or seal in order to obtain property by
fraudulence;
sources exist in order to obtain funds by fraudulence;
the time of issue in order to obtain property by fraudulence;
intentional use of instruments which are overdue or have been cancelled in
order to obtain property by fraudulence;
the bearer to commit any of the preceding acts.
article, when it is of minor importance and does not constitute a crime,
shall be punished by the imposition of administrative penalties according to
the relevant provisions of state law.
his duties and accepts, pays or guarantees an instrument which does not
conform to the provisions of this Law, shall be punished; if this act causes
substantial losses and constitutes a crime, he shall be investigated according
to the law for criminal responsibility.
members of financial institutions behaving in the manner described in the
preceding paragraph, the said institution and the person directly responsible
shall bear liability for compensation according to the law.
payable on sight or an instrument which has reached maturity, the financial
administration department shall fine the payer and punish any personnel
directly responsible.
then the payer shall bear liability for compensation according to the law.
Law than those for which one shall bear liability for compensation according
to the provisions of this Law, and so cause losses to other persons, shall
bear civil liability according to the law.
Chapter VII Supplementary Provisions
shall be bound by the relevant provisions of the General Principles of Civil
Law on the calculation of time limits.
day of the month in which the instrument reaches maturity; if there is no such
day, the time limit expires on the last day of the month.
standardised.
relevant documents shall be stipulated by the People's Bank of China.
administration of instruments shall be formulated by the People's Bank of
China in accordance with this Law, which shall go into effect after being
submitted to and approved by the State Council.
URL: http://www.asianlii.org/cn/legis/cen/laws/nil274