What Is a Principal Protected Note?

The bill law in a broad sense refers to various legal norms related to the adjustment of bill relations, including special bill laws and regulations, as well as other bills in other laws and regulations. Generally speaking, the negotiable instrument law refers to the narrow negotiable instrument law, that is, the special negotiable instrument law specification. It specifies the type, form and content of the negotiable instrument, clarifies the rights and obligations between the negotiators of the negotiable instrument, and adjusts all kinds of necessities arising from the negotiable instrument. Legal norms of social relations. The bill law is the general term for the legal norms governing the relationship of bills.

Bill law

Chinese name: Bill law
Foreign name: Bill law
Field

(I) The negotiable instrument law regulates the negotiable instrument relationship

The relationship between the notes is due to the issue, transfer,

Modern bill law originated mainly in Europe

Promissory notes and money orders were originally developed in Italy and France as currency exchange tools in off-site trade

The check originated in the Netherlands and passed to Britain in the mid-17th century

The original function of checks was generated as a payment instrument

The socio-economic functions of bills are mainly as follows

A currency exchange instrument is a currency exchange instrument when it is used to transfer money or money between different locations.

(Adopted at the 13th meeting of the Standing Committee of the Eighth National People's Congress on May 10, 1995. Amendments to the Bills Act>

Chapter I General Provisions

First

This Law is enacted in order to regulate bill behavior, protect the lawful rights and interests of the parties in bill activities, maintain social and economic order, and promote the development of a socialist market economy.

Article 2

This Law applies to bill activities within the territory of the People's Republic of China.

The bills referred to in this law refer to bills of exchange, promissory notes, and checks.

Article 3

The negotiable instruments shall comply with laws and administrative regulations, and shall not harm public interests.

Article 4

In making a bill, the bill issuer shall sign the bill in accordance with the statutory conditions, and shall bear the liabilities of the bill in accordance with the recorded matters.

In exercising the rights of the bill holder, the holder shall sign and stamp the bill in accordance with legal procedures and present the bill.

If other debtors of the bills sign the bills, they shall bear the liabilities of the bills in accordance with the matters recorded in the bills.

The right to bills mentioned in this law refers to the right of the bearer to request payment of the amount of the bill from the debtor of the bill, including the right to request payment and recourse.

The term liability for notes mentioned in this Law refers to the obligation of the debtor of the notes to pay the amount of the notes to the holder.

The fifth

The parties to a negotiable instrument may entrust their agents to sign and seal the negotiable instrument and shall indicate their agency relationship on the negotiable instrument.

If there is no agency right and signs the bill in the name of an agent, the signatories shall bear the bill liability; if the agent exceeds the agency authority, he shall bear the bill responsibility for the part that exceeds the authority.

Article 6

If a person with no capacity for civil conduct or a person with limited capacity for civil conduct signs the bill, the signature will be invalid, but the effectiveness of other signatures will not be affected.

Article 7

The signature or seal on the bill shall be the signature, seal or signature.

The seal of a legal person or other entity using the bill shall be the seal of the legal person or the unit plus the seal of its legal representative or its authorized agent.

The signature on the bill shall be the real name of the party.

eighth

The amount of the bill is recorded in both Chinese capitals and numbers. The two must be consistent. If the two are inconsistent, the bill is invalid.

Article 9

The items recorded on the bill must conform to the provisions of this law.

The amount, date, and payee name of the note must not be changed, and the changed note is invalid.

For the other recorded items on the bill, the original recorder may change it, and the original recorder shall certify when it is changed.

Article 10

The issuance, acquisition and transfer of the bills shall follow the principle of good faith and have a true transaction relationship and debt and debt relations.

The acquisition of the bill must pay the consideration, that is, the corresponding consideration recognized by the parties to the bill.

Article 11

Those who can obtain the bills free of charge due to taxation, inheritance, and gifts are not subject to the restriction of consideration. However, the rights of the instrument enjoyed shall not be superior to the rights of its predecessor.

Forehand refers to the other debtor of the bill signed before the signer or holder of the bill.

Article 12

Those who obtain the bill by means of fraud, theft or duress, or knowing the forefront of the situation, who obtained the bill for malicious purposes, shall not enjoy the right to the bill.

If the holder obtains a bill that does not comply with the provisions of this law due to gross negligence, he shall not be entitled to the bill.

Article 13

The debtor of the negotiable instrument may not oppose the bearer on the basis of a defense between him and the drawer or the holder's former hands. However, unless the holder knows that there are reasons for the defense and obtains the bill.

The debtor of the negotiable instrument may defend against a holder who has a direct creditor-debt relationship with him who fails to perform the agreed obligations.

The defense referred to in this law refers to the behavior of the debtor of the bill refusing to perform its obligations to the creditor of the bill in accordance with the provisions of this law.

Article 14

The items recorded on the bills shall be true and shall not be forged or altered. Whoever forges or alters the signatures on the bills or other recorded matters shall bear legal liability.

Forged or altered signatures on the bills will not affect the effectiveness of other true signatures on the bills.

If other recorded matters on the bill are altered, the person who signed the seal before the alteration shall be responsible for the original recorded matters; the person who signed the seal after the alteration shall be responsible for the recorded matters after the alteration; Signing before or after the creation shall be deemed as signing before the alteration.

Article 15

If the bill is lost, the person who lost the bill can promptly notify the payer of the bill to report the loss and stop payment, except for bills that do not record the payer or cannot determine the payer and its agent payer.

The payer who has received the report of the loss and stop payment shall suspend payment.

The loser shall notify the people's court of public notice within three days after the notification of stop-loss payment, or after the loss of the bill, or file a lawsuit with the people's court.

Article 16

The holder's exercise of the bill's rights against the debtor of the bill, or the preservation of the bill's rights, shall be conducted at the business place and business hours of the parties to the bill. If the party to the bill has no place of business, it shall do so at its residence.

Article 17

The rights of the negotiable instruments shall expire within the following periods:

(1) The rights of the bearer to the drawer and acceptor of the bill shall be two years from the maturity date of the bill. Bills of exchange, cashier's orders payable upon sight, two years from the date of issue;

(2) The holder's rights to the check issuer shall be six months from the date of issue;

(3) The holder's right of recourse against the previous party shall be six months from the date of being refused acceptance or payment;

(4) The holder's right of recourse against the previous party shall be three months from the date of liquidation or the date of litigation.

The issue date and maturity date of the bill shall be determined by the parties to the bill in accordance with law.

Article 18

If the holder loses the rights of the bill due to the time limit of the rights of the bill or the lack of the items recorded in the bill, he still enjoys civil rights, and may request the drawer or acceptor to return its benefits equivalent to the amount of the unpaid bills.

Chapter II Money Order

Section 1 Ticketing

Article 19 A bill of exchange is issued by the drawer, and the entrusted payer unconditionally pays a fixed amount of the bill to the payee or holder at the sight of the bill or on a specified date.

Drafts are divided into bank drafts and commercial drafts.

Article 20 Ticket issuance refers to the act of issuing a note by a drawer and delivering it to a payee.

Article 21 The issuer of a bill of exchange must have a real entrusted payment relationship with the payer and a reliable source of funds to pay the amount of the bill of exchange.

Drafts without consideration shall not be issued to defraud the bank or other parties to the bill.

Article 22 A bill of exchange must record the following:

(1) the words "bill of exchange";

(2) Entrustment of unconditional payment;

(3) the determined amount;

(4) the name of the payer;

(5) the name of the payee;

(6) the date of ticket issuance;

(7) Signature of the drawer.

If one of the items specified in the preceding paragraph is not recorded on the draft, the draft is invalid.

Article 23 Where the date of payment, place of payment, place of issue, etc. are recorded on the bill of exchange, it shall be clear and unambiguous.

If the date of payment is not recorded on the bill of exchange, it is payable on sight.

If the place of payment is not recorded on the bill, the place of business, residence or habitual residence of the payer shall be the place of payment.

If the place where the bill is issued is not recorded on the bill, the place of business, residence or habitual residence of the issuer shall be the place where the bill is issued.

Article 24 A bill of exchange other than those prescribed in this Law may be recorded on the bill of exchange, but such recorded items shall not have the effect on the bill of exchange.

Article 25 The payment date may be recorded in one of the following forms:

(1) Pay upon sight;

(2) scheduled payment;

(3) regular payment after the ticket is issued;

(4) Regular payment after seeing the ticket.

The payment date specified in the preceding paragraph is the due date of the bill of exchange.

Article 26 The issuer shall bear the responsibility of guaranteeing acceptance and payment of the bill after it has been issued. When the drafter fails to accept or pay the bill, he shall pay the holder the amounts and fees specified in Articles 70 and 71 of this Law.

Endorsement

Article 27 The holder can transfer the right of the bill of exchange to others or grant certain bills of rights to others to exercise.

Where the drawer states "not transferable" on a bill of exchange, the bill of exchange is not transferable.

When the holder exercises the rights stipulated in the first paragraph, he shall endorse and deliver the bill of exchange.

Endorsement refers to the act of recording and signing relevant matters on the back of a note or on a sticky note.

Article 28 The bill voucher cannot meet the needs of the endorser's recorded items, and a sticky note may be attached to be attached to the bill voucher.

The first recorder on the sticky note shall sign and seal it at the joint of the bill of exchange and the sticky note.

Article 29 The endorsement shall be signed by the endorser and the date of endorsement shall be recorded.

If the endorsement does not record the date, it shall be deemed to have been endorsed before the due date of the draft.

Article 30 When a bill of exchange is endorsed or a certain bill of rights is granted to another person for exercise, the name of the endorsed person must be recorded.

Article 31 The endorsement of a bill of exchange transferred by endorsement shall be continuous. The holder shall prove his right of bill of exchange by endorsement; if he obtained the bill of exchange in other legal ways without endorsement, he shall prove the right according to law.

The term endorsement in succession mentioned in the preceding paragraph means that in the transfer of notes, the endorser of the transfer bill and the endorser of the transferee bill are successively connected in sequence.

Article 32. A draft that is transferred by endorsement shall be responsible for the authenticity of the direct endorsement.

Backhand refers to other debtors of the bill signed after the signer of the bill.

Article 33 An endorsement must not be accompanied by conditions. Where conditions are endorsed, the conditions attached shall not have the effect on the bill of exchange.

An endorsement that transfers part of the amount of the bill of exchange or an endorsement that transfers the amount of the bill of exchange to two or more persons is invalid.

Article 34 If the endorser records the word "not transferable" on the draft and transfers the endorsement later, the original endorser shall not bear the responsibility of guarantee to the subsequent endorsed party.

Article 35 If the endorsement records the words "Entrusted Receipt", the endorsed person has the right to exercise the entrusted bill of exchange right on behalf of the endorser. However, the endorsed person may no longer transfer the right of draft by endorsement.

Drafts can be pledged; when pledged, the words "pledge" should be recorded in an endorsement. When the endorsed person realizes his pledge right according to law, he can exercise the right of draft.

Article 36 A draft shall not be endorsed for transfer if it is refused acceptance, payment is refused or the payment prompt period is exceeded; the endorser shall bear the responsibility for the draft if the transfer is endorsed.

Article 37 After an endorser transfers a bill of exchange by endorsement, it assumes the responsibility of guaranteeing acceptance and payment of the bills held by subsequent parties. When the endorser fails to accept or pay the bill, he shall pay the holder the amounts and fees specified in Articles 70 and 71 of this Law.

Section III Acceptance

Article 38 Acceptance refers to the act of the bill payer committing to pay the amount of the bill on the due date of the bill.

Article 39 The holder of a bill of exchange that pays on a scheduled date or on a regular basis after it has been issued shall present the acceptance to the payer before the due date of the bill.

Prompt acceptance refers to the act of the holder presenting the bill of exchange to the payer and asking the payer to promise to pay.

Article 40 The holder of a bill of exchange that pays regularly after seeing the bill shall present the acceptance to the payer within one month from the date of issue.

If the bill of exchange is not presented for acceptance within the prescribed time limit, the holder shall lose the right of recourse against his predecessor.

Drafts payable at sight do not require acceptance.

Article 41 The payer shall accept or refuse acceptance of a bill of exchange to which it is presented for acceptance within three days from the date of receipt of the bill of exchange for which acceptance is presented.

When the payer receives a bill of exchange that the bearer prompts acceptance, he shall issue a receipt for the receipt of the bill to the holder. The receipt should indicate the date of acceptance of the bill of exchange and sign it.

Article 42 Where a payer accepts a bill of exchange, it shall record the words "Acceptance" and the date of acceptance on the front of the bill of exchange, and sign and seal it; a bill of exchange paid regularly after seeing the bill shall record the date of payment when it is accepted.

If the acceptance date is not recorded on the draft, the acceptance date shall be the last day of the period specified in the first paragraph of the previous article.

Article 43 A payer may not accept a draft with conditions attached; if the acceptance is conditional, it shall be deemed to be rejected.

Article 44 After accepting a bill of exchange, the payer shall bear the responsibility for payment due.

Section 4 Guarantee

Article 45 The debt of a bill of exchange may be borne by the guarantor.

The guarantor is assumed by someone other than the debtor of the bill of exchange.

Article 46 The guarantor must record the following items on the bill of exchange or sticky note:

(1) the words "guarantee";

(2) Name and domicile of the guarantor;

(3) the name of the guaranteed person;

(4) Guarantee date;

(5) Signature of the guarantor.

Article 47 If the guarantor does not record item (3) of the preceding article on the draft or the sticky note, the accepted draft shall be the guaranteed party; the unaccepted draft shall be the guaranteed party.

If the guarantor does not record item (4) of the preceding article on the bill of exchange or sticky note, the date of issue is the date of guarantee.

Article 48 A guarantee may not be accompanied by conditions; if conditions are attached, it shall not affect the guarantee responsibility for the bill of exchange.

Article 49 The guarantor bears the guaranty responsibility for the rights of the bill holder who legally obtained the bill. However, the debt of the guaranteed person is invalid due to the lack of recorded items in the draft.

Article 50 For a guaranteed draft, the guarantor shall bear joint and several liabilities with the holder for the holder. If the bill cannot be paid after the due date, the holder has the right to request payment from the guarantor, and the guarantor shall pay in full.

Article 51 Where there are two or more guarantors, the guarantors shall bear joint and several liabilities.

Article 52 After the guarantor has settled the bill of exchange debts, the guarantor may exercise the holder's right of recourse against the guarantor and his predecessors.

Section 5 Payment

Article 53 The holder shall prompt the payment within the following time limit:

(1) A bill of exchange payable upon sight of the bill, which shall be presented to the payer within one month from the date of issue;

(2) Drafts that are paid on a scheduled date, on a regular basis after the ticket is issued, or on a regular basis after the invoice is presented, shall be presented to the acceptor for payment within ten days from the maturity date.

If the holder fails to prompt payment within the time limit specified in the preceding paragraph, the acceptor or payer shall continue to bear the payment responsibility to the holder after making the explanation.

Where the payment is presented to the payer through the entrusted beneficiary bank or through the clearing system, the payment shall be deemed to have been presented by the holder.

Article 54 Where the holder presents payment in accordance with the provisions of the preceding article, the payer must pay in full on the day.

Article 55 When a bearer obtains payment, he shall sign the bill of exchange and hand the bill to the payer. Where the holder entrusts the bank to collect money, the entrusted bank will transfer the amount of the draft collected on its behalf to the holder's account, which shall be deemed as the receipt.

Article 56 The responsibility of the beneficiary bank entrusted by the holder is limited to transferring the amount of the bill to the holder's account in accordance with the items recorded on the bill.

The liability of the paying bank entrusted by the payer is limited to paying the amount of the draft from the payer's account in accordance with the matters recorded on the bill.

Article 57 When paying, the payer and its agent payer shall review the continuity of the endorsement of the bill of exchange, and review the legal identity certificate or valid certificate that prompts the payer.

The payer and his agent's payer shall bear their own responsibility if they have paid maliciously or with gross negligence.

Article 58 For payable bills that are scheduled for payment, regular payment after the ticket is issued, or regular payment after the sight of the bill, if the payer pays before the due date, the payer shall bear the responsibilities arising therefrom.

Article 59 If the amount of the draft is foreign currency, it shall be paid in Renminbi at the market exchange rate on the date of payment.

If the parties to a bill of exchange have otherwise agreed on the type of currency to be paid by the bill, such agreement shall prevail.

Article 60 After the payer has paid in full in accordance with the law, the liabilities of all debtors of the bill of exchange are discharged.

Right of recourse

Article 61 If a bill of exchange is refused to be paid upon maturity, the holder may exercise the right of recourse against the endorser, drawer, and other debtors of the bill.

Before the expiration date of the draft, the holder can also exercise the right of recourse in any of the following circumstances:

(1) The bill of exchange has been rejected;

(2) The acceptor or payer dies or escapes;

(3) The acceptor or the payer is declared bankrupt according to law or ordered to terminate business activities due to violation of law.

Article 62 When exercising the right of recourse, the holder shall provide relevant proof of refusal of acceptance or payment.

If the bearer prompts acceptance or the payment is rejected, the acceptor or payer must issue a certificate of rejection or a reason for refund. Failure to issue a certificate of refusal or refund reason shall bear civil liability arising therefrom.

Article 63 If the bearer is unable to obtain a certificate of rejection due to the death or escape of the acceptor or payer or other reasons, he may obtain other relevant certificates in accordance with law.

Article 64 If the acceptor or payer has been declared bankrupt by the people's court according to law, the relevant judicial documents of the people's court have the effect of rejecting the certificate.

If the acceptor or the payer is ordered to terminate business activities due to an illegal act, the punishment decision of the relevant administrative department has the effect of rejecting the certificate.

Article 65 If the bearer fails to produce proof of refusal, reason for refund or fails to provide other legal proofs within the prescribed time limit, he shall lose the right of recourse against his predecessor. However, the acceptor or payer should still be liable to the bearer.

Article 66 The holder shall notify the predecessor of the refusal in writing within three days from the date of receipt of the relevant proof of refusal of acceptance or payment; He will be notified in writing within the day. The holder may also give written notice to each debtor of the bill of exchange at the same time.

If the deadline is not notified, the holder can still exercise the right of recourse. If a loss is caused to the predecessor or the drawer due to the notice of delay, the party who has not notified the bill within the prescribed period shall be liable for the loss, but the amount of compensation shall be limited to the amount of the bill of exchange.

If the notice is mailed to the legal address or the agreed address within the prescribed time limit, the notice shall be deemed to have been given.

Article 67 The written notice made in accordance with the first paragraph of the preceding article shall clearly record the main recorded matters of the bill of exchange and indicate that the bill of exchange has been refunded.

Article 68 The issuer, endorser, acceptor and guarantor of a bill of exchange shall bear joint and several liabilities to the holder.

The holder may exercise the right of recourse against any one, several or all of them, not in the order of the debtors of the bill of exchange.

If the bearer has recoursed against one or more of the debtors of the bill of exchange, the right of recourse may still be exercised against the other debtors of the bill of exchange. After being repaid, the person subject to recourse enjoys the same rights as the holder.

Article 69 Where the bearer is the drawer, he has no recourse against his former hands. If the bearer is the endorser, he has no recourse against him.

Article 70 In exercising the right of recourse, the holder may request the person being recourse to pay the following amounts and fees:

(1) the amount of the bill of exchange refused to be paid;

(2) Interest calculated on the amount of the bill of exchange from the maturity date or the date of prompt payment to the settlement date at the interest rate stipulated by the People's Bank of China;

(3) The cost of obtaining relevant refusal certificates and issuing notices.

When the person subject to recourse pays off his debts, the holder shall submit the bill of exchange and relevant proof of rejection, and issue a receipt for the interest and expenses received.

Article 71 After being repaid in accordance with the provisions of the preceding article, the recourse party may exercise the right of recourse against other bills of debtors and request the other bills of debtors to pay the following amounts and fees:

(1) the total amount that has been settled;

(2) Interest calculated from the date of repayment to the date of recourse for repayment, according to the interest rate stipulated by the People's Bank of China;

(3) Fees for issuing notices.

When the person subject to recourse who has exercised the right of recourse has been settled, he shall submit the bill of exchange and relevant proof of rejection, and issue a receipt for the interest and expenses received.

Article 72 After the person under recourse pays off his debts in accordance with the provisions of the preceding two articles, his liability is discharged.

Chapter III Promissory Note

Article 73 The promissory note is issued by the drawer and promises to pay the confirmed amount to the payee or the holder unconditionally when he sees the ticket.

Cashier's check referred to in this law refers to cashier's check.

Article 74 The issuer of the promissory note must have a reliable source of funds to pay the promissory note amount and guarantee payment.

Article 75 The promissory note must record the following:

(1) the words "promissory note";

(2) the promise of unconditional payment;

(3) the determined amount;

(4) the name of the payee;

(5) the date of ticket issuance;

(6) Signature of the drawer.

If one of the items specified in the preceding paragraph is not listed in this promissory note, this promissory note is invalid.

Article 76 Where matters such as the place of payment, place of issue, etc. are stated on the promissory note, it shall be clear and unambiguous.

If the place of payment is not listed on this invoice, the business place of the drawer is the place of payment.

If the place where the ticket is issued is not recorded on this ticket, the business place of the issuer is the place where the ticket is issued.

Article 77 The drawer of a promissory note must bear the responsibility for payment when the bearer prompts to see the ticket.

Article 78 The promissory note shall not exceed two months from the date of issue.

Article 79 If the holder of a promissory note fails to present the ticket within the prescribed time limit, he shall lose the right of recourse against a former player other than the drawer.

Article 80 Except for the provisions of this chapter, the provisions on drafts in Chapter 2 of this law shall apply to the endorsement, guarantee, payment and recourse of this draft.

In addition to the provisions of this chapter, the promissory notes are subject to the provisions of Article 24 of this Law on drafts.

Chapter 4 Checks

Article 81 Cheques are issued by the drawer, and the bank or other financial institution entrusted to handle the check deposit business unconditionally pays the confirmed amount to the payee or the holder's bill when they see the ticket.

Article 82 To open a checking deposit account, the applicant must use his or her real name and submit legal certificates to prove his identity.

To open a check deposit account and receive a check, there should be reliable credit and certain funds should be deposited.

To open a checking deposit account, the applicant should reserve the signature and seal of his real name.

Article 83 A check can be drawn in cash or transferred. When used for transfer, the check should be indicated on the front of the check.

Where cheques are specifically used to withdraw cash, cash cheques can be made separately. Cash cheques can only be used to withdraw cash.

If the cheque is specifically used for transfer, a transfer check can be made separately. The transfer check can only be used for transfer, and no cash can be drawn.

Article 84 A check must record the following:

(1) the words "check";

(2) Entrustment of unconditional payment;

(3) the determined amount;

(4) the name of the payer;

(5) the date of ticket issuance;

(6) Signature of the drawer.

If one of the items specified in the preceding paragraph is not listed on the check, the check is invalid.

Article 85 The amount on the cheque may be supplemented by the issuer's authorization. Cheques that have not been pasted may not be used.

Article 86 If the name of the payee is not recorded on the check, it may be supplemented with the authorization of the drawer.

If the place of payment is not listed on the check, the place of business of the payer is the place of payment.

If the place where the ticket is issued is not listed on the check, the place of business, residence or habitual residence of the issuer is the place where the ticket is issued.

The drawer can record himself as the payee on the check.

Article 87 The amount of a check issued by the drawer of a check shall not exceed the amount of the deposit actually made with the payer at the time of payment.

If the amount of the check issued by the drawer exceeds the amount of the deposit actually made by the payer at the time of payment, the check is a short check. It is forbidden to issue short checks.

Article 88 The issuer of a check may not issue a check that does not conform to the signature or seal of its original name.

Article 89 The drawer must bear the responsibility of guaranteeing payment to the holder in accordance with the amount of the check issued.

When the drawer's deposit with the payer is sufficient to pay the check amount, the payer should pay in full on that day.

Article 90 Cheques are limited to pay upon sight, and the date of payment may not be recorded separately. If the payment date is separately stated, the record is invalid.

Article 91 The holder of a cheque shall present payment within ten days from the date of issue; for cheques used in other places, the time limit for presenting payment shall be separately prescribed by the People's Bank of China.

If the payment deadline is exceeded, the payer may refuse to pay; if the payer fails to pay, the drawer shall still bear the liability of the bill to the holder.

Article 92 If the payer pays the check amount in accordance with law, he shall no longer bear the responsibility of entrusted payment to the drawer, and shall no longer bear the responsibility of payment to the holder. However, except for those who pay by malicious or gross negligence.

Article 93 In addition to the provisions of this chapter, the endorsement of cheques, the act of payment, and the exercise of the right of recourse apply to the provisions of Chapter 2 of this Law on drafts.

In addition to the provisions of this chapter, the provisions on drafts of Articles 24 and 26 of this Law apply to the act of issuing checks.

Chapter V Application of Law to Foreign-Related Instruments

Article 94 The law of foreign-related instruments shall be determined in accordance with the provisions of this chapter.

The foreign-related bills mentioned in the preceding paragraph refer to bills that occur in the territory of the People's Republic of China or outside the territory of the People's Republic of China in the acts of endorsement, endorsement, acceptance, guarantee, and payment.

Article 95 If the international treaties concluded or acceded to by the People's Republic of China have different provisions from this Law, the provisions of the international treaties shall apply. However, the People's Republic of China declares exceptions to the clause.

Where there is no provision in this Law and the international treaties concluded or acceded to by the People's Republic of China, international practice may apply.

Article 96 The civil capacity of a debtor to a negotiable instrument shall be governed by its domestic law.

The civil capacity of the debtor of the instrument is non-civil act in accordance with its domestic law

Where the capacity is full civil capacity in accordance with the law of the place of conduct in order to limit civil capacity, the law of the place of conduct shall apply.

Article 97 The matters recorded at the time of draft of a draft or cashier order shall be governed by the law of the place where the bill is issued.

The items recorded when a cheque is issued shall be subject to the law of the place where the cheque is issued, and the law of the place of payment may also be applied upon agreement between the parties.

Article 98 The act of endorsement, acceptance, payment and guarantee of a bill shall be governed by the law of the place of conduct.

Article 99 The time limit for exercising the right to recourse in bills shall be governed by the law of the place where the bills are issued.

Article 100 The time limit for presentation of bills, the manner in which the certificate of refusal is issued, and the time limit for issuing the certificate of refusal shall apply to the law of the place of payment.

Article 101 When a bill is lost, the procedure of the claimant's request to preserve the right of the bill shall be governed by the law of the place of payment.

Chapter VI Legal Liability

Article 102 Anyone who commits one of the following fraudulent acts on bills shall be investigated for criminal responsibility according to law:

(1) Forging or altering bills;

(2) Intentional use of forged or altered bills;

(3) Issuing a short check or deliberately issuing a check that does not match the original signature or seal of the original name reserved to cheat property;

(4) issuing bills of exchange or promissory notes without reliable sources of funds to defraud funds;

(5) The drawer of the bill of exchange or cashier's order made false records in order to defraud property

of;

(6) fraudulent use of other people's bills, or deliberate use of expired or voided bills to defraud property;

(7) The payer maliciously colluded with the drawer and bearer to commit one of the acts listed in the preceding six items.

Article 103 If one of the acts listed in the preceding article is of a minor nature and does not constitute a crime, an administrative penalty shall be imposed in accordance with relevant state regulations.

Article 104: Staff members of financial institutions neglect their duties in the bill business, and shall impose sanctions on acceptance, payment or guarantee of bills in violation of the provisions of this Law; if they cause major losses and constitute a crime, they shall be investigated for criminal responsibility according to law.

If a staff member of a financial institution causes losses to the parties due to the actions in the preceding paragraph, the financial institution and the person directly responsible shall bear the liability for compensation according to law.

Article 105 Where the payer of a bill deliberately presses or delays payment of a bill that is due immediately after receipt of the bill, the financial administrative department shall impose a fine and punish the person directly responsible.

If the payer of the note deliberately presses the ticket, delays payment, and causes losses to the holder, he shall be liable for compensation according to law.

Article 106 Anyone who, in accordance with the provisions of this law, bears liability for other acts in violation of the provisions of this law in addition to liability for compensation, shall bear civil liability in accordance with the law.

Chapter VII Supplementary Provisions

Article 107 For the calculation of various time periods stipulated in this Law, the provisions of the General Principles of Civil Law regarding the calculation period shall apply.

If the term is calculated on a monthly basis, it is calculated on the day of the due month; if there is no date, the end of the month is the due date.

Article 108 The format of bills of exchange, promissory notes, and checks should be uniform.

The format and administrative measures for the printing of bills and vouchers shall be prescribed by the People's Bank of China.

Article 109 Specific implementation measures for bill management shall be formulated by the People's Bank of China in accordance with this Law and implemented after being submitted to the State Council for approval.

Article 110 This Law shall enter into force on January 1, 1996.

What Is a Principal Protected Note?

Bill law

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