Bill of Exchange Law
                                           Introduction

                          History of Legal Regulation of Bill of Exchange

•            Local particular sources, lex mercatoria

•            Bill of Exchange Patent from 22 December 1763

•            Imperial Patent No. 51/1850

•            Bill of Exchange and Cheque Act No. 1/1928

•            Government Regulation No. 111/1941 from 19 December 1940

•            Bill of Exchange and Cheque Act No. 191/1950 "BECA“



                               Geneva Bill of Exchange System (1930)

•            3 Conventions

–       Convention on unified bill of exchange act with the first appendix - Uniform Law on Bills
of Exchange and Promissory Notes (78 articles).

–       Convention for the settlement of certain conflicts of laws in connection with bills of
exchange and promissory notes.

–       Fees



                             Economic Importance of Commercial Papers



•             payment instrument

•        payment by a bill of exchange (bill of exchange issued "pro soluto"),

•        payment by means of bill of exchange (bill of exchange issued "pro solvendo")

•             security instrument

•             instruments for foreign exchange transactions

–        bills of exchange payable at future dates, in other places, and different currencies

•             short term credit transactions (consumer credits)

                                     Types of Bill of Exchange

•           Bill of Exchange

•           Promissory Note

                                          Promissory Note

•             Special variant of a credit paper

•             Promise of a drawer (maker) to pay to a creditor (payee) certain financial sum

•             Characteristic expression „I will pay“

•             Two basic participants - maker and creditor (payee).

•             Maker of a promissory note is a direct debtor obliged by his sign to pay at the
maturity

                                         Bill of Exchange

•            higher number of participants

•            drawer, payee and drawee

•            payment order of a drawer to a drawee to pay certain financial sum to a payee

•            characteristic expression „Pay to".



                     Participants of the Bill of Exchange and Promissory Note



•              Drawer (maker)

–          maker of a promissory note obliges himself to pay at the maturity, direct debtor

–          drawer of a bill of exchange (trasant) is in a position of indirect, regress debtor
(Article 9)

•              Payee

–          person, in whose favour the bill is issued,

–          "remitent„

–          person named on the face of the bill of exchange or a promissory note to receive payment

•              Drawee

–          addressee of payment promise of the drawer

–          a real debtor only by the acceptance (till this moment he is obliged only potentially;
under certain circumstances he even does not have to know that he became a drawee)





                    Participants of the Bill of Exchange and Promissory Note II



•             Persons giving an aval guarantee

–         Section 30-32

–         special guarantee for payment of a bill ("aval„).

–         guarantee my be given by a person who has signed the bill as well

–         the giver of an aval is bound in the same manner as the person for whom he has become a
guarantor



•             Parties of endorsement

–         Indorser

–         Indorsee