Template:M intro repack negotiable instrument: Difference between revisions

Template:M intro repack negotiable instrument (view source)

Revision as of 09:55, 21 June 2023

1,173 bytes removed , 21 June 2023

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

83,428

edits

@@ Line 45: / Line 45: @@
 At a high level, debt securities closely resemble promissory notes. They are a form of securitised [[loan]].
-There is a striking absence of authority on promissory notes and bills of exchange — possibly coincident with the rise of electronic transfer techniques — and much of what authority we do have feels a bit airy and jazz hands, when it doesn’t seem just plain wrong.
-For example, there is some authority from Canada that bearer bonds are not [[promissory note|promissory notes]] within the meaning of the [[Bills of Exchange Act]], but we are bound to say we are not persuaded by it. The suggestion is as follows:
-{{quote|
-A bond is not an unconditional promise to pay, but the bond itself ... is a promise to pay subject to all the conditions referred to in the bond.<ref>''Weidman Bros v  Guaranty Trust Co'' [1955] 5 DLR 107.</ref>}}
-But this is to make a category error. There is conditions in the sense of [[conditions precedent]] before the satisfaction of which the obligation does not arise, and then there are conditions in the sense of terms and conditions of a bond, which may include, for example, “this is an unconditional promise to pay upon demand”. A document containing no conditions of the second kind is not a contract or instrument of any kind.
 ===Negotiability===
 All this is further confused if the holder of a bill of exchange is entitled to negotiate it — to sell it, effectively, in the secondary market to a random third party.