When it comes to checks, although they are a kind of bills like money orders and promissory notes, the latter two are not only used as payment tools, but more of a credit function. The check is only used as a payment tool instead of cash, and its generation has also undergone long-term evolution. With the development of economy and commerce, people need to store and pay a lot of money, so banks are created. But individuals and businesses need a convenient means of withdrawing money if they want to use the bank, so there is a check. People can use checks to withdraw the money stored in the bank in advance, which not only facilitates the transaction, but the editor of the
acceptance bill
discount platform reminds everyone that this is the significance of people using checks a lot.
1. A check, a draft and a promissory note are all instruments, so they also have the commonality of bills. . These features include monetary securities, entitlement securities, essential securities, contextual securities, no-cause securities, reminder securities, etc.
2. A check is a kind of "entrusted security" like a draft, and a promissory note is a "self-paid security". The check is not paid by the drawer itself, but by the bank or other financial institution entrusted by the drawer to handle the check deposit business. Therefore, in addition to having a deposit in a financial institution, the drawer also needs to sign a payment entrustment contract with the institution.
3. The payers of checks are limited to banks and other financial institutions. This is different from a promissory note. A promissory note is paid by the issuing bank. The bank is the drawer, not the entrusted payer. It is also different from a bill of exchange. Although the bill of exchange is also an entrusted security, the payer of the bill of exchange is not limited. The payers of cheques are limited to financial institutions approved to handle cheque business, including banking institutions, urban credit cooperatives, rural credit cooperatives and other financial institutions.
4. Cheques are bills payable on sight. Notes are divided into demand notes and forward notes. The function of cheques is mainly reflected in the means of payment. In order to facilitate transactions, most countries stipulate cheques as sight bills, and our country only recognizes sight cheques.
5. Cheques do not need to be accepted. Checks are entrusted securities. The drawer signs an entrusted payment contract with a financial institution with which it has an account partnership, thereby setting payment obligations for the institution. Therefore, the payer in the check is unambiguous and does not need to be accepted separately.
6. The cheque can be blank to authorize the issuance of the cheque. Article 85 of my country's "Negotiable Instruments Law" stipulates: "The amount on the check can be rewritten by the drawer with the authorization of the drawer, and the check before it is not rewritten shall not be used." Article 86, paragraph 1, stipulates: "The receipt is not recorded on the check. The name of the person can be added with the authorization of the drawer." The generation of blank cheques is based on practical needs, which facilitates the use of cheques.
7. There needs to be a financial relationship between the drawer of the check and the payer. This is different from bills of exchange and promissory notes. Although a bill of exchange is an entrusted security, it does not require a capital relationship, and a promissory note is paid by the drawer, so there is no capital relationship at all.
8. The payment reminder period by check is short, which mainly reflects the payment function. Article 91 of my country's "Negotiable Instruments Law" stipulates: "The holder of a check shall present for payment within 10 days from the date of issuance of the check; for a check used in another place, the time limit for presenting payment shall be separately prescribed by the People's Bank of China." The payment reminder period of a check is very short, which weakens the credit function of the check and emphasizes the payment function of the check.
What are the characteristics of a check?
As an independent instrument, a check has common attributes and its own characteristics compared with a draft and a promissory note. It is embodied in the following aspects:1. A check, a draft and a promissory note are all instruments, so they also have the commonality of bills. . These features include monetary securities, entitlement securities, essential securities, contextual securities, no-cause securities, reminder securities, etc.
2. A check is a kind of "entrusted security" like a draft, and a promissory note is a "self-paid security". The check is not paid by the drawer itself, but by the bank or other financial institution entrusted by the drawer to handle the check deposit business. Therefore, in addition to having a deposit in a financial institution, the drawer also needs to sign a payment entrustment contract with the institution.
3. The payers of checks are limited to banks and other financial institutions. This is different from a promissory note. A promissory note is paid by the issuing bank. The bank is the drawer, not the entrusted payer. It is also different from a bill of exchange. Although the bill of exchange is also an entrusted security, the payer of the bill of exchange is not limited. The payers of cheques are limited to financial institutions approved to handle cheque business, including banking institutions, urban credit cooperatives, rural credit cooperatives and other financial institutions.
4. Cheques are bills payable on sight. Notes are divided into demand notes and forward notes. The function of cheques is mainly reflected in the means of payment. In order to facilitate transactions, most countries stipulate cheques as sight bills, and our country only recognizes sight cheques.
5. Cheques do not need to be accepted. Checks are entrusted securities. The drawer signs an entrusted payment contract with a financial institution with which it has an account partnership, thereby setting payment obligations for the institution. Therefore, the payer in the check is unambiguous and does not need to be accepted separately.
6. The cheque can be blank to authorize the issuance of the cheque. Article 85 of my country's "Negotiable Instruments Law" stipulates: "The amount on the check can be rewritten by the drawer with the authorization of the drawer, and the check before it is not rewritten shall not be used." Article 86, paragraph 1, stipulates: "The receipt is not recorded on the check. The name of the person can be added with the authorization of the drawer." The generation of blank cheques is based on practical needs, which facilitates the use of cheques.
7. There needs to be a financial relationship between the drawer of the check and the payer. This is different from bills of exchange and promissory notes. Although a bill of exchange is an entrusted security, it does not require a capital relationship, and a promissory note is paid by the drawer, so there is no capital relationship at all.
8. The payment reminder period by check is short, which mainly reflects the payment function. Article 91 of my country's "Negotiable Instruments Law" stipulates: "The holder of a check shall present for payment within 10 days from the date of issuance of the check; for a check used in another place, the time limit for presenting payment shall be separately prescribed by the People's Bank of China." The payment reminder period of a check is very short, which weakens the credit function of the check and emphasizes the payment function of the check.