A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. According to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. So, there are just three types of negotiable instruments such as promissory note, bill of exchange and cheque. Cheque also includes Demand Draft [Section 85A].
More specifically, it is a document contemplated by a contract, which (1) warrants the payment of money, the promise of or order for conveyance of which is unconditional; (2) specifies or describes the payee, who is designated on and memorialized by the instrument; and (3) is capable of change through transfer by valid negotiation of the instrument.
As payment of money is promised subsequently, the instrument itself can be used by the holder in due course as a store of value; although, instruments can be transferred for amounts in contractual exchange that are less than the instrument’s face value (known as “discounting”). Under United States law, Article 3 of the Uniform Commercial Code as enacted in the applicable State law governs the use of negotiable instruments, except banknotes (“Federal Reserve Notes”, aka "paper dollars").
Promissory note
A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand to the payee, or at fixed or determinable future time, certain in money, to order or to bearer. (see Sec.194) Bank note is frequently referred to as a promissory note, a promissory note made by a bank and payable to bearer on demand.
International law
Definition and usage of promissory notes are internationally established by the Convention providing a uniform law for bills of exchange and promissory notes, signed in Geneva in 1930.[1] Article 75 of the treaty stated that a promissory note shall contain:
- the term "promissory note" inserted in the body of the instrument and expressed in the language employed in drawing up the instrument;
- an unconditional promise to pay a determinate sum of money;
- a statement of the time of payment;
- a statement of the place where payment is to be made;
- the name of the person to whom or to whose order payment is to be made;
- a statement of the date and of the place where the promissory note is issued;
- the signature of the person who issues the instrument (maker).
new zealand red cross annual report
Our Annual Report has a new style this year, which we believe reflects the challenges we have all faced during this succession of disasters that has tested the human spirit. It powerfully illustrates just how New Zealand Red Cross makes a real difference every day. Photos and quotes from vulnerable people, beneficiaries and volunteers, bold graphics and a commemorate fold out show the breadth, reach and impact of our work.
In
addition, this year, following on from last year, we have also produced
a short informative summary report, called The Year in Review.
Click here to read
Bill of exchange
A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money to the payee. A common type of bill of exchange is the cheque (check in American English), defined as a bill of exchange drawn on a banker and payable on demand. Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. Prior to the advent of paper currency, bills of exchange were a common means of exchange. They are not used as often today.
A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to order or to bearer. (Sec.126)
It is essentially an order made by one person to another to pay money to a third person.
A bill of exchange requires in its inception three parties—the drawer, the drawee, and the payee.
The person who draws the bill is called the drawer. He gives the order to pay money to the third party. The party upon whom the bill is drawn is called the drawee. He is the person to whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates his willingness to pay the bill. (Sec.62) The party in whose favor the bill is drawn or is payable is called the payee.
The parties need not all be distinct persons. Thus, the drawer may draw on himself payable to his own order. (see Sec. 8)
A bill of exchange may be endorsed by the payee in favour of a third party, who may in turn endorse it to a fourth, and so on indefinitely. The "holder in due course" may claim the amount of the bill against the drawee and all previous endorsers, regardless of any counterclaims that may have disabled the previous payee or endorser from doing so. This is what is meant by saying that a bill is negotiable.
In some cases a bill is marked "not negotiable" – see crossing of cheques. In that case it can still be transferred to a third party, but the third party can have no better right than the transferor.
In the commonwealth almost all jurisdictions have codified the law relating to negotiable instruments in a Bills of Exchange Act, e.g. Bills of Exchange Act 1882 in the UK, Bills of Exchange Act 1908 in New Zealand, The Negotiable Instrument Act 1881 in India and The Bills of Exchange Act 1914 in Mauritius. The Bills of Exchange Act:
- defines a bill of exchange as: 'an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.
- defines a cheque as: 'a bill of exchange drawn on a banker payable on demand'
- defines a promissory note as: 'an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.'
Additionally most commonwealth jurisdictions have separate Cheques Acts providing for additional protections for bankers collecting unendorsed or irregularly endorsed cheques, providing that cheques that are crossed and marked 'not negotiable' or similar are not transferable, and providing for electronic presentation of cheques in inter-bank cheque clearing systems.
The 1911 Encyclopædia Britannica Eleventh Edition has a comprehensive article on the Bill of Exchange, detailing its history and operation, as understood at the time of its publication.
Westpac (a portmanteau of "Western-Pacific", registered as Westpac Banking Corporation, ASX: WBC, NZX: WBC), is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand.
As of November 2011, Westpac has 12.2 million customers, Australia's largest branch network with almost 1200 branches and a network with more than 2800 ATMs. The bank is Australia's second-largest provider of home lending and Australia's second-largest provider of wealth platforms by funds under administration. The bank is Australia's second-largest business banking lender and Australia's second-largest bank by assets.[1]
Westpac was recognised by the Dow Jones Sustainability Index as the most sustainable bank in the world for five years running, until ANZ who shared the title in 2007 was solely awarded in 2008.[4]
Established in Sydney in 1817, the Bank of New South Wales was the first bank in Australia. Edward Smith Hall was the first cashier and secretary. [10] During the 19th and early 20th century, the Bank opened branches first throughout Australia and Oceania, at Moreton Bay (Brisbane) in 1850, then in Victoria (1851), New Zealand (1861), South Australia (1877), Western Australia (1883), Fiji (1901), Papua New Guinea (1910) and Tasmania (1910).
- 1927: BNSW acquired the Western Australian Bank.
- 1990: Westpac issued the Westpac Mastercard, which promised to pay 5% to the Red Cross
- 1990: Bank of New Zealand sold half its shares in Bank of Tonga to WBC and half to Bank of Hawaii, giving each of them 30%. WBC bought Banque Indosuez's operations in New Caledonia and Tahiti. (Banque de l'Indochine, which later merged into Banque Indosuez, had established itself in New Caledonia in 1888 and in Papeete, Tahiti in 1905. In both places l'Indochine functioned as the bank of issue until 1966-7.)
- 1992: WBC recorded a 1.6 billion dollar loss, which at the time, was the largest loss for an Australian corporation. In this environment, the Bank dismissed staff and raided the superannuation[citation needed] to sustain its viability. In the process WBC came close to insolvency, and slipped from being Australia's largest to third largest bank.[citation needed]
- 2011: During July Bank Of Melbourne started operations taking over St.George in the state of Victoria.
In December 2009, Westpac raised its rates on variable mortgages by 0.45%, more than the Reserve Bank's official rate rise of 0.25%.[13] Westpac justified the move on increased costs of funding, using an analogy with the price of bananas to explain the reasons to its customers.[14] The move drew considerable criticism, with the Prime Minister Kevin Rudd suggesting the bank should take "a long hard look at itself",[15] and other major banks such as NAB, who raised rates in line with the Reserve Bank, attacking Westpac for its move.[16]
[edit] US Federal reserve borrowings
In January 2008 and 2009 Westpac secured US$1.09 billion from the Federal Reserve in secret dealings without the knowledge of the public or the Australian government. It is believed that if the Federal Reserve did not bailout out the bank, then the bank would have been bailed out by the Reserve Bank of Australia.[17][18]
The Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or foreign currency fee, may still apply for some account holders. Participating banks cover Australasia, Asia, Europe, Africa, North America and South America.
Participating banks are as follows (however note that some banks, e.g. Bank of America, will only honor ATM reciprocity for one country per bank, e.g. fees will not be charged for Barclays branches in the UK or Deutsche Bank branches in Germany, but fees are charged for branches of those banks in other countries, see "Coverage Areas" below):