Promissory note circulation

Promissory note circulation – the movement of promissory notes in the sphere of circulation as monetary documents. Arising based on commerce. loan, promissory note expands its framework and extends the scope of application beyond the boundaries of relations between individual branches of production, which are directly related to each other. However, promissory note circulation has limitations caused by the very nature of commerce. a promissory note as a personal debt obligation, in particular, can circulate only in a limited circle aware of mutual solvency. This limitation of promissory notes causes banks to need to replace private commerce promissory notes. As a debt monetary obligation, a promissory note has some essential features, chap. of which there is an abstractness since, having arisen based on the concrete. the agreement, the promissory note is separated from it and exists independently. contract. To the world, the practice of promissory notes is regulated by laws and regulations based on international promissory note rights, which quite a liberal assumes. The procedure for their release, in particular, no state is required for this. Registration of promissory note, no spec. protecting him in undefined form, not before. conditions of its appearance. Participants in an agreement concluded using a promissory note are only required to have legal and legal capacity. undefined [Encyclopedia of Modern Ukraine]. In contrast to promissory notes legislation of many countries, Ukrainian legislation does not recognize a natural person (citizen of Ukraine or another state) as a participant in promissory notes. Only legal entities and subjects of business activity, recognized as such by the current legislation of Ukraine, can use promissory notes and act as promissory note issuers, acceptors, endorsers, or guarantors. The specified provisions are enshrined in the Rules for the production and use of promissory note forms, which were approved by the resolution of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine dated 10.09. No. 528 of 1992 and are valid until the approval of the Procedure for issuing and circulating promissory notes. Before lifting the specified restrictions, the drawer or endorser who wishes to transfer his right to receive debt to an individual or a foreign partner may assign the claim in a generally civil manner. Today, it is possible to single out several types of promissory notes in demand in Ukraine. This, first of all, undefined bills: electric, gas, telephone. There is also a demand for treasury bills, metallurgical plants, and the chemical industry. But buyers of these bills are quite specific; as a rule, they have their circle of traders, and applications for purchasing these bills are very rare on the stock market.[Osvita UA].

Sources:

Вексельний обіг. Encyclopedia of Modern Ukraine. Retrieved from: https: //esu.com.ua/search_articles.php?id=32657

Вексельний обіг в різних галузях українського народного господарства. Реферат. Osvita UA. Retrieved from: https://osvita.ua/vnz/reports/econom_theory/21999/