Content and Procedure for Drawing up a bill

A bill of exchange is an unconditional written promissory note, drawn up in the form prescribed by law, issued by one party (the drawer) to the other party (the holder) and paid for by stamp duty.

Distinguish:
- promissory notes
- bills of exchange

A promissory note is a written document containing a simple and unconditional obligation of the drawer (debtor) to pay a certain amount of money at a certain time and in a certain place to the holder or his order.

Two persons are involved in such a bill from the very beginning:
- the drawer, who himself directly and unconditionally undertakes to pay the bill issued by him.
- the acquirer (bill holder) who owns the right to receive payment under the bill.

The difference between a promissory note and other promissory notes is that:
- a bill of exchange can be transferred from hand to hand by an endorsement;
- liability for the bill of exchange for the persons participating in it is joint and several, with the exception of persons who have made a non-negotiable inscription;
- Appearance at a notary office to certify a signature is not required;
- in case of non-payment of the bill within the established period, it is necessary to make a notarial protest;
- the content of the bill is precisely established by law, and other conditions are considered unwritten;
- a bill of exchange is an abstract monetary document and, therefore, is not secured by a mortgage, pledge or penalty.

A bill of exchange (draft) is a written document containing an unconditional order of the drawer to the payer to pay a certain amount of money at a certain time and in a certain place to the recipient or his order.

The main difference between a bill of exchange and a simple one, which is essentially an IOU, is that it is designed to transfer, move values ​​from the disposal of one person to the disposal of another.

To issue (trace) a bill of exchange means to assume the obligation of a guarantee of acceptance and payment on it.

Consequently, it is possible to trace to another only if the drawer (drawer) has at his disposal the value of the drawee (payer) not less than the amount of the traceable bill. Unlike a simple bill of exchange, not two, but three persons participate in a bill of exchange: the drawer (drawer), who issues the bill, the first acquirer (or bill holder), who, together with the bill, receives the right to demand payment on it, and the payer (drawer), to whom the bill holder offers make a payment (in a bill of exchange this is indicated by the words: "pay", "pay").

Here the obligation of the drawer is conditional: he undertakes to pay the amount of the bill if the payer (drawee) does not pay it. The need for the drawer to fulfill such an obligation arises when the drawee did not accept and did not pay the bill, or accepted and did not pay. In the latter case, the drawee is equated with the drawer of a promissory note, and a non-payment protest is raised against him. The holder of a bill of exchange must promptly present the latter for acceptance (acceptance) and payment, since otherwise the failure to comply with these conditions may be attributed to his own fault.

In cases with promissory notes, their presentation to the payer for acceptance, and, consequently, drawing up a protest for non-acceptance is not required, i.e. from the very beginning of the appearance of the bill, there is a direct debtor. According to a bill of exchange, such a direct debtor acts only from the moment of acceptance of the bill by the payer. Up to this point, there is only a conditional debtor (drawer).

Bill protest. Consequences of the protest. Promissory note protest means an officially certified demand for payment and its non-receipt.

If the protest is made in a timely manner, then the following consequences occur:
- court bodies have the right to issue court decisions on claims based on protested bills;
- liability arises for a promissory note - the drawers, and in the transferable - the drawers and the drawer (drawer).
- the holder of a bill, incurring certain costs caused by the protest of the bill and non-receipt of payment on it, has the right to demand from the obligated persons a larger amount than indicated in the bill.

According to the Regulations, the value of the counterclaim of the holder of the bill includes the following.

1. Unpaid amount with interest, if any.
2. 6% per annum, starting from the date of maturity of the bill to the day of satisfaction.
3. Penalty in the amount of 3% per annum, counting from the day of the due date to the day of actual receipt by the bill holder from any of the obligated persons of the required money.
4. Costs associated with the protest.

In the event of the expiration of the time limits established for making a protest in non-acceptance or non-payment, the holder of a bill loses his rights against endorsers, the drawer and other obligated persons, with the exception of the acceptor.