Execution of protests of bills

Ukrainian legislation provides that the use promissory note (ie act as the maker, acceptor of a bill and endorsers, guarantor) can only entities – business entity.

 

Promissory note is taken to make a protest of non-payment within 12 hours of the day next following the expiration of the payment.

 

Promissory note – is a peculiar way of loan, which allows the seller in the form of deferred payment for sold goods  to the buyer.

 

Promissory note may be issued only for payment for delivered goods, works and services rendered, except bills of Ministry of Finance, National Bank and commercial banks in Ukraine.

 

Promissory note commitment must be unconditional, inclusion in the bill of any condition entails its invalidity.

 

If the maker within a prescribed period has not paid the amount specified in the bill, the protest of the promissory note enables the  payee to collect the debt through the state executive service.

 

How to identify the reality of the promissory note?

 

Simple promissory note must have the following details:

  •  It should be named as  ” promissory note” and nothing else;
  •  Contain a promise to pay a certain amount (it should be simple and unconditional);
  •  Have a clearly defined period of payment (if the bill is not specified maturity, bill of exchange payable on demand);
  •  It must have the specified location where the payment must be realized;
  •  Specify name which or whos order you must make the payment;
  •  Contain the date and place of the promissory note (if there is no specific place full payment, the place of drawing up the document considered the place of payment, and at the same time and location of the taxpayer);
  •  Signature of the person who issues a document (the maker).

 

Bill of exchange must contain:

  •  Name: bill of exchange;
  •  Indication the period of payment;
  •  Indication of the place, where you must to make payment  (if there is no specific place payment, the place indicated along with the name of the payer is considered the place of payment);
  •  The date and place, where the bill of exchange was written;
  •  Signature of the person who issues a document (the maker);
  •  Simple and unconditional offer to pay a certain amount;
  •  The name of the one who has to pay (payer).

 

PLEASE PAY ATTENTION – IT’S IMPORTANT!

 

If the document lacks any aforementioned details are required for simple and bills of exchange, these promissory note have no legal force.

 

For more information please contact our lawyers.

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