international payment check cheque promissory note

Definition "Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay

CHECK/ CHEQUE

PROMISSORY NOTE

1 Definition

2 Parts of a check/ cheque

3 Why using check/ cheque ?

4 Types of checks/ cheques

5 How to fill a check/ cheque ?

CHECK -CHEQUE

1 Definition

"Cheque is an instrument in writing containing

an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on

demand a certain sum of money only to or to the order of certain person or to the bearer of

instrument."

DRAWER DRAWEE

The person (or bank) who

is expected to pay a check

2 Parts of a check/ cheque

A person who receives money from cheque

A certain sum of money

on cheque

DRAWER DRAWEE

PAYEE AMOUN

T

a bank/ other financial institution

The third person

on demand to,

or to the order

of a third person

CHECK VALIDITY

• Effective duration: usually calculated from the date

of issue and indicate on the check, depending on

national legislation

• Geneva Convention

8 days if Check issued and paid domestic

20 days if between countries in the region

(ex: Europe, Asian )

70 days if not the continent

Payment term: 120 days from the date written on the check

• Checks are convenient.

• Cancelled checks serve as receipts or proof of

payment

• Checks simplify bookeeping and budgeting

WHY USING

CHECK

???

• cost merchants or sellers

less to process compared

to credit and debit card transactions

• Writing checks the right way ensures that your checks are valid

• avoids bad check charges from your bank

• protects you from fraud.

Crossed check

Bearer check/ cheque

Order check/cheque

Post-Dated check/cheque

Stale check/cheque

4 Types of cheque

• A cheque is not crossed=> known as an

"Open Cheque" or an "Uncrossed

Cheque".

• Is taken to the bank (issued cheque) to

change into cash directly

Bearer check/ cheque

Order check/cheque

Drawer asks bank to pay sum of money to bearer

No need to deposit into bank account

People, who get this cheque, can receive money written on

cheque.

• Is payable to the person

named in the cheque or

his order

• Bank will pay if payee

can prove identity

Open check/

uncrossed check

Open check/

uncrossed check

Crossed

check/ cheque

Crossed

check/ cheque

• Is an account payee cheque

• Is paid by depositing into the receiver’s bank

• Can not change into cash

directly

• 2 Types of crossing: general crossing and special crossing

• drawing two parallel lines on the face of the cheque with or without additional words like

"& CO." or "Account Payee" or

• drawing two parallel lines on the face of the cheque with name of bank and with or without additional words "Not Negotiable"

Þ Payment can be made to

Post-Dated check/cheque

Stale check/cheque

Is dated earlier than the date written on cheque Can be cashed immediately

is dated later than date of check

Cannot be cashed until that date

Stale = Old

Is over than specified period of time (6 months) Some country will not honor this cheque

Date of check 28/2/2014

Anti-dated

check/cheque check/cheque Post-Dated

FURURE DATE

FURURE DATE

TODAY

6 MONTHS VALUE

6 MONTHS VALUE

Stale check

5 How to fill a cheque?

Check number

5 How to fill a cheque?

Check number

Date

• Cheque can be

numbered or do it yourself

• To balance your

account or spotting

a lost or stolen check

• The date of issue cheque

5 How to fill a cheque?

• signing on the back of

cheque if you use your name

• DO NOT WRITE a check to

cash if you don’t intend to immediately cash it yourself.

5 How to fill a cheque?

Amount in figures

Write the amount in figures (close to $)Write the cents part

EX: $ 20.56, can write

20.56

20 56

20 56/100

5 How to fill a cheque?

Amount

in

words

• Write out the dollar amount in words and the

cents in figures, with a line and 100 under the cents

• Draw a wavy line at space without writing

EX: $0.75 we can write

On figure: $.75 cents

On line of amount in words: ONLY seventy- five cents

CROSS OUT “DOLLARS”

5 How to fill a cheque?

• MUST sign your

name in ink (it must

be right with signature as opening bank account

• Never sign a blank

check

Signature

5 How to fill a cheque?

Memo

Write the reason why you want to draw this cheque

1 Definition

2 Parts of a promissory note

3 Types of promissory note

4 How to fill a promissory note?

PROMISSORY NOTE

1 Definition

• Is a financial instrument

• Is written, signed, unconditional

promise to pay by the maker

• at a fixed or determinable future

time / on demand of the payee, under specific terms

• Person who promises to pay

=> the MAKER

• Person to whom payment is

promised

=> PAYEE or HOLDER

HOLDER

PAYEE-Borrow money from holder

• Promise

• Make a schedule to repay at

a fixed or determinable future time

2 Parts of promissory note

MAKER PAYEE AMOUNT

3 Types of promissory noteSecured

notes

Secured notes

Unsecured notes

Unsecured notes

amount and interest

(such as mortgages and

deeds of trust).

• Non-payment can happen

• Maker borrows money

without any assurance

of return of the loan amount and interest

4 How to fill a promissory note?

Borrower, promisor, obligor - person who receives the money and must pay back the loan.

Lender, promisee, obligee - person who lends the money,

receives the payments for the loan

Loan information

• Write the amount of loan

• Loan period: the time borrower must

repay (can be called “Due date”,

“maturity date” )

4 How to fill a promissory note?

SOME OTHER FORMS, WE CAN SEE COLLATERAL PART

• Collateral: property offered in case payment cannot be made

• Security agreement: describes in detail the

collateral offered (ex: a car, the make, model,

year, mileage, etc.)

 http

://www.google.com.vn/imgres?sa=X&biw=1024&bih=443&tbm=isch

&tbnid=SMN3_NC9yRcnlM%3A&imgrefurl=http%3A%2F%2Fwww.d ocstoc.com%2Fdocs%2F44829413%2FPromissory-Note-(Installment- Payments-Without-Interest)&docid=A6k7Xh1iKToNrM&imgurl=http

%3A%2F%2Fimg.docstoccdn.com%2Fthumb%2Forig%2F44829413.p ng&w=1275&h=1650&ei=E_TYUsfbN4GglAWw7YHoAw&zoom=1&v ed=0CPkBEIQcMDQ&iact=rc&dur=729&page=4&start=42&ndsp=16

://www.google.com.vn/search?q=personal+promissory+note&biw= 1024&bih=443&tbm=isch&tbo=u&source=univ&sa=X&ei=DfTYUunR KMqQkAXEr4GgAg&ved=0CCkQsAQ#facrc=_&imgdii=_&imgrc=_

czZwr0xMluqZM%253A%3BnHBY7wSdUhOTEM%3Bhttp%253A%252 F%252Fwww.templatesmob.com%252Fwp-content%252Fuploads% 252F2011%252F09%252FPromissory-Note-Template.jpg%3Bhttp%2 53A%252F%252Fdict.space.4goo.net%252Fdict%253Fq%253Dpromi ssory%252Bnote%3B646%3B884

THANK YOU FOR YOUR LISTENING !