( Approved by the State Council on June 23 , 1997 , and promulgated by Decree No. 2 of the People's Bank of China on August 21, 1997)
Article 1 These Measures are formulated in accordance with the provisions of the Law of the People's Republic of China on Negotiable Instruments ("the Law on Negotiable Instruments") for the purpose of enhancing the administration of negotiable instruments and maintaining the financial order.
Article 2 These Measures shall apply to the administration of negotiable instruments within the territory of the People's Republic of China.
Article 3 The People's Bank of China shall be the department for the administration of negotiable instruments.
The administration of negotiable instruments shall conform to the provisions of the Law on Negotiable Instruments and these Measures as well as relevant laws and administrative regulations and may not jeopardize the lawful rights and interests of parties to negotiable instruments.
Article 4 Parties to negotiable instruments shall, in accordance with the law, engage in activities involving negotiable instruments, exercise their rights over negotiable instruments and perform their obligations arising from negotiable instruments.
Article 5 Parties to negotiable instruments shall use negotiable instruments of unified forms as prescribed by the People's Bank of China.
Article 6 The drawers of banker's bills shall be the banks to handle banker's bills as approved by the People's Bank of China.
Article 7 The makers of banker's notes shall be the backs to handle banker's notes as approved by the People's Bank of China.
Article 8 The drawers of commercial bills shall be enterprises and other organizations other than banks.
The drawer of a commercial bill's applying to a bank for the bill acceptance must meet the following conditions:
(1) having a deposit account in an acceptance bank;
(2) having good credit and a reliable source of funds to pay the amount 'of
sum on the bill.
Article 9 A bank accepting commercial bills must meet the following conditions:
(1) having a bona fide relationship with the drawers authorizing payment;
(2) having reliable funds to pay the amount of sums on the bills.
Article 10 The holder of a commercial bill applying to a bank for discount must meet the following conditions:
(1) having opened a deposit account in the bank;
(2) having the true trading and debtor?credtor relationship between the the drawer and the prior party.
Article 11 The drawers of checks shall be enterprises, other organizations and individuals that have opened checking accounts in the banks, urban credit cooperatives and rural credit cooperatives handling checking accounts as approved by the People's Bank of China.
Article 12 The "guarantor" as used in the Law on Negotiable Instruments refers to the legal person, other organization or individual capable of assuming the debt of the negotiable instrument.
State agencies, institutions established for purpose of public welfare, public organizations and branches and functioning departments of an enterprise as a legal person may not act as guarantors, unless otherwise provided for by the law.
Article 13 The signature of the drawer on a banker's bill or the signature of the bank accepting a commercial bill means the bank's special seal for bills accompanied by the autograph or the seal of the bank's legal representative or authorized agent.
The signature of the maker on a banker's note means the bank's special seal for promissory notes accompanied by the autograph or the seal of the bank's legal representative or authorized agent.
The special bank seals for bills and special bank seals for promissory notes must be approved by the People's Bank of China.
Article 14 The signature of the drawer on a commercial bill means the unit's special seal for financial affairs or official seal accompanied by the autograph or the seal of the unit's legal representative or authorized agent.
Article 15 The signature of the drawer on a check means, if the drawer is a unit, the special seal for financial affairs or the official seal accompanied by the autograph or the seal of the unit's legal representative or authorized agent, which are the same as the specimen of signature left in advance at the bank by the unit; or if the drawer is an individual, the individual's autograph or the seal which is the same as the specimen of signature left in advance at the bank by the individual.
Article 16 The "true name" as used in the Law on Negotiable Instruments means the name on the identity card which conforms to laws, administrative regulations and the relevant provisions of the State.
Article 17 If the signature of the drawer or the maker on the negotiable instrument fails to conform to the provisions of the Law on Negotiable Instruments and these Measures, the instm?meet shall be null and void. If the signature of the endorser, the acceptor or the guarantor on the negotiable instrument fails to conform to the provisions of Law on Negotiable Instruments and these Measures, the signature shall be null and void, but this shall not affect the effect of other signatures on the instrument.
Article 18 "His agent" as used in the Law on Negotiable Instruments refers to the bank, the urban credit cooperative or the rural credit cooperative, which, as authorized by the drawee, makes payment of die swn on the negotiable instruments.
Article 19 A person who loses a negotiable instrument for which the payment can be stopped upon the notification of the loss as prescribed by the Law on Negotiable Instruments may promptly notify the drawee or his agent of the loss for the latter to stop payment thereon in accordance with the provisions of the Law on Negotiable Instruments.
When notifying the drawee or his agent of the loss for the latter to stop payment thereon, the person who loses the negotiable instrument shall fill in the notice to stop payment of the lost instrument and sign it. The notice to stop payment of the lost instrument shall contain the following particulars:
(1) time and cause of the loss;
(2) type, number and sum of the negotiable instrument, date of issue, date of payment, name of the drawee and name of the payee; and
(3) name of the person notifying of the loss for stop payment, place of business or domicile and the means of contact.
Article 20 The drawee or his agent who receives notice to stop payment of a lost instrument shall immediately suspend its payment. If, within twelve days from the date of receipt of the notice to stop payment of the lost instrument, the drawee or his agent fails to receive a stop?payment notice from the people's court, the notice to stop payment of the lost instrument shall be null and void as of the thirteenth day.
Article 21 The drawee or his agent having already made payment to the holder according to law before receipt of the notice to stop payment of the lost instrument shall no longer accept notice to stop payment thereof.
Article 22 Where an applicant applies to open a checking account, the bank, the urban credit cooperative or the rural credit cooperative may reach an agreement with the applicant on the use of payment codes on the check as terms for the payment of the sum on the check.
Article 23 The guarantor shall, in accordance with the provisions of the Law on Negotiable Instruments, specify the guarantee particulars on the negotiable instrument or the allonge. The guarantor who provides guarantee for the drawer, the drawee or the acceptor shall specify the guarantee particulars on the front of the negotiable instrument; and the guarantor who provides guarantee for the endorser shall specify the guarantee particulars on the back of the negotiable instrument or on the allonge.
Article 24 No unit or individual may freeze the amount of sum payable by a negotiable instrument which has been negotiated by endorsement according to lam, unless otherwise provided for by laws.
Article 25 "Receipt" as used in Article 55 of the Law on Negotiable Instruments means that the holder puts its signature on the front of the negotiable instrument which indicates that the holder has already received payment.
Article 26 If presentment for payment is made to the drawee through an authorized collecting bank or at a clearing system, the date of presenting the instrument to the bank by the holder shall be the date of presentment for payment.
Article 27 The "proof of dishonor" as used in Article 62 of the Law on Negotiable Instruments shall contain the following particulars:
(1) type and main particulars of the negotiable instrument which is dishonored by non?acceptance or non?payment;
(2) the factual basis and legal basis for the refusal of acceptance or payment;
(3) time of refusal of acceptance or payment; and
(4) signature of the acceptor or the drawee who makes refusal.
The "statement on reasons for dishonor" as used in Article 62 of the Law on Negotiable Instruments shall contain the following particulars:
(1) type of negotiable instrument dishonored;
(2) the factual basis and legal basis for dishonor;
(3) time of dishonor; and
(4) signature of the person returning the negotiable instrument.
Article 28 "Other relevant evidence" as used in Article 63 of the law on Negotiable Instruments means:
(1) evidence issued by a hospital or a relevant unit for the death of the acceptor or the drawee;
(2 ) evidence issued by a judicial organ of escape of the acceptor or the drawee; and
(3) the document having the effect of proof of dishonor issued by a notarial office.
Article 29 The "rate" as used in item (2) of paragraph 1 of Article 70 and in item (2) of paragraph 1 of Article 71 of the Law on Negotiable Instruments means the interest rate for liquid fund loans prescribed by the People's Bank of China.
Article 30 Whoever commits any of the acts listed in Article 103 of the Law on Negotiable Instruments shall be penalized by the public security organ according to law if the circumstance is minor and does not constitute a crime.
Article 31 If anyone, not for the purpose of defrauding money or property. signs and issues a rubber cheek or a check whereon the signature or seal is not consistent with the reserved specimen of signature or seal, the People's Bank of China shall impose a fine of 5 % of the face amount but not less than 1, 000 Yuan; and the holder has the right to request from the drawer a compensation of 2% of the sum on the check.
Article 32 If any staff member of a financial institution, through neglect of his duty in the activities involving negotiable instruments, accepts, pays, guarantees or discounts a negotiable instrument which is in violation of die provisions of the Law on Negotiable Instruments and these Measures, the person in charge directly responsible and other persons directly responsible shall be given warning, recording of a demerit, removal or dismissal; or if his act causes heavy losses and thin constitutes a crime, he shall be investigated for criminal liability according to law.
Article 33 If a drawee intentionally delays paying a negotiable instrument payable at sight or a matured instrument, the People's Bank of China shall impose fine of 0. 07%0 of the sum on the instrument for every day of the period o! suppression of instrument or deferred payment; and the person in charge directly responsible and other persons directly responsible shall be given warning, recording of a demerit, removal or dismissal.
Amide 34 If anyone, in violation of the provisions of the People's Bank of China, prints negotiable instruments without approval, the People's Bank of China shall order him to make amends and impose a fine of not less than 10,000 yuan aa?td not more than 200, 000 yuan; and if the circumstances are serious, the People',; Bank of China shall have the right to request the relevant department to revoke the violator's business license.
Article 35 The tomes, order of triplicate, color, size and anti?forgery technical requirements and the printing of negotiable instruments shall be prescribed by the People's Bank of China.
In determining the forms of negotiable instruments, the People's Bank of China may, in accordance with the actual needs of minority nationalities regions or foreign embassies and consulates in China, add languages of the minority nationalities or foreign languages.
Article 36 These Measures Shall come into force as of October 1, 1997.
