We, a bank in the Netherlands, have been confronted with the following issue. Are promissory letters the same as promissory notes? If not, what is the difference?
We have been informed by a greek bank that the issue of promissory notes incurrs stamp duty of 0.52% of the face value of the notes, while this is not the case for promissory letters. Is there a legal aspect that one has to consider? Can you protest promissory letters?
Promissory note or letter
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APrins-Vendrig
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PGauntlett
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Promissory note or letter
The Geneva Convention requires the term 'Promissory Note' to be inserted in the body of the instrument therefore I don't think that a Promissory Letter will have the same characteristics as a P/N.
You would have to treat this letter as a statement of intent.
If they changed the the name of the letter to Prom Note it would still need to meet the requirements of ART 75 of Geneva Convention (and local law)
You would have to treat this letter as a statement of intent.
If they changed the the name of the letter to Prom Note it would still need to meet the requirements of ART 75 of Geneva Convention (and local law)
Promissory note or letter
Both the Geneva Convention and the local law on bills of exchange have very strict forms for the bills of exchange, of which the promissory note is one.
"Promissory letter" is not the kind of "promissory note" that is under the bills of exchange laws and convention. It is something else.
From another perspective, without payment of stamp duty that is applicable to a "promissory note", the "promissory letter" may not be recognised by local law as a valid bill of exchange.
It follows that "endorsement", "negotiation", "protest" and "noting" may be invalid and may also not be recognised by the local law.
Laws on bills of exchange are different from one country to another. Different countries impose different valid formats and requirements.
Parties should consult their legal counsel or an expert before they create another new document.
Please ask the person who gives you the "promissory letter, this question:
"I wish to take your 2001 Mercedes. May I pay you with 'currency letter' since it is the same as 'currency note' anyway?"
I am from www.tolee.com
[edited 12/2/01 10:38:35 PM]
"Promissory letter" is not the kind of "promissory note" that is under the bills of exchange laws and convention. It is something else.
From another perspective, without payment of stamp duty that is applicable to a "promissory note", the "promissory letter" may not be recognised by local law as a valid bill of exchange.
It follows that "endorsement", "negotiation", "protest" and "noting" may be invalid and may also not be recognised by the local law.
Laws on bills of exchange are different from one country to another. Different countries impose different valid formats and requirements.
Parties should consult their legal counsel or an expert before they create another new document.
Please ask the person who gives you the "promissory letter, this question:
"I wish to take your 2001 Mercedes. May I pay you with 'currency letter' since it is the same as 'currency note' anyway?"
I am from www.tolee.com
[edited 12/2/01 10:38:35 PM]