Research On Legal Lssues Of Bill Discount

Tickets are documented payer or the agreement itself in a specific maturity,unconditionally pay a certain amount to the payee or bearer securities. China NegotiableInstruments Article paragraph2,"In this Act, bill refers bills, promissory notes andchecks." Scholars generally believe that abstract of instruments is the biggest feature of thelegal bills. The so-called abstract of instruments means that the legal relationships on billare separated from the basic relationship. There are three aspects of performance of theabstract of instruments, namely because of the bill is to ensure the free circulation of bills,notes do not mention the reasons for the debt arising from the relationship, and the burdenof proof required notes on bills without cause. Discounted bills on the one hand can helpcompanies working capital, on the other hand can also promote financial institutions toexpand their business, improve service efficiency of financial intermediation.Currently, the legal standards of the bill has many deficiencies. This aspect makesfraud based on discounted bills arising more and more, it also led to the financialinstitutions which are not standardized and chaos in reviewing bills discounting behavior.First, the coordination of applicant’s eligibility is not enough, the main qualification for theapplication of discounting is not perfect, but given the heavy financial institutions toreview obligations. Second, bills discounted legal environment is very confusing. Part ofthe legal effect of discounting is considered inadequate. Norms for financial institutions inthe self-supporting self against discounting behavior is not in place. Meanwhile, folkdiscounted financing bills is also lack of effective legal regulation.To solve these problems. On the one hand, you want to re-examine the legal nature ofthe discounting of bills. The methods contains to reposition its role and effectiveness in theCommercial and Financial Law, and to fully implement the principle of abstract ofinstruments In order to conduct the release notes independence. On the other hand, to promote the legalization of discounted bills financing roads, thereby stimulate a huge rolein promoting discounted bills market economy.China’s current legal system for financial supervision of financial institutionssupervision discounting business conducted very strict. And there also are manydeficiencies in the concept. In fact, there are many deficiencies on discounted bills. Themain reason is that the lag of provisions of the Finance Act. Therefore, to adapt to China’seconomic development, it is necessary for the reconstruction of Negotiable Instruments totake place.