InternationalSettlement解读.doc

International Settlement
The Research Objective of International Settlement

Chapter one：Introduction to International Settlement
1.国际结算的定义
Definition of International settlement International settlement refers to the money transfer via banks to settle accounts,debts and claims among different countries.
国际结算是指处于两个不同国家的当事人，通过银行办理的两国间货币收付业务。
2.Three elements in international settlement（国际结算中的三要素）
(1)Persons in different countries（不同国家）
Buyers and sellers in the international transaction are not competitors,but cooperative partners for seeking long-term and common interest.
(2) Bank’s Participation（银行参与）
(1)facilitating funds transfer efficiently world-wide;

(2)promoting transactions because of their easily supervising both buyer and seller;

(3) Funds transfer (资金转移）
Funds transfer always happens in the following activities:
visible trade：importing and exporting the tangible and visible commodity and goods.Importers in one country must make payment to exporters in another country for their imported goods;on the other hand,exporters must receive payment from the overseas buyers.
invisible trade：It includs service trade,technology transfer,patent,copyright contracts,etc. service trade include all receipts and payments betwwen the residents and foreigners on transportation,insurance,travel,communications,postage and bank service,etc.
financial transaction：International financial transaction covers foreign exchange market transaction,government supported export credits,syndicated loans,etc.
payment between governments ：The government of one country may make payment to that of another country for political,military,or economic reasons,such as giving aids and grants,providing disaster relief,etc.
3. Types of International Settlement
visible trade International Trade Settlement
invisible trade
financial transaction International Non-trade Settlement
payment between governments
4.Evolution of Modern International Settlement
Ø From barter transaction to cash settlement 从易货交易到现金结算
Ø From cash settlement to non-cash settlement从现金结算到非现金结算
Ø From direct payment made between international traders to payment effected through a financial intermediary从直接支付到通过金融中介支付
Ø From payments under simple price terms to payments under more complex price terms从简单贸易术语结算到复杂贸易术语结算

From traditional settlement to E-settlement从传统结算到电子结算
4. Characteristics of Modern International Settlement

5. Types of International Banking Offices
①Representative Office（代表处）
A representative office is a small service facility staffed by parent bank personnel that is designed to assist MNC clients of the parent bank in dealings with the bank’s correspondents.
-----Promotes the bank in the local market
-----Not licensed or chartered
-----May not accept deposits or make loans
-----Directs business to other offices or affiliates
-----Representative offices also assist with information about local business customs, and credit evaluation of the MNC’s local customers.
‚Agency Office（代理处）
Agency office is the overseas financial institution which can transfer money and make loans in foreign country.
-----One part of the parent bank,not a dependent legal person(juristic person).
-----Not to accept deposits, but can make loans,provide trade financing, issuing L/C, and make acceptance.
l③Foreign Branch（海外分行）
An office of an organization that is located outside the home country of that organization where a banking or financing business is conducted.
A foreign branch bank operates like a local bank, but is legally part of the the parent.
-----Subject to both the banking regulations of home country and foreign country.
-----Can provide a much fuller range of services than a representative office.
Branch Banks are the most popular way for U.S. banks to expand overseas.
④Correspondent Bank（代理银行）
The correspondent bank can be defined as “a bank having direct connection or friendly service relations with another bank.”
-----A correspondent banking relationship exists when two banks maintain deposits with each other.
-----Correspondent bank is very necessary in global economy. Even for large international bank,such as Bank of China, the establishment of the correspondent relationship is still very important because they cannot do any business without the cooperation of local banks.
⑤Subsidiary and Affiliate Bank（附属银行）
A subsidiary bank is a locally incorporated bank wholly or partly owned by a foreign parent.
An affiliate bank is one that is partly owned but not controlled by the parent.
A consortium bank refers to a joint venture in which no single owner has a controlling interest.
o⑥Affiliated Bank（联营银行）
p⑦Consortium Bank（银团银行）
7.How to establish correspondent bank relationship
①　 Choose the best bank
-----The following factors should be considered:
1) The reputation of the bank
2) Size of the Bank
3) Service offered by the bank
4) Physical feature and personnel
②　 Signing contract and exchanging control documents(控制文件）
Control documents include:
Specimen Signature(印鉴样本） Telegraphic test key（密押）
Terms and conditions（条款费率表）
8. Inter-bank accounts (银行往来帐户）
Banks always open an account in other banks in foreign countries,thus forms the inter-bank accounts.

l To credit sb’s a/c with 贷记某人或某某单位帐户一定金额
l To debit sb’s a/c with借记某人或某某单位账户一定金额
l Credit Advice and Debit Advice贷记报单和借记报单
9. Basic Methods of International Settlement

Chapter 2: Instruments in International Settlement(结算工具)
一．negotiable instruments定义：
A written promise or order signed by the maker to transfer a specified sum of money on demand or at a fixed future time to the person named on the instrument or to the bearer. Examples of negotiable instruments are promissory notes, drafts and cheques.
二．Essentials of of a negotiable instrument
² Be in writing
² Be signed by the maker or drawer
² Be an unconditional promise or order to pay
² State a fixed amount of money
² Be payable on demand or at a definite time
² Be payable to order or to bearer
三． Characteristics of Negotiable Instruments
1) Establishing the claim for a sum certain in money(票据创设了付给一定金额的请求权）
2)Accepting the instruments without investigating or questioning(票据是无因证券，不必追究原因的证券）
Once the instrument is issued, rights on the instrument and reasons why instruments are created are separated，independent to each other.(票据一旦做成，票据上权利即与其原因分离，成为独立的票据债权债务关系，不受先前原因关系存在与否的影响）
Example: A deposit money in B,and A buys goods from C, then A issued an instrument to C,paid by B; C transfers the instrument to D because C once borrowed money from D; And D transfers the instrument to E for some value relationship; E asks B to make payment.

3)The form of instruments should keep up with law. Only those accordance with law can be protected.
4) Instruments can be transferred.
5) Instruments has the right of recourse.(追索权）
四．Functions of Negotiable Instruments
1. Acting as transferable tools(汇兑工具）
---Direct cash payment in international transaction is inconvenient
2. Acting as payment tools（支付工具）
-----Substitute for money,basic function
-----Inconvenient for big deals in business,and also risks
-----Widely accepted to take the place of money in circulation
-----Can be endorsed(背书)
3. Acting as credit tools（信用工具）
-----Core function because credit is the “life” of instrument
五． Types of Negotiable Instruments
Drafts Promissory Notes Checks
u Drafts
（一） 定义
A bill of exchange is an unconditional order in writing, addressed by one person to another,signed by the person giving it,requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money,to,or to the order of,a specified person,or to bearer.
In a simple words,A bill of exchange or draft is a three-party instrument that is an unconditional written order by one party that orders the second party to pay money to a third party.
汇票是由出票人向另一人签发的要求即期、定期或在可以确定的将来时间向指定人或根据其指令向来人无条件支付一定金额的书面命令。

（二） Elements of Bill of Exchange (Draft)
1) The word “exchange” “bill of exchange ” or “draft”
2) an unconditional order in writing (无条件书面支付命令）
①must be in writing, including printed（印刷） and typewritten（打字机打印） . Oral expression is invalid.
k ②Should be imperative（命令式）, not subjunctive mood(虚拟语气）.
③Without any restriction or condition
注：如果以某一将来不确定事件--- 偶发事件---的发生作为付款的先决条件，也同样使汇票无效。
3）three parties(三个当事人）
①“Drawer”– Party who draws the bills and orders another to pay the third party.(usually exporter or his bank in international trade)
k“ ②Drawee”(payer) – Party who is ordered to pay the third party.(usually the importer or the appointed banker under a letter of credit in international trade)
l ③“Payee” – Third party who will receive payment(usually exporter or his appointed bank or person)
4）Tenor(付款期限）
——Demand bill
①Demand bill(or sight bill)
-----a bill payable on demand.
-----The drawee will be required to pay at once when he sees the bill or when the bill is presented to him for payment.
k ②A demand bill(or sight bill ) can be expressed in the following ways:
On demand pay…. On presentation pay…. At sight pay….
——Usance bill
j ①Usance bill
----Payable at a future time
----Also called time bill or term bill
k ②Usance bill is usually expressed in the following ways:
---Payable at a fixed time after sight
E.g. “Pay 30 days after sight….” means 30 days after the accepting date is the due date to effect payment.
---Payable at a fixed time after date
E.g. “ Pay 60 days after date….”means the due date will be 60 days after the issuing date.
----Payable at a fixed future date.
E.g. “Pay on Sept.30,2008….”
----Payable at a fixed time after the occurrence of a specific event which is certain to happen
E.g. Pay 3 months after the B/L date….”
注：calculate the due date
A) If a bill is payable at a fixed time after sight,after date or after the happening of a specific event,the time of payment is calculated by counting in the date of payment but counting out the accepting date,the issuing date or the date of happening of the specified event.
B) After calculation, if the date of payment falls on a non-business day,the bill shall be payable on the succeeding business day.
E.g. A bill is payable at 90 days after sight and the bill is presented for acceptance on April 15,2006.This means that April 15 is the accepting date,and the tenor should be calculated from April 16,instead of April 15.
C)If a bill is payable at a fixed time from a fixed date, then this fixed date should be counted in.
E.g. a bill is payable at 90 days from April 15,then April 15 should be counted in.
The word “after” should be understood to exclude the date mentioned and the word “from”should be understood to include the date mentioned.
5) Payable to a specified person or his order or to bearer(three types of bill)(汇票抬头）
①restrictive order：payable to a specified person only or to a specified person not negotiable/transferable.
E.g. Pay to Mary White only. Pay to Mary White not transferable.
②demonstrative order：Payable to a specified person or some other person designated by him,without further words prohibiting transfer.
E.g. Pay to Mary White. Pay to Mary White or order.
③bearer order：Payable to bearer with no specified person as a payee thereon.Any person holding a bearer order bill will become the owner of the bill.
E.g. Pay to bearer. Pay to bearer or Mary White.
6）A Sum Certain in Money(汇票金额）
①j Payable at fixed amount.There should be no “about” or “or so” to modify the amount.e.g.
② The amount in words and figures.
③ The bill should be made payable only in money other than in other kinds of physical goods or intangible services.
汇票须经出票人签字才能成立其债权债务关系。
7） Drawer’s Signature
---Other acceptable signature:
-----in the form of a trade name贸易公司的名称
-----a corporation’s seal公司的图章
8)Name and address of the drawee(付款人）
9）Date and place of issue(出票时间地点）
10)Reasoning of issuing---the reason of issuance,i.e according to which L/C of which bank the bills of exchange are issued.(“Drawn under L/C No.569547 of Bank Brussels Lambert, 18 Rafles Place HEX 42-00 OUB Centre Singapare 048616, Dated December 18,1998”)
11)Bill of exchange is sometimes drawn in ‘sets’ of two or three parts.
-----（draw） in sets of two or three 开立一式2份或一式3份
（三） Acts on Bill of Exchange
1) Issue（出票）One act is to draw and sign a draft;another is to deliver it to the payee.

2) Endorsement（背书）Endorsement is the signature of the endorser（背书人） made on the back of bill of exchange.
①The aim of the endorsement is to transfer the draft from one person to anothe
②Endorsement comprises two acts.One is to sign on the back of the draft,another is to deliver it to the endorsee（被背书人(受让人)）.
③Must be made for the whole amount of the draft,and an endorsement for a partial amount will be considered as invalid endorsement.
④Four types of endorsement
1)Blank endorsement:an endorsement in blank is one that shows an endorser’s signature only and specifies no endorsee.
It is also called a general endorsement.A draft so endorsed becomes payable to bearer.
For example：
For A Co., London—(the endorser)
Signature(of the endorser)
2)Special endorsement:A special endorsement is one that specifies an endorsee to whom or to whose order the draft is to be paid, in addition to the signature of an endorser.
For example,
Pay to the order of B Co., London—(the endorsee)
For A Co., London—(the endorser)
Signature(of the endorser)
l 3)Restrictive endorsement:An endorsement is restrictive when it prohibits further transfer of the draft.
Pay to ABC Bank only--(the endorsee)
For A Co.,London—(the endorser)
Signature(of the endorser)
4)Conditional endorsement:
A conditional endorsement transfers ownership subject to a specified term and condition.
For example,
Pay to the order of B Co. on delivery of B/L to Hong Kong Bank.
For A Co., London
Signature
3) Presentation（提示）Presentment/Presentation is to be made by the holder to the person designated as drawee for payment if it is a sight bill and for acceptance and payment if it is a time bill.

注；As a general rule, a bill of exchange must be duly(按时） presented for payment, and if it is not so presented, the drawer and endorsers are discharged（解除债务）. This is a vitally impor