Negotiable Instruments Law of the Peoples Republic of China (2004 Revision)

(Adopted at the 13th Session of the Standing Committee of the Eighth National People’s Congress on May 10th, 1995; Revised at the 11th Session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on August 28th, 2004)
 Contents
Chapter I General Provisions
 Chapter II Drafts
 Section 1 Drawing of Drafts
 Section 2 Endorsement
 Section 3 Acceptance
 Section 4 Guarantee
 Section 5 Payment
 Section 6 Right of Recourse
 Chapter III Promissory Notes
 Chapter IV Checks
 Chapter V Application of Law on Foreign-related Negotiable Instruments
 Chapter VI Legal Responsibilities
 Chapter VII Supplementary Provisions
 
Chapter I General Provisions
 Article 1 The law has been drawn up with a view to standardizing the behavior in the transaction of negotiable instruments, protecting the legitimate rights and interests of parties involved in the negotiable instruments transaction activities, safeguarding the social and economic order and promoting the development of the socialist market economy.
 Article 2 The law applies to all transaction activities in negotiable instruments within the territory of the People’s Republic of China.
 The negotiable instruments as referred in this law include bills of exchange, promissory notes and checks.
 Article 3 Activities of negotiable instruments transaction shall abide by law, administrative regulations and decrees, and shall not in any way infringe upon the public interests.
 Article 4 In drafting negotiable instruments, a drawer shall put his/her signature or seal to the instruments according to the legal conditions and bear the liabilities for the negotiable instruments in compliance with the items recorded on them.
 In exercising the rights associated with the negotiable instruments, a holder shall put his/her signature or seal to the negotiable instruments according to the legal procedures and present the instruments.
 Other debtors who have put their signatures or seals on the negotiable instruments shall assume the obligations in compliance with the items recorded on them.
 The term “rights associated with the negotiable instruments” used in this law refers to the rights of the holder to claim payment according to the amount specified in the negotiable instruments, including the right of claim and the right of recourse.
 The term “obligations associated with the negotiable instruments” used in this law refers to the obligations of the debtor to pay the amount specified in the negotiable instruments to the holder.
 Article 5 Parties to a negotiable instrument may entrust their agents to put their signatures or seals to the instruments and clearly indicate their agency relationship.
 If a negotiable instrument bears the signature or seal in the name of an agent without the power of attorney, the obligations associated with the negotiable instrument shall be performed by the person or persons who have put the signatures or seals to the negotiable instrument. If an agent has gone beyond his/her attorneyship, he/she shall perform the obligations associated with the negotiable instrument on the part that exceeds his/her term of reference.
 Article 6 If a negotiable instrument bears the signature or seal of a person who is incapable of civil acts or by a person whose civil acts have been restricted, the signature or the seal is invalid, but that shall not affect the validity of other signatures and seals on the same instrument.
 Article 7 The signature/seal on a negotiable instrument mean signature or seal, or signature plus seal.
 The signature/seal of a legal person and other unit using negotiable instruments shall be the seal of the legal person or unit plus the signature or seal of their legal representative or their authorized agent.
 The signature on a negotiable instrument shall be the true name of the person who signs it.
 Article 8 The amount of a negotiable instrument shall be written in both Chinese characters and in numerals and the two shall tally with each other. The negotiable instruments shall be invalid if the words and figures do not tally.
 Article 9 The items recorded in a negotiable instrument shall conform to the provisions of this law. The amount, date and name of the receiver shall not be altered. If they are altered, the negotiable instrument shall become invalid.
 Other matters recorded in a negotiable instrument may be altered by the original recorder and the alteration shall be certified by a signature or seal put on it by the original recorder.
 Article 10 The draft, acquisition and transfer of a negotiable instrument shall follow the principle of authenticity and creditability and be treated as a real act of trading or debt payment.
 A negotiable instrument shall be acquired against a corresponding price, that is, the price acknowledged by both parties to a negotiable instrument.
 Article 11 If a negotiable instrument is obtained free of charge according to law due to taxation, inheritance and donation, it is not restricted by the corresponding price rule. But the rights to the instrument enjoyed shall not be superior than those enjoyed by the prior holder.
 The prior holder refers to a debtor who puts his/her signature or seal to the negotiable instruments before acquired by the present signer or holder.
 Article 12 In the case of obtaining a negotiable instrument by deception, theft or coercion or obtaining a negotiable instrument which has been knowingly obtained by deception, theft or coercion out of malicious motives, the holder shall not enjoy the rights associated with the negotiable instruments.
 A holder who has obtained the negotiable instruments not conformable to the provisions of this law due to major errors shall not enjoy the rights associated with the negotiable instruments either,
 Article 13 The debtor for a negotiable instrument shall not protest against the holder on the ground of protesting against the drawer or the prior holder, except when the holder has obtained the negotiable instrument with the clear knowledge of the ground for protest.
 The debtor for a negotiable instrument may protest against the holder having direct debtor-creditor relationship with him/her but refusing to perform his/her agreed obligations.
 The term “protest” used in this law refers to the act of the debtor for a negotiable instrument s to refuse to perform obligations to the creditors according to the provisions of this law.
 Article 14 Matters recorded on the negotiable instruments shall be true to the facts. Forging or alteration is not allowed. Those who forge or alter the signatures or seals or other items recorded on the negotiable instruments shall bear legal responsibilities.
 The forged or altered signatures or seals do not affect the validity of the true signatures or seals on the same negotiable instruments.
 If any item recorded on the negotiable instruments has been altered, the person who signs the instrument before the alteration shall be responsible for the matters originally recorded. The person who signs the instruments after the alteration shall be responsible for the matters recorded after the alterations. If it is impossible to tell whether the signatures or seals are made before or after the alteration, they are regarded as being made before the alterations.
 Article 15 In the case of loss of a negotiable instrument, the person who loses it may timely notify the payer of the negotiable instrument to refuse payment on the lost instrument, except in the cases in which the payer is not recorded or it is impossible to determine the payee and the agency payer.
 The payer shall suspend payment after receiving the notice for suspending payment due to lost instrument.
 Owner of the lost negotiable instrument shall, within three days of issuing the notice for suspending payment due to lost instrument, or immediately after the negotiable instrument is lost, apply for public summons with the People’s Court or indict with the People’s Court.
 Article 16 The exercising of the rights associated with the negotiable instruments on instrument debtors or the right for the protection of the negotiable instrument shall be conducted at the business sites and during the business hours of the parties to the negotiable instruments and, if the parties to the negotiable instruments have no business sites, it shall be conducted in their residences.
 Article 17 The rights to the negotiable instruments shall expire if not exercised within the following time limits:
 1. Within two years from the time of the maturity of the negotiable instruments for the right of the holder to the drawer and acceptor, or, within two years from the date of draft for bills and notes payable at sight;
 2. Within six months from the date of draft for the right of the holder to the drawer;
 3. Within six months from the date of non-acceptance or dishonor for the right of recourse of the holder to the prior holder;
 4. Within three months from the date of liquidation or the date of indictment for the right of re-recourse.
 The date of draft and the due date shall be fixed by parties to the negotiable instruments according to law.
 Article 18 Holders who have lost the right to the negotiable instruments due to the expiry of the validity period for the exercise of the rights to the negotiable instruments or due to the inadequacy of the recordings on the negotiable instruments still enjoy the civil rights and may request the drawers or acceptors to return the interests in equal amount specified in the negotiable instruments unpaid.
 
Chapter II Drafts
 
Section 1 Drawing of Drafts
 Article 19 A draft is a bill signed by the drawer, requiring the entrusted payer to make unconditional payment in a fixed amount at the sight of the bill or on a fixed date to the payee or the holder.
 Drafts include bank drafts and commercial drafts.
 Article 20 The drawing of a draft refers to the act of a drawer to sign and deliver the draft to the payee.
 Article 21 The drawer of a draft shall have real authorized payment relations with the payees and have reliable sources of fund to pay the draft amount.
 It is forbidden to sign drafts without corresponding prices for the purpose of acquiring funds from banks or other parties to the negotiable instrument by deception.
 Article 22 A draft shall bear the following items:
 1. Chinese characters denoting “draft”;
 2. Commission on unconditional payment;
 3. The amount of money fixed;
 4. Name of the payer;
 5. Name of the payee;
 6. Date of draft;
 7. Signature of the drawer.
 A draft lacking one of the items listed above is invalid.
 Article 23 The date of payment, place of payment and place of draft recorded on the draft shall be clear and definite.
 If a draft does not bear the date of payment, it is a draft payable at sight.
 If a draft does not bear the place of payment, the place of payment shall be the business site or the residence of the payer or the place where the payer often lives.
 If a draft does not bear the place of draft, the place of draft shall be taken as the business site or residence of the drawer or the place where the drawer often lives.
 Article 24 Items other than those provided for by this law may be recorded on a draft, but such items do not have the draft effect.
 Article 25 The date of payment may be recorded in one of the following forms:
 1. Payable at sight;
 2. Dated payment;
 3. Payable on a fixed date after draft;
 4. Payable on a fixed date after sight.
 The date of payment provided for in the preceding paragraph is the due date of the draft.
 Article 26 After signing the draft, the drawer shall bear the responsibility of ensuring the acceptance and payment of the draft. If a drawer has failed to get the draft accepted or paid, the drawer shall undertake to pay the amount and expenses provided for in Article 70 and Article 71 of this law.
 
Section 2 Endorsement
 Article 27 The holder of a draft may transfer the rights associated with the draft or authorize others to exercise some of the rights.
 If the drawer writes the Chinese characters meaning “Not Transferable” on a draft, the draft shall not be transferred.
 In exercising the rights provided for in the first paragraph, the holder shall endorse it and deliver the draft.
 “Endorsement” refers to the recording of items concerned on the backside of a draft or on the allonge to the draft with a signature or seal put to the record.
 Article 28 If the draft instrument has not enough space to satisfy the needs of writing, an allonge may be attached.
 The first person who writes on the allonge shall put his/her signature or seal to the sticking line of the allonge.
 Article 29 An endorsement shall be signed by the endorser, with the date of endorsement.
 An endorsement without date shall be regarded as an endorsement before the due date.
 Article 30 If a draft is endorsed over to another person entirely or in part, the draft shall bear the name of the endorser.
 Article 31 In endorsing over a draft to others, the endorsement shall be in uninterrupted series. The holder shall prove the rights associated with the draft by an uninterrupted series of endorsement. If a draft is not endorsed over to another person, the holder shall put to the proof the right on the draft according to law.
 The term “uninterrupted series” used in the preceding paragraph refers to the sequential consistency in the signatures or seals by the endorser and the endorsee in the transfer of negotiable instruments.
 Article 32 In endorsing a draft to others, the subsequent endorser shall be responsible for the authenticity of the endorsement by the immediate prior endorser.
 The subsequent endorser refers to the other debtors involved in the draft signed after the signer of the draft.
 Article 33 An endorsement shall not have conditions attached, If an endorsement has conditions attached, the conditions do not have the effect on the draft.
 The endorsement which transfers part or the entire amount on the draft to two or more persons is invalid.
 Article 34 If an endorser writes the words “Not Transferable” on a draft and the draft is transferred by the subsequent endorser, the original endorser shall not bear the liability of guarantee to the subsequent endorsee.
 Article 35 If an endorsement bears the word “Collection”, the endorsee has the right to exercise the rights to the draft commissioned on behalf of the endorser. But the endorsee shall not re-endorse over a draft to others.
 A draft may be mortgaged. In mortgaging a draft, the word “Hypothecation” shall be written in the form of endorsement. When having acquired the hypothecation according to law, the endorsee may exercise the rights to the draft.
 Article 36 A draft shall not be endorsed over to others when it has been refused to pay or accepted or the time of payment as indicated is overdue. If such a draft is endorsed over to others, the endorser shall bear the liability of the draft.
 Article 37 After an endorser has endorsed over a draft to others, the endorser shall be liable to ensure the draft in the hands of the subsequent holder are accepted or paid. If an endorser cannot get the draft accepted or paid, the endorser shall undertake to claim payment in the amount of the draft plus expenses from the holder as provided in Article 70 and Article 71 of this law.
 
Section 3 Acceptance
 Article 38 Acceptance refers to a promise of a draft payer to pay the actual amount of draft when the draft is due.
 Article 39 For a draft payable on a fixed date or on a fixed date set after the date of draft, the holder shall make presentation for acceptance to the payer before the due date of draft.
 Presentation for acceptance refers to the act of the holder to present the draft and demand for the pledge of the payer to pay.
 Article 40 For a draft payable on a fixed date after sight, the holder shall present it for acceptance to the payer within one month starting from the date of draft.
 If a holder has failed to make presentation for acceptance according to the prescribed time limit, that holder shall lose the right of recourse against the prior holder.
 No presentation for acceptance is necessary for a draft payable at sight.
 Article 41 A payer shall accept or refuse to accept a draft for which the presentation for acceptance has been made within three days after receiving the draft for which presentation for acceptance is made.
 After receiving the draft for which presentation for acceptance is made, the payer shall sign an acknowledgment for receiving the draft. The acknowledgment shall specify the date of the presentation for acceptance and shall be signed.
 Article 42 In accepting a draft, the payer shall write “Accepted” across the face of the draft and the date of acceptance and fix the seal. For a draft payable on a fixed date after sight, the date of payment shall be recorded in acceptance.
 If no date of acceptance is recorded on a draft, the last day of the time limit prescribed in the first paragraph of the preceding article shall be taken as the date of acceptance.
 Article 43 There shall be no conditions attached in accepting a draft. If there are conditions attached in acceptance, it shall be regarded as refusal of acceptance.
 Article 44 After accepting a draft, the payer shall be liable to pay when the draft is due.
 
Section 4 Guarantee
 Article 45 A guarantor shall undertake the liabilities of guaranty for the debt involved in the draft. A guarantor shall be some person other than the debtor of the draft.
 Article 46 A guarantor shall record the following items on the draft or allonge:
 1. The word “Guarantee”;
 2. Name and residence of the guarantor;
 3. Name of the guaranteed party;
 4. Signature or seal of the guarantor.
 Article 47 If a guarantor has failed to record item 3 of the preceding article on the draft or allonge, the acceptor shall be the guaranteed party of the accepted draft; and the drawer shall be the guaranteed party for the draft not accepted.
 If the guarantor has failed to record item 4 of the preceding article, the date of draft shall be the date of guaranty.
 Article 48 A guarantor shall guarantee that there are no conditions attached. If conditions have been attached, they shall not affect the liability of guaranty for the draft.
 Article 49 A guarantor shall undertake the liability of guaranty for the right to the draft enjoyed by the holder who has acquired the draft according to law, except cases when the debt guaranteed has become invalid due to inadequate recording in the draft.
 Article 50 A guarantor shall undertake several liability together with the guaranteed for the draft under guarantee. If the draft is not paid when due, the holder has the right to demand the guarantor for payment and the guarantor shall pay the full amount.
 Article 51 If there are two or more guarantors, the guarantors shall undertake a joint and several liability.
 Article 52 After the draft debt is cleared, the guarantor may exercise the right of recourse of the holder against the guaranteed and the prior holder.
 
Section 5 Payment
 Article 53 A holder of a draft shall make presentation for payment according to the following time limits:
 1. Presentation for payment shall be made to the payer within one month starting from the date of draft for a draft payable at sight;
 2. Presentation for payment shall be made to the acceptor within 10 days starting from the due date for a draft payable on a fixed date or on a fixed date after the date of draft or on a fixed date after sight.
 When the holder has failed to make presentation for payment within the time limited prescribed in the preceding paragraph and some explanations are made, the acceptor or payer shall continue to undertake the liability of payment to the holder.
 If the presentation for payment is made through banks entrusted with collection or through negotiable instruments exchange system, it shall be regarded as presentation for payment made by the holder.
 Article 54 If a holder presents for payment according to the provisions of the preceding article, the payer shall pay in the full amount of the draft on the same day.
 Article 55 If a holder has got the payment, the holder shall sign the draft and hand the draft to the payer. If a holder has entrusted a bank for the collection, the bank entrusted shall enter into the account of the holder the amount of the draft collected and that shall be regarded as signed and accepted.
 Article 56 The liabilities of a bank entrusted with collection by the holder are confined to transferring of the amount of the draft into the account of the holder according to the recordings on the draft.
 Article 57 In making out payments, the payer or its entrusted payer shall examine the consistency of the endorsement and check the legal identification or valid documents of the person who makes presentation for payment.
 If a payer or its entrusted payer makes the payment out of malicious motives or out of major blunder, the payer or its entrusted payer shall bear the liabilities on their own.
 Article 58 If a payer makes the payment before the due date for draft payable on a fixed date or on a fixed date after the date of draft or on a fixed date after sight, the payer shall bear the responsibilities arising there from on his own.
 Article 59 If the draft amount is specified in foreign currency, the payment shall be made in Renminbi according to the market exchange rate quoted on the day of payment.
 If the parties to a draft have agreements concerning the currencies for payment, the provisions of the agreement shall apply.
 Article 60 After the payer has paid the draft amount in full, the liabilities of all debts shall be relieved.
 
Section 6 Right of Recourse
 Article 61 Upon a refusal of payment to a draft, the holder may exercise the right of recourse against the endorser, drawer or other debtors of the draft.
 The holder may also exercise the right of recourse before the due day of a draft in one of the following cases:
 1. The acceptance of a draft is refused;
 2. The acceptor or payer has died or fled, or is living in hiding;
 3. The acceptor or payer has been declared bankrupt according to law or whose business operations have been suspended due to violations of the law.
 Article 62 In exercising the right of recourse, the holder shall provide the certificates relating to the refusal of acceptance or dishonor.
 In refusing the presentation for acceptance or for payment by the holder, the acceptor or payer shall produce certificates of dishonor or the statement on the ground for protest. If the acceptor or payer has failed to produce the certificate of dishonor or the statement on the ground for protest, the acceptor or payer shall bear all the civil responsibilities arising therefrom.
 Article 63 If no certificate of dishonor can be obtained due to the death, flee or hiding of the acceptor or payer or other reasons, other related certificates may be obtained according to law.
 Article 64 If an acceptor or a payer has been declared bankrupt by the people’s court according to law, the related judicial documents of the people’s court have the effect of certifying the dishonor.
 If an acceptor or a payer whose business operations have been suspended due to law violations, the related decisions on punishment by related administrative department in charge have the effect of certifying the dishonor.
 Article 65 If a holder is unable to present certificates of dishonor, the statement on the ground for protest or provide other legal certificates within the prescribed time limit, the holder shall lose the right of recourse against the prior holder. But the acceptor or payer shall continue to undertake the liabilities to the holder.
 Article 66 A holder shall, within three days starting from the date of receiving the certificates relating to refusal of acceptance or dishonor, notify in writing the prior holder of the dishonor. The prior holder shall, within three days of receiving the notice, notify in writing the still preceding prior holder of the dishonor. The holder may also issue written notices to all the debtors of the draft all the same time.
 The holder may continue to exercise the right of recourse even if notification is not made within the time limit prescribed in the preceding paragraph. If the holder has delayed the notification to the prior holder or drawer and caused losses thereby, the parties that have failed to make the notification within the prescribed time limit shall be liable to compensate for the losses, with the amount of compensation being the draft amount.
 If the notice has been sent out according to the legal address or the addresses agreed upon within the prescribed time limit, the notification is regarded as having been issued.
 Article 67 The written notice served according to the provisions of the first paragraph of the preceding article shall contain the main recordings of the draft and clearly indicates that the draft has been dishonored.
 Article 68 The drawer, endorser, acceptor and guarantor shall bear a joint and several liability with regard to the holder.
 A holder may exercise the right of recourse against one person or several persons or all the draft debtors in disregard of the sequential order of the debtors.
 After a holder has exercised the right of recourse against one person or several persons involving in the draft, the holder may also exercise the right of recourse over others involved in the draft. The person against whom the right of recourse has been exercised will enjoy the same right as the holder after the debt has been cleared.
 Article 69 In the case in which the holder is the drawer, the holder has no right of recourse to the prior holder. In the case in which the holder is the endorser, the holder has no right of recourse against the subsequent holders.
 Article 70 In exercising the right of recourse, the holder may request the person subject to recourse to pay the following money and expenses:
 1. The amount of the draft dishonored;
 2. The interests calculated according to the rate fixed by the People’s Bank of China on the draft amount from the due date or the date of presentation for payment to the date of liquidation.
 3. The expenses incurred in obtaining the related certificates of dishonor and the issuing of notification.
 When the person subject to recourse is clearing his debt, the holder shall deliver the draft and related certificates of dishonor and produce the receipts for the interests and expenses received.
 Article 71 After debt clearance according to the provisions of the preceding article, the person against whom the right of recourse has been exercised may exercise the right of re-recourse against other draft debtors and request other debtors to pay the following amount and expenses:
 1. The complete amount cleared;
 2. The interests on the amount cleared, calculated according to the rate fixed by the People’s Bank of China from the date of liquidation to the date of liquidation for re-recourse.
 3. Expenses on issuing notifications.
 When the person who exercises the right of re-recourse is getting paid, that person shall deliver the draft and related certificates of dishonor and produce the receipts for the interests and expenses received.
 Article 72 The liabilities of the person against whom the right of recourse shall be relieved after the debt has been liquidated according to the provisions of the preceding two articles.
 
Chapter III Promissory Notes
 Article 73 A promissory note is an instrument written and issued by a drawer, promising to pay unconditionally a fixed amount of money to a payee or holder at the sight of the instrument.
 The term “promissory note” used in this law refers to the bank note.
 Article 74 The drawer of a promissory note shall have a reliable source of funds for paying the amount of the promissory note and ensure payment.
 Article 75 A promissory note shall record the following items:
 1. The characters indicating “Promissory Note”,
 2. Unconditional promise to pay;
 3. Amount of money fixed;
 4. Name of the payee;
 5. Date of issue;
 6. Signature of the drawer.
 A promissory note is invalid if one of the above items is missing.
 Article 76 The place of payment, the place of issue and other items recorded on the promissory note shall be clear and definite.
 If the instrument does not bear the place of payment, the business site of the issuer shall be taken as the place of payment.
 If the instrument does not bear the place of issue, the business site of the issuer shall be taken as the place of issue.
 Article 77 When the holder of a promissory note presents the instrument, the drawer shall be liable to pay.
 Article 78 The maximum time limit of payment shall not exceed two months starting from the date of draft.
 Article 79 If a holder has failed to present the instrument according to the prescribed time limit, the holder shall lose the right of recourse against the prior holders other than the drawer.
 Article 80 The provisions on related draft in Chapter Two of this law shall apply with regard to the acts of endorsement, guaranty and payment and the exercise of the right of recourse, except otherwise provided for in this chapter.
 The provisions on related draft in Article 24 of this law shall apply with regard to the act of draft, except otherwise provided for in this chapter.
 
Chapter IV Checks
 Article 81 A check is an instrument issued by a drawer, at the sight of which the check deposit bank or other financial institutions unconditionally pay the fixed amount to the payee or holder.
 Article 82 In opening a check deposit account, an applicant shall use the true name and present the legal document that certifies his/her identification.
 In opening a check deposit account and using checks, there must be a reliable creditability and a certain amount of money deposited in the bank.
 In opening a check deposit account, an applicant shall leave samples of the signature or seal in the true name of the applicant.
 Article 83 A check can be cashed or transferred into other accounts. For account transfer, a clear indication shall be made across the face of the check.
 If checks are used especially for cashing, cash checks can be made separately. A cash check can only be used for cashing.
 If checks are used especially for account transfer, transfer check can be made separately. Transfer checks can only be used in account transfer. Cashing is not allowed.
 Article 84 A check must record the following items:
 1. Characters denoting “Check”,
 2. Commission to pay unconditionally;
 3. Amount fixed;
 4. Name of the payee;
 5. Date of draft;
 6. Signature of the drawer.
 A check shall be invalid if one of the above items is missing.
 Article 85 The amount on a check may be filled in afterwards by the holder with the authorization of the drawer. The check with the amount not filled in shall not be used.
 Article 86 If a check does not bear the name of the payee, it may be recorded afterwards with the authorization of the drawer.
 If a check does not bear the place of payment, the business site of the payer shall be taken as the place of payment;
 If a check does not bear the place of issue, the business site, residence of the drawer or the place where the drawer often lives shall be taken as the place of issue.
 A drawer can record himself as the payee on a check.
 Article 87 The amount of the check issued by the drawer shall not exceed the actual amount deposited by the payer at the time of payment.
 If the amount of the check issued by the drawer has exceeded the actual amount deposited by the payer at the time of payment, the check is a dishonorable check, which is strictly forbidden.
 Article 88 The drawer shall not issue checks with the signature or seal that does not tally that submitted for counter-checking.
 Article 89 A drawer shall undertake the liabilities to ensure the payment to the holder according to the amount of the check issued.
 If the deposit of the drawer at the place of payee is enough to pay the full amount of the check, the payer shall pay the full amount on the day.
 Article 90 A check is payable at sight and not date of payment shall be recorded. The record on the date of payment is invalid.
 Article 91 The holder of a check shall make presentation for payment within ten days starting from the date of draft. The time limit on the presentation for payment shall be provided for by the People’s Bank of China.
 In the case when the time limit on the presentation for payment expires, the payer may refuse to pay. In the case when the payer refuses to pay, the drawer shall still bear the responsibility on the instrument to the holder.
 Article 92 If a payer has paid the amount of a check, the payer shall no longer bear the liability for payment to the drawer and shall not bear the liability for payment to the holder, except the cases when payment is made out of ulterior motives or due to major blunder.
 Article 93 The provisions on related draft in Chapter Two of this law shall apply with regard to the acts of endorsement and payment and the exercise of the right of recourse with regard to a check, except otherwise provided for in this chapter.
 The provisions on related draft in Article 24 of this law shall apply with regard to the act of draft except otherwise provided for in this chapter.
 
Chapter V Application of Law on Foreign-related Negotiable Instruments
 Article 94 The application of law concerning foreign-related negotiable instruments shall follow the provisions of this chapter.
 The term “foreign-related negotiable instruments” used in the preceding paragraph refers to instruments whose draft, endorsement, acceptance, guaranty or payment occur both within and outside the territory of the People’s Republic of China.
 Article 95 In the case when the provisions of the international treaties to which the People’s Republic of China is a signatory party or in which the People’s Republic of China has joined differ from the provisions of this law, the provisions of the international treaties apply, except those articles on which the People’s Republic of China has declared to have reservations.
 For cases where there are no provisions in this law or in the international treaties to which the People’s Republic of China is a signatory party or in which the People’s Republic of China has joined, the common international practice shall apply.
 Article 96 For the capability of civil acts of debtors of negotiable instruments, the domestic law shall apply. In the case when a debtor is regarded as being incapable of civil act by the domestic law or whose civil act is restricted but the debtor is regarded as having the capability of civil act by the law of the place of act, the law of the place of act shall apply.
 Article 97 For recordings on the draft and promissory notes when drafting, the law of the place of draft shall apply.
 For the recordings on the checks, the law of the place of issue shall apply. But the law of the place of payment may also apply if the parties concerned so agree.
 Article 98 For acts of endorsement, acceptance, payment and guaranty for negotiable instruments, the law of the place of act shall apply.
 Article 99 For the time limit for exercising the right of recourse concerning negotiable instruments, the law of the place of draft shall apply.
 Article 100 For the time limit for presentation of negotiable instruments, the method of certificates of dishonor and the time limit for producing certificates of dishonor, the law of the place of payment shall apply.
 Article 101 For the procedures for applying for protection of negotiable instruments by a holder who has lost negotiable instruments, the law of the place of payment shall apply.
 
Chapter VI Legal Responsibilities
 Article 102 Criminal responsibilities shall be affixed on one of the following acts of deception:
 1. The act of forging or altering a negotiable instrument;
 2. The act of deliberately using forged or altered negotiable instruments;
 3. The act of issuing dishonorable checks or deliberately issue checks whose signature or seal does not tally with the signature or seal in the true name pre-submitted for counter-checking.
 4. The act of issuing drafts or promissory notes without reliable sources of funds in order to obtain money by deception.
 5. The act by the drawer of drafts or promissory notes to make false recordings at the time of draft in order to obtain property or money by deception.
 6. The act of using negotiable instruments of others or deliberately use negotiable instruments overdue or voided in order to obtain property and money by deception; and
 7. A payer has committed one of the aforesaid acts in vicious collaboration with the drawer or holder.
 Article 103 Administrative punishments shall be meted out according to the relevant State provisions on one of the aforesaid acts if the case is not serious enough to constitute a crime.
 Article 104 A staff member of financial institutions shall be punished for accepting, paying or providing guarantee for negotiable instruments in violation of the provisions of this law due to dereliction of duty in his operations. If serious losses incur and the case is serious enough to constitute a crime, criminal responsibilities shall be affixed.
 In cases when losses have been incurred on the parties to negotiable instruments due to the aforesaid acts by staff members of financial institutions, the financial institutions and persons directly responsible shall undertake the liabilities of compensation according to law.
 Article 105 In cases when the payer deliberately detain negotiable instruments payable at sight or negotiable instruments due in order to delay payment, the payer shall be fined and the person or persons directly responsible shall be punished by the financial administrative departments.
 If losses incur to the holder or holders due to deliberate detainment of instruments and delay of payment on the part of the payer, the payer shall undertake the liabilities of compensation.
 Article 106 For acts other than those for which the liabilities of compensation shall be undertaken according to the provisions of this law that have caused losses to others, the person who has committed the acts shall undertake the civil responsibilities according to law.
 
Chapter VII Supplementary Provisions
 Article 107 For the calculation of various time limits provided for by this law, the provisions on the time of calculation of the Civil Procedures Law shall apply.
 For time limit calculated monthly, the calculation shall be made according to the corresponding date of the month due; in the absence of corresponding date, the last day of the month shall be taken as the due date.
 Article 108 The forms of draft, promissory note and check shall be unified.
 The forms of the negotiable instruments and the method for the control of printing shall be provided for by the People’s Bank of China.
 Article 109 The specific methods of the administration of negotiable instruments shall be formulated by the People’s Bank of China in accordance with this law and submitted to the State Council for approval.
 Article 110 The law shall be implemented as of January 1st, 1996.

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