Английский язык для юристов. Предпринимательское право

like terms signifying a purpose of deposit or collection, or otherwise states that it is for the benefit or use of the endorser or of another person.

A conditional endorsement, a type of restrictive endorsement, makes the rights of the endorsee subject to the happening of a certain event or condition.

Endorsements for deposit or collection are designed to get an instrument into the banking system for the purpose of deposit or collection. When a check is indorsed «for deposit only» the amount of the instrument is credited to the endorser's account before it is negotiated further. Retail stores often stamp each check «for deposit only» when it is received. This wording provides protection in the event the check is stolen. Checks mailed to the bank for deposit should always be indorsed in this way.

A restrictive endorsement limits the subsequent use of the instrument. An endorsement that purports to prohibit further transfer, such as «pay John Doe only,» may be further negotiated after the directions in the endorsement are carried out. Thus, after John Doe is paid, any holder of the instrument may continue to negotiate it. A restrictive endorsement does not prevent further transfer or negotiation of the instrument.

A qualified endorsement is one in which words have been added to the signature that limit the liability of the endorser. By adding the words without recourse to the endorsement, the endorser is not liable in the event the instrument is dishonored, that is, not paid by the maker or drawer.

An accommodation party is one who signs an instrument in any capacity for the purpose of lending his or her name to another party to the instrument.

Thus, an accommodation party who signs on the front of a promissory note below the signature of the maker assumes the same liability as the maker. On the other hand, an accommodation party who signs on the back of the instrument assumes the same liability as an endorser. An accommodation party is not liable to the party accommodated. The party accommodated, however, is liable to the accommodation party if the latter pays the instrument.

If an instrument is payable to either of two payees, the endorsement of only one of the payees is necessary to negotiate it. On the other hand, if an instrument is payable to both of two payees, the endorsement of both payees is necessary for a proper negotiation.

A depository bank that has taken in an item for collection may supply any endorsement of the customer that is necessary to title. This rule is designed to speed up bank collections by eliminating the necessity to return to a depositor any items that were not indorsed. Such an endorsement may not be supplied by a bank, however, if the instrument contains the words payee's endorsement required.

Exercise 1. Comprehension questions:

1. In what case is an instrument indorsed?

2. When does an assignment of commercial paper occur?

3. What are the standards for check endorsements?

4. What are the cases when a blank endorsement should be used?

5. How can be a blank endorsement converted into a special one?

6. What does a restrictive endorsement suppose?

7. Explain what an accommodation party is.

8. When is the endorsement of both payees required and when not?

Exercise 2. Find in the text English equivalents to the following:

Лицо, выписавшее дружеский вексель; листок, прилагаемый к векселю для дополнительных индоссаментов; переуступка; бумага на предъявителя; бланковый индоссамент; индоссамент, содержащий определенное условие; отказывать в акцепте или оплате векселя; полный индоссамент; учет векселя; передаточная надпись, содержащая специальное условие; ограниченный индоссамент; именная передаточная надпись.

Exercise 3. Consult recommended dictionaries and give words or phrases to the following definitions:

Простой вексель; переводной вексель; оплата по предъявлении; подлежит оплате по приказу; коносамент; акцептированная банковская тратта; обеспеченный вексель; обыкновенный вексель; облигации на предъявителя; депозитный сертификат; банковский чек; банковский индоссамент; передаточная надпись; условие о сокращении срока исполнения обязательства; форма подписи; подпись торгового агента; безусловное обещание; определенная сумма; точно определенный срок.

Exercise 4. Be ready to talk on one of the following topics:

1. Differentiate between an assignment and a negotiation of commercial paper.

2. Name and describe four kinds of endorsements.

3. Identify the implied warranties that are made when people indorse negotiable instruments.

4. Explain the contract that is made when people indorse negotiable instruments.

5. Determine the endorsements required on instruments with more than one payee.

Exercise 5. Make up your own dialog on the case: In Riegler v. Riegler, husband and wife both signed as makers of a note and were subsequently divorced. When the payee secured judgment against both parties, the husband sued his ex-wife for contribution. The wife argued that she only signed as an accommodation party and was not liable. The trail court found for the husband, because the wife had received benefits from the proceeds of the note. On appeal, the Arkansas Supreme Court affirmed on the basis of the wife's testimony that the proceeds of the note were used to build a house in which she had a half interest.

Unit 13 Holders in Due Course, Defenses, and Liabilities Добросовестное владение и обстоятельства, освобождающие от ответственности

Добросовестность владения определяется тем, что владелец не знает и не должен знать о незаконности своего владения, при этом, возможно, и осознавая, что собственником соответствующей вещи он не является. Поэтому установление добросовестности зависит от оснований завладения вещью (статья 10 ГК РФ).

List of key terms and word combinations:

– failure (want) of consideration – отпадение встречного удовлетворения, отпадение основания договора

– holder – держатель; владелец; предъявитель

– holder in due course – законный владелец, держатель

– lack of consideration – недостаточность возмещения

– personal (limited) defense – правовая защита против ограниченного круга держателей ценных бумаг

– presentment – предъявление векселя к акцепту или оплате

– primary liability – первичное обязательство

– protest – протест, опротестование (векселя) || опротестовывать (вексель)

– real (universal) defense – универсальная защита против неограниченного круга держателей ценных бумаг

– secondary liability – акцессорная ответственность; субсидиарная ответственность

A holder in due course is a holder who takes the instrument for value, in good faith, without notice that it is overdue or has been dishonored and without notice of any defenses against it or claim to it. Holders in due course receive more rights in negotiable instruments than their transferors had. Largely for this reason, negotiable instruments are passed freely from one person to another almost in the same way as money. A payee may be a holder in due course.

A holder in due course takes an instrument free from all claims to it on the part of any person and free from all personal defenses of any party with whom the holder has not dealt. Personal defenses (sometimes called limited defenses) can be used against a holder, but not a holder in due course, of a negotiable instrument. When an instrument is negotiated to a holder in due course, personal defenses cannot be used against a holder in due course unless one has first dealt with the holder in due course. The most common personal defenses are breach of contract, lack or failure of consideration, fraud in the