Vietnam: What should a beneficiary do when the negotiable instrument is lost? If the person who is not the beneficiary loses a negotiable instrument, what should he/she do?
Vietnam: What should a beneficiary do when the negotiable instrument is lost?
Pursuant to Clause 4, Article 13 of the Law on Negotiable Instrument 2005 stipulates as follows:
Loss of negotiable instruments
1. Where a negotiable instrument is lost, the beneficiary must immediately notify in writing the drawee, the drawer or the issuer. The beneficiary must notify clearly the circumstances in which the negotiable instrument was lost and shall be responsible before the law for the truthfulness of such notice. The beneficiary may notify the loss of the negotiable instrument by telephone and other direct methods if so agreed by the parties.
Where the person who is not the beneficiary loses a negotiable instrument, he or she must immediately notify the beneficiary.
2. Where a negotiable instrument is lost prior to its maturity for payment, the beneficiary shall be entitled to request the drawer or issuer to re-issue a substitute negotiable instrument with the same contents as the lost negotiable instrument after the beneficiary has notified the loss of the negotiable instrument and made a written undertaking to make payment on behalf of the drawee or issuer if the negotiable instrument which has been notified as lost is presented by a lawful beneficiary for payment.
3. Upon receipt of notice of loss of a negotiable instrument in accordance with clause 1 of this article, the issuer and the drawee shall not be allowed to pay such negotiable instrument. The check and control of negotiable instruments which have been notified as lost shall be subject to regulations of the State Bank of Vietnam.
4. Where a lost negotiable instrument is misused for payment before the drawee or the issuer receives notice of loss of the negotiable instrument, the drawee or issuer shall be relieved from his or her responsibility if he or she has conducted properly the check and control and paid the negotiable instrument in accordance with the provisions of this Law.
5. The drawee or issuer shall be obliged to compensate the beneficiary for damage and loss if the drawee or issuer paid the negotiable instrument after receipt of notice of loss of the negotiable instrument.
Accordingly, where a negotiable instrument is lost, the beneficiary must immediately notify in writing the drawee, the drawer or the issuer.
The beneficiary must notify clearly the circumstances in which the negotiable instrument was lost and shall be responsible before the law for the truthfulness of such notice. The beneficiary may notify the loss of the negotiable instrument by telephone and other direct methods if so agreed by the parties.
Where the person who is not the beneficiary loses a negotiable instrument, he or she must immediately notify the beneficiary.
Vietnam: What should a beneficiary do when the negotiable instrument is lost? If the person who is not the beneficiary loses a negotiable instrument, what should he/she do?
If the person who is not the beneficiary loses a negotiable instrument in Vietnam, what should he/she do?
Pursuant to the provisions of Clause 1, Article 13 of the Law on Negotiable Instrument 2005 as follows:
Loss of negotiable instruments
1. Where a negotiable instrument is lost, the beneficiary must immediately notify in writing the drawee, the drawer or the issuer. The beneficiary must notify clearly the circumstances in which the negotiable instrument was lost and shall be responsible before the law for the truthfulness of such notice. The beneficiary may notify the loss of the negotiable instrument by telephone and other direct methods if so agreed by the parties.
Where the person who is not the beneficiary loses a negotiable instrument, he or she must immediately notify the beneficiary.
2. Where a negotiable instrument is lost prior to its maturity for payment, the beneficiary shall be entitled to request the drawer or issuer to re-issue a substitute negotiable instrument with the same contents as the lost negotiable instrument after the beneficiary has notified the loss of the negotiable instrument and made a written undertaking to make payment on behalf of the drawee or issuer if the negotiable instrument which has been notified as lost is presented by a lawful beneficiary for payment.
3. Upon receipt of notice of loss of a negotiable instrument in accordance with clause 1 of this article, the issuer and the drawee shall not be allowed to pay such negotiable instrument. The check and control of negotiable instruments which have been notified as lost shall be subject to regulations of the State Bank of Vietnam.
4. Where a lost negotiable instrument is misused for payment before the drawee or the issuer receives notice of loss of the negotiable instrument, the drawee or issuer shall be relieved from his or her responsibility if he or she has conducted properly the check and control and paid the negotiable instrument in accordance with the provisions of this Law.
5. The drawee or issuer shall be obliged to compensate the beneficiary for damage and loss if the drawee or issuer paid the negotiable instrument after receipt of notice of loss of the negotiable instrument.
Thus, according to the above provisions, where the person who is not the beneficiary loses a negotiable instrument in Vietnam, he or she must immediately notify the beneficiary.
Is forging the signature on a negotiable instrument considered a prohibited act in Vietnam?
Pursuant to Clause 3, Article 15 of the Law on Negotiable Instrument 2005 stipulates as follows:
Acts which are prohibited
1. Forging a negotiable instrument, amending or erasing items on a negotiable instrument.
2. Deliberately assigning or accepting assignment [of a negotiable instrument], or presenting for payment a negotiable instrument which was forged, amended or the items of which were erased.
3. Signing a negotiable instrument without authorization or forging the signature on a negotiable instrument.
4. Deliberately assigning a negotiable instrument when aware that the period for payment of such negotiable instrument has expired or such negotiable instrument was dishonoured by non-acceptance or by non-payment or has been notified as lost.
5. Deliberately drawing a negotiable instrument without the ability to pay it.
6. Deliberately drawing a cheque after the right to draw cheques has been stopped.
According to the above provisions, prohibited acts include signing a negotiable instrument without authorization or forging the signature on a negotiable instrument.
Thus, the act of forging the signature on a negotiable instrument is one of the prohibited cases.
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