Vietnam: Rights of a beneficiary of the bill of exchange

Nguyen Trinh

10:40, 19/12/2010

The Law on negotiable instruments 2005 of Vietnam was promulgated on November 29, 2005, of which one of the fundamental contents is the regulation on rights of a beneficiary of the bill of exchange.

Specifically, according to Article 41 of the Law on negotiable instruments 2005 of Vietnam, the payee holding a bill of exchange shall have the following rights:

- To present the bill of exchange for acceptance or for payment when the bill of exchange matures;

- To request payment by related persons upon maturity;

- To endorse the bill of exchange in accordance with this Law;

- To deliver the bill of exchange for pledge or for collection;

- To have recourse or initiate legal action in relation to the bill of exchange.

The rights of the beneficiary holding a bill of exchange shall still be secured even though the related persons previously held illegally the bill of exchange.

Besides, the law also stipulates that the period for payment of a bill of exchange shall be recorded in accordance with one of the following periods:

- The date of presentation;

- Within a certain period from the date of acceptance of the bill of exchange;

- Within a certain period from the date of issuance of the bill of exchange;

- Upon a specific fixed date.

A bill of exchange which states more than one payment period or states a payment period other than those stipulated above shall be invalid.

View more at: The Law on negotiable instruments 2005 of Vietnam takes effect from July 01, 2006.

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