Examples of letters

1. Drawer to a drawee concerning draft to order.

Dear Sir,

I am advising you that I have drawn on you this day for £ 220.45 at 2 m/d o/ol Messrs Mitchell Beer & Bros in your city.

I shall be glad if you would note this and honour it on presentation².

Yours faitlilully,

2. Reply to tlie above — acknowledgement by the drawee.

Dear Sir,

We have received your letter of... in which you advise us of your draft for £ 220.45 at 2 m/d» o/o Messrs Mitchell Beer & Bros in this city.

Your draft shall find due protection⁸ when presented.

Yours faithfully.

Words and expressions

1. o/o = order of — приказу кого-либо

2. honour it on presentation — уплатите по предъявлении

3. draft shall find due protection — вексель будет оплачен

The next type of financial documents is the cheque. Cheques (USA: «checks») are subdivided into:

— cheques to bearer or bearer cheques¹

— cheques to order or order cheques²

— crossed cheques³

A cheque is an order in writing issued! by the drawer (account-holder) to the drawee—who is usually a banker— for the payment on demand of money deposited with him to the bearer or to a named person (payee).

For example:

Every depositor⁴ receives on request a cheque-book with forms consecutively⁵ numbered. The two parts of a cheque are the counterfoil⁶ and the cheque proper. By cheque we may withdraw sums or they are used for transfers.

The bearer Cheque may be passed oil from firm to firm without eny further remarks.

The order cheque is handed on to a new payee by way; of endorsement.

An endorsement in blank⁷ consists merely of the name of the party transferring the paper. Its effect is to order the paper to be paid lo bearer. The endorser becomes-responsible for it to whom he tranters it. that is, he agrees to redeem⁸ it if the drawer does not.

All endorsement in full⁹ runs as follows:

Pay to the order of the Merchants' Exchange Bank.

D. B. Jones.

There are also restrictive endorsements, conditional endorsements and endorsements without recourse¹⁰ (Pay to Mr. Martin without recourse to me).

A cheque is usually payable at sight, so that there is of course no date of maturity mentioned.

By crossing¹¹ a cheque one makes it payable to a bank only. If somebody gives a bank his cheque, he has to endorse it to the bank who will collect¹² it for him. There are two forms of crossing: thee general crossed cheque and the specially crossed cheque.

General crossing consists in drawing two parallel lines across the face of the cheque with the words «and Company> or «not negotiable»¹³ between them. Two parallel lines without these words also constitute a crossing:

When the name of a bank is written across the face of a cheque either with or without the words «not negotiable», this constitutes a special crossing which directs the bank on which the cheque is drawn to pay the amount of the cheque to the payee's account at the bank indicated in uie crossing.

NOTES

1. bearer cheque	— чек на предъявителя
2. order cheque	— ордерный чек
3. crossed cheque	— кроссированный чек
4. depositor n	— вкладчик
5. consecutively adj	— последовательно
6. counterfoil n	— корешок чека /
7. endorsement In blank	— бланковый индоссамент
(blank endorsement)
8. to redeem v	— зд. выкупать, оплачивать
9. endorsement In full	— полный (именной) индоссамент
10. restrictive endorsement	— ограниченный индоссамент
11. conditional endorsement	— обусловленный индоссамент
12. endorsement without	— индоссамент «без обращения» к кому-либо
recourse
13. to cross v	— зд. кроссировать чек
14. to collects	— зд. инкассировать
15. not negotiable	— не подлежит передаче