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    Maturity Date: The Maturity of A Bill of A Exchange or A Promissory Note Is The Date at Which It

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    Akash
    The document discusses maturity dates for bills of exchange and promissory notes. It states that no grace period applies for checks, sight bills, or demand notes. For installment notes, each installment gets a 3-day grace period. Bills are due on the stated day plus 3 days of grace. If the due date falls on a weekend or holiday, it is pushed to the next business day. The examples provided calculate maturity dates for various bills, such as one drawn on June 1, 2005 that is payable 120 days later having a maturity date of October 2nd.

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    Maturity Date: The Maturity of A Bill of A Exchange or A Promissory Note Is The Date at Which It

    Uploaded by

    Akash
    44 views2 pages
    The document discusses maturity dates for bills of exchange and promissory notes. It states that no grace period applies for checks, sight bills, or demand notes. For installment notes, each installment gets a 3-day grace period. Bills are due on the stated day plus 3 days of grace. If the due date falls on a weekend or holiday, it is pushed to the next business day. The examples provided calculate maturity dates for various bills, such as one drawn on June 1, 2005 that is payable 120 days later having a maturity date of October 2nd.

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    grace period

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    The document discusses maturity dates for bills of exchange and promissory notes. It states that no grace period applies for checks, sight bills, or demand notes. For installment notes, each installment gets a 3-day grace period. Bills are due on the stated day plus 3 days of grace. If the due date falls on a weekend or holiday, it is pushed to the next business day. The examples provided calculate maturity dates for various bills, such as one drawn on June 1, 2005 that is payable 120 days later having a maturity date of October 2nd.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    44 views2 pages

    Maturity Date: The Maturity of A Bill of A Exchange or A Promissory Note Is The Date at Which It

    Uploaded by

    Akash
    The document discusses maturity dates for bills of exchange and promissory notes. It states that no grace period applies for checks, sight bills, or demand notes. For installment notes, each installment gets a 3-day grace period. Bills are due on the stated day plus 3 days of grace. If the due date falls on a weekend or holiday, it is pushed to the next business day. The examples provided calculate maturity dates for various bills, such as one drawn on June 1, 2005 that is payable 120 days later having a maturity date of October 2nd.

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    © All Rights Reserved
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    of 2

    Bill of Exchange / Promissory Note Payable

    Maturity Date: The maturity of a bill of a exchange or a promissory note is the date at which it
    falls due.
    No grace period is applicable for
    1. A cheque
    2.A bill or notes payable “at sight” or “on presentment” or “on demand”
    3. Where an instrument payble on installment, each installment is entitled to three days of grace.
    Calculation of days of maturity:
    1) Where a negotiable instrument is payable on a stated number of days after date, it shall become
    payable on that specified day plus 3 days of grace
    2) Where a negotiable instrument is payable on a stated number of days after date or after sight or
    after happening of a certain event then it shall become payable on
    a) the date on which negotiable instrument is drawn
    b) the date on which negotiable instrument is drawn
    c) the date on which the negotiable instrument is presented for sight
    d) the date on which the event happens
    plus stated number of days plus 3 days of grace
    3) Where a negotiable instrument is payable on a stated number of months after date or after sight
    or after happening of a certain event then it shall become payable on
    a) the corresponding day of the relevant month on which negotiable instrument is drawn
    b) the corresponding day of the relevant month ( date on which the negotiable instrument is
    presented for sight) or
    c) the corresponding day of the relevant month ( date on which the event happens)
    if the month in which the period would terminate has no corresponding day , the period terminates
    on the last day of such month
    4) when the last day of grace falls on a day which is a public holiday , the instrument is due and
    payable on the preceding business day. If the day of maturity is an emergency ir unforeseen holiday
    then the maturity date will be shifted to the succeeding business day.

    Practice:
    1.A bill of exchange dated 31st august ,2007 is made payable three months after date
    Bill of Exchange / Promissory Note Payable

    2.A bill of exchange drawn on 15th October, 2007 is payable twenty days after sight and the bill is
    presented for acceptance on 31st October,2007.
    3. In What way does the negotiable instrumrnts act,1881 regulate the determination I the “Date of
    maturity” if a bill of exchange. Ascertain the “Date of Maturity” of a bill of Exchange payable 120
    days after the date.the bill of exchange was drawn on 1st June, 2005.
    Answer:
    1.(ans 3rd December)
    2. (Ans.23 november 2007)
    3. (Ans 2nd October)

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