Hi all,
I know roughly the basics of a bill of exchange/draft but the use and value of it depends on the law and customs in the country where it is used. I am thinking about using it as a coverance for a granted loan, by accepting a number of (every quota = one letra) letras which should be paid every month. Can this be used for such thing? Is this in accordance with the law? Is it common or wide accepted and used in the DR? Can it be protested in case of non payment? Can it be "avalisado" by one or more natural persons? When it is drawn on a company but avalisado by natural person(s) what happens when the company goes broke? I suppose the natural person(s) can be hold to pay as they signed in solidarity? In the old days before the computer showed up a protested non payment was listed in "the official state journal" and most debitors did not like this as all financial institutions take knowledge of this and put them on their black lists. Is there also someting simular in the DR?
Who can share his experience or know how about this?
Peet
I know roughly the basics of a bill of exchange/draft but the use and value of it depends on the law and customs in the country where it is used. I am thinking about using it as a coverance for a granted loan, by accepting a number of (every quota = one letra) letras which should be paid every month. Can this be used for such thing? Is this in accordance with the law? Is it common or wide accepted and used in the DR? Can it be protested in case of non payment? Can it be "avalisado" by one or more natural persons? When it is drawn on a company but avalisado by natural person(s) what happens when the company goes broke? I suppose the natural person(s) can be hold to pay as they signed in solidarity? In the old days before the computer showed up a protested non payment was listed in "the official state journal" and most debitors did not like this as all financial institutions take knowledge of this and put them on their black lists. Is there also someting simular in the DR?
Who can share his experience or know how about this?
Peet