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Promissory Notes

PROMISSORY NOTES

Bill of Exchange Act 1909 (Cth) s89 (1) .“A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to or to the order of a specified person, or to bearer” 

(CTH) STATUTE SUPPORTING PROMISSORY NOTES Banking Act 1959 s 39 (8) (8) In this section: Australian currency includes notes, coins, postal notes, money orders, bills of exchange, promissory notes, drafts, letters of credit and travellers’ cheques payable or expressed in Australian money, and also includes rights, and instruments of title, to Australian money.The Currency Act 1965 s8 8 Monetary unit and denominations of money (1) The monetary unit, or unit of currency, of Australia is the dollar. (2) The denominations of money in the currency of Australia are the dollar and the cent.The Currency Act 1965 s9 9 Transactions to be in Australian currency (1) Subject to this section, every sale, every bill of exchange or promissory note, every security for money, and every other contract, agreement, deed, instrument, transaction, dealing, matter or thing relating to money, or involving the payment of, or a liability to pay, money, that is made, executed, entered into or done, shall, unless it is made, executed, entered into or done according to the currency of some country other than Australia, be made, executed, entered into or done according to the currency of Australia provided for by this Act. A New Tax System (Goods and Services Tax) Act 1999No. 55, 1999 as amended Compilation start date: 1 March 2013 Part 6‐3—Dictionary Division 195—Dictionary 195‐1 Dictionary money includes:(a) currency (whether of Australia or of any other country); and(b) promissory notes and bills of exchange; and(c) any negotiable instrument used or circulated, or intended for use or circulation, as currency (whether of Australia or of any other country); and (d) postal notes and money orders; and .... TAXATION ADMINISTRATION REGULATIONS 1976 18 Payment of tax related liabilities (1) A person who pays a tax- related liability must pay the liability in Australiancurrency (BOE or PN!). (2) The person must pay the tax related liability using a method approved by the Commissioner and in accordance with any instructions provided by the Commissioner BOE or PN approved because NOT expressly prohibited). (3) The person must pay the amount of the tax related liability in a single payment unless the Commissioner agrees that the person may make more than 1 payment. (BOE or PN is one payment & qualifies!) Bill of Exchange Act 1909 (Cth) s89 (1)

“A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to or to the order of a specified person, or to bearer” 


Banking Act 1959 s 39 (8)

  (8)  In this section:Australian currency includes notes, coins, postal notes, money orders, bills of exchangepromissory notes, drafts, letters of credit and travellers’ cheques payable or expressed in Australian money, and also includes rights, and instruments of title, to Australian money.

The Currency Act 1965 s88  Monetary unit and denominations of money

The monetary unit, or unit of currency, of Australia is the dollar.The denominations of money in the currency of Australia are the dollar and the cent.

9 Transactions to be in Australian currency    (1)  Subject to this section, every sale, every bill of exchange or promissory note, every security for money, and every other contract, agreement, deed, instrument, transaction, dealing, matter or thing relating to money, or involving the payment of, or a liability to pay, money, that is made, executed, entered into or done, shall, unless it is made, executed, entered into or done according to the currency of some country other than Australia, be made, executed, entered into or done according to the currency of Australia provided for by this Act.A New Tax System (Goods and Services Tax) Act 1999No. 55, 1999 as amendedCompilation start date: 1 March 2013Part 6 3—DictionaryDivision 195—Dictionary195 1  Dictionary money includes:(a) currency (whether of Australia or of any other country); and(b) promissory notes and bills of exchange; and(c)  any negotiable instrument used or circulated, or intended for use orcirculation, as currency (whether of Australia or of any other country); and(d)  postal notes and money orders; and ….TAXATION ADMINISTRATION REGULATIONS 197618  Payment of tax related liabilities

A person who pays a tax related liability must pay the liability in Australian currency (BOE or PN!).The person must pay the tax related liability using a method approved by the Commissioner and in accordance with any instructions provided by the Commissioner BOE or PN approved because NOT expressly prohibited).The person must pay the amount of the tax related liability in a single payment unless the Commissioner agrees that the person may make more than 1 payment. (BOE or PN is one payment & qualifies!)

"We have repeatedly said in this court that a bill of exchange or a promissory note is to be treated as cash.It is to be honoured unless there is some good reason to the contrary"Lord Denning MR, Davies, Widgery LJJ in “Fielding & Platt Ltd v Selim Najjar; CA 17 Jan 1969” 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA)‘The principle is that a bill, cheque or note is given and taken inpayment as so much cash, and not as merely given a right of action for the creditor to litigate a counterclaim’ (see Jackson v Murphy [1887] 4 T.L.R. 92).“A promissory note does NOT pay a debt (ONLY DISCHARGES a liability!). It does suspend ALL further action”. Supreme Court of Appeal NSW 2006

CASE LAW SUPPORTING PROMISSORY NOTES 

"We have repeatedly said in this court that a bill of exchange or a promissory note is to be treated as cash. It is to be honoured unless there is some good reason to the contrary" Lord Denning MR, Davies, Widgery LJJ in “Fielding & Platt Ltd v Selim Najjar; CA 17 Jan 1969”1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA) ‘The principle is that a bill, cheque or note is given and taken in payment as so much cash, and not as merely given a right of action for the creditor to litigate a counterclaim’ (see Jackson v Murphy [1887] 4 T.L.R. 92). “A promissory note does NOT pay a debt (ONLY DISCHARGES a liability!). It does suspend ALL further action”. Supreme Court of Appeal NSW 2006 

A New Tax System (Goods and Services Tax) Act 1999 

Commonwealth Consolidated Acts A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 195.1 Dictionary In this Act, except so far as the contrary intention appears: "money" includes:(a) currency (whether of Australia or of any other country); and (b) promissory notes and bills of exchange; and(c) any negotiable instrument used or circulated, or intended for use or circulation, as currency (whether of Australia or of any other country); and (d) postal notes and money orders; and(e) whatever is supplied as payment by way of: (i) credit card or debit card; or(ii) crediting or debiting an account; or (iii) creation or transfer of a debt. However, it does not include:

(f)  a collector's piece; or(g)  an investment article; or(h)  an item of numismatic interest; or(i)  currency the market value of which exceeds its stated value as legal tender in the country of issue. 

Uniform Commercial Code  U.C.C. - ARTICLE 3 - NEGOTIABLE INSTRUMENTS (2002)  PART 6. DISCHARGE AND PAYMENT § 3-603. TENDER OF PAYMENT. 

(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. (c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument. 
http://www.law.cornell.edu/ucc/3/3-603 

NOTICE OF ACKNOWLEDGEMENT OF ABANDONMENT OF RIGHT