Creating a bill of exchange endorsement that aligns with the UCC (Uniform Commercial Code) in the United States and the Australian Bill of Exchange Act 1909 involves specific terminology and a clear structure. Below is a simplified example of how such an endorsement might look.
Sample Bill of Exchange and Endorsement
Bill of Exchange (Front)
Date: [Date of Issue]
Payable To:
[Name of Payee]
[Address of Payee]
Amount
[Amount in words] (e.g., One Thousand Dollars)
$1,000.00
Wording
“Pay to the order of [Name of Payee]
on or before [Due Date].
This bill is issued in accordance with the UCC and the Australian Bill of Exchange Act 1909.”
Signature of Drawer
__
[Your Name]
[Your Address]
—
Endorsement (Back)
“Pay to the order of [New Payee Name]
[New Payee Address]
[Your Signature]
[Your Printed Name]
[Date]
—
Explanation
1. Date: Date the bill is issued.
2. Payable To: The name and address of the payee — the person or entity receiving the payment.
3. Amount: Clearly state the amount in both words and numbers.
4. Wording: A clause stating the bill’s compliance with UCC and relevant Australian law.
5. Signature of Drawer: Signature of the person issuing the bill.
6. Endorsement: This section is for transferring the bill to another party. It includes:
– Pay to: The name of the new payee who will receive the funds.
– Without recourse: Indicates that the endorser is not responsible for payment if the bill is not honored.
– Signature: The original signer endorsing the bill.
