Accepted for Value and the Bills of Exchange Act (UCC)
2 years, 2 months ago-
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I’ve been researching this topic because I’m in a situation where our family’s earnings have been severely limited recently due to several external and internal factors, and I’ve got a few credit cards that are going to have to be dealt with one way or another. When reading the Bills of Exchange Act, it appears to indicate that a corporation cannot lawfully send a bill to a living person (hence the use of the various legal fictions) and that the consequence (remedy) if they do is that the bill is paid (or discharged) by them, as long as we know what to do to make them do that, which as far as I comprehend, is the accepted for value process.
Most information out there about a4v is based on US information, so doesn’t help with the specifics of the exact process in Canada, and specifically for corporate (credit) bills (a lot of the info appears to be about IRS related remittance) but because the laws are essentially the same (UCC & BoE) there is still pertinent information if you can re-interpret it through our law.
The gist of what is happening as far as I understand is this: every time a corporation send you a bill, they have to create an account with the amount of the bill in it as a credit. If you pay with debt money then it gets settled, but because they had to create the credit, you can accept the bill as a note by qualified endorsement and instruct them to apply that credit to your account instead. What you’re doing is similar to a bank issuing credit as debt and then immediately writing it off, except those steps aren’t necessary as the creditor.
I have not done my BC perfection yet, having just discovered this group, but from what I understand it is not strictly necessary for corporate a4v until there is some kind of court action where you’d have to prove your lawful / political status in order to assert your rights as the creditor.
If anybody has any additional information or experience using a4v, please share! I am attempting to gather as much info as possible before I proceed so I have the best chance of success, but I will report on any failures as the case may be so others can learn too…
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Well, I haven’t been able to dig up much more solid information and nobody has chimed in, obviously there is a lot more out there, especially for up to date and confirmed working methods, but of course people usually want to charge money to access that information and I’ve procrastinated long enough… Based on what I posted, I’ve mocked up what sort of stuff I would print and sign on the bill to accept it for value (other than the reverse of the coupon that also gets signed). I’ve looked up the address and name of the CFO for Vancity Savings, whom I presume would oversee their Visa card division.
If anyone knows anything at all about this or anything similar, please chime in!
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