Date: Sun, 01 Jan 2017 23:26:29 +1100
Subject: Freedom of Information request - Promissory Notes
From: Troy Dimitrov <[FOI #2892 email]>
To: FOI requests at Treasury <[Treasury request email]>

Dear Department of the Treasury,

Are banks legally bound to take my promissory note?

What is the treasuries position on using promissory notes?

Lord denning stated
"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" (see per Lord Denning M.R. in Fielding & Platt Ltd v Selim Najjar [1969] 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA)
Another of Lord denning’s rulings stated that a bill of exchange once tendered has to be treated as cash.
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).
First of all it is important to remember that the Bills of Exchange Act 1882 (and many Statutes subsequently) consider a Promissory Note to be the same thing as "cash".

Is this somehow not enforced in Australia?

Yours faithfully,

Troy Dimitrov

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