The procedure for bill acceptance includes three steps: presentation for acceptance, acceptance or refusal of acceptance, and return of the bill.
(1) Presentation for acceptance. Presentation for acceptance refers to the act of the holder of a bill presenting the bill to the payee before the due date of the bill and requesting the payee to indicate on the bill that he is willing to pay the amount of the bill on the due date. Presentation for acceptance has two purposes: one is to show the payee that the holder actually possesses the bill and that the other party is the payee as recorded in the bill, and the other is to request the payee to promise to pay the amount of the bill on the due date.
(2) Acceptance or refusal of acceptance. After the holder presents the bill to the payee for acceptance at the above time, the payee shall also make a decision to accept or refuse acceptance within the prescribed time. If the payee decides to accept, the acceptance shall be completed within the prescribed time and in the prescribed format. If the payee decides to accept the bill, the payee must record the acceptance words on the front of the bill, such as “accept”, “pay as required”, “redeem”, etc., and sign and seal. When the signature and the payee recorded on the bill of exchange appear to be different in appearance but are actually the same person, the signature is still valid. When the payee accepts, it is usually recorded on the front of the bill of exchange. If the payee only signs on the front of the bill of exchange without recording the words “acceptance”, it is also deemed as acceptance according to the Geneva Uniform Bills of Exchange Law and the bill of exchange laws of most countries, but at this time it is limited to the front of the bill of exchange to avoid confusion with endorsement. Regarding the recording of the acceptance date, conventions and the bill of exchange laws of most countries stipulate that it is a relatively necessary item to record.
(3) Return of the bill of exchange. After the payee receives the bill of exchange presented for acceptance by the holder, he takes possession of the bill of exchange and shall return the bill to the holder after he accepts or refuses to accept it. However, before returning the bill of exchange, the payee may cancel his acceptance to make it ineffective. Once the payee accepts and returns the bill of exchange, the acceptance procedure of the bill of exchange is completed and the acceptance becomes effective. The acceptor will assume the unconditional obligation to pay the amount of the bill as the principal debtor of the bill of exchange.