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How to get a 'letter of good standing' from a UK bank?

In message , Ronald Raygun writes

Rubbish. What about undated government stock? or an interest only mortgage? or an undated debenture?

But it wouldnt be negotiable and any subsequent holder could not obtain any of the protection available under the BoE Act.

It is not the promise per se that is the point, It is that the existence of the promise that makes the promissory note negotiable, together with the other features contained in S83, that make it negotiable. The main features needed are , unconditional, signed, payable at a fixed or determinable future date, a sum certain, to a specified person or to bearer. These features make the note negotiable. Your IOU, is not. (luckily).

Reply to
John Boyle
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What *about* it?

With an interest-only mortgage, the borrower formally undertakes to repay the loan by a certain date. Undated govt stock is a little different, but certainly similar. They undertake to repay the loan if and when they like, or to pay interest on it forever, which two options are broadly equivalent.

That's hardly surprising since even the first holder has no protection under the BoE Act in connection with a million quid IOU issued by little old me.

IOUs have their own rules, though, which are not necessarily better but can be pretty effective. The "negotiations" associated with them tend to involve unorthodox methods, like threats to break legs.

Reply to
Ronald Raygun

In message , Ronald Raygun writes

But if your dodgy IOU was a promissory note, subsequent holders would have a right of action against the first holder.

:-)

Reply to
John Boyle

It would need to be a Promissory Note, not a mere promissory note. :-)

Reply to
Ronald Raygun

In message , Ronald Raygun writes

:-), but actually no.....

"s83 - (1) A promissory note is an ........."

Reply to
John Boyle

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