Legal Definitions - presentment

Presentment refers to the formal act of submitting something for consideration or action, typically either a demand for payment on a financial instrument or a formal accusation made by a grand jury.

• 1. In Commercial Law: Presentment is a formal demand for payment or acceptance of a financial instrument, such as a check, promissory note, or draft, made to the party obligated to pay it.

  • Example: A small business lent money to a supplier, documented by a promissory note specifying repayment on a certain date. On that due date, the small business sends a formal letter to the supplier, explicitly demanding the repayment of the principal and any accrued interest as per the note's terms.

    Explanation: This is a direct presentment, a formal demand for payment of a financial obligation (the promissory note) made to the party legally bound to fulfill it.

  • Example: When you deposit a check from a friend into your bank account, your bank then initiates a presentment to your friend's bank, formally requesting that the funds be transferred from your friend's account to yours to cover the check.

    Explanation: This illustrates presentment as the formal request made by one bank (on your behalf) to another bank (your friend's bank) for the payment of the check.

• 2. In Criminal Procedure (Grand Jury): Presentment is a formal written accusation issued by a grand jury on its own initiative, without a prosecutor's direct request or presentation of evidence for that specific charge. It often highlights wrongdoing by public officials or systemic issues.

  • Example: A grand jury, while investigating a local government's handling of public contracts, uncovers evidence suggesting a city council member used their position to steer contracts to a company owned by a family member. The grand jury then issues a presentment to the court, detailing these findings and recommending an investigation into the council member for ethics violations, even though the prosecutor had not initially sought an indictment on that specific matter.

    Explanation: This demonstrates a grand jury acting independently to bring a formal accusation of misconduct to the court's attention, based on their own findings during an investigation.

  • Example: Following a series of public health crises, a grand jury conducts an inquiry into the effectiveness of the state's environmental protection agency. They conclude that the agency's oversight mechanisms are severely lacking and issue a presentment outlining systemic failures and recommending legislative changes to improve public safety, rather than indicting specific individuals.

    Explanation: Here, the presentment serves as a formal report from the grand jury to the court, highlighting broader issues and recommending action, initiated by the grand jury itself without a specific prosecutorial request for an indictment.