Bill of Credit


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Bill of Credit

1. A bill issued by a government that may be traded as money and may be redeemed by the holder for actual money on a given day.

2. A request for payment by a third party. For example, if one writes a check to a seller, the seller demands payment from the bank out of the funds it holds on behalf of the buyer. In this case, the check is a bill of credit.
References in periodicals archive ?
252) Wilson and Roger Sherman proposed moving state bill of credit emissions and tender laws from the list of powers that states could exercise conditionally on consent of Congress to the list of powers that states could not exercise at all.
4 COMYNS, infra note 344, at 239 ("A Bill of Credit is, when a Merchant sends a Letter by a Servant, or Agent to another Merchant, within the Realm, or in foreign Parts, whereby he desires him to give Credit to the Bearer for Goods or Money, to such a Value.
at 295 (reproducing a 1780 Rhode Island bill of credit redeemable in Spanish milled dollars on Dec.