bill of exchange


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.
Related to bill of exchange: bill of lading, letter of credit, promissory note

Bill of exchange

General term for a document demanding payment.

Bill of Exchange

A document requiring payment by one party to another for a good or service the party demanding payment provided. See also: Receipt.

bill of exchange

a FINANCIAL SECURITY which is used to extend business CREDIT for a limited time period. The lender draws up a bill of exchange for a specified sum of money payable at a given future date, usually three months hence, and the borrower signifies his agreement to pay the amount involved by signing (i.e. accepting) the bill. In addition, a borrower will often arrange for a bill to be guaranteed by an ACCEPTING HOUSE, which in return for a fee will agree to repay the debt should the borrower be unable to do so. Most bills are in fact ‘discounted’ (i.e. bought from the drawer) by a DISCOUNT HOUSE for an amount less than the face value of the bill (the difference between the two sums being the interest charged). The bill may then be held until maturity or sold at a lower price (‘rediscounted’) to another discount house, or, more commonly, on-sold to the COMMERCIAL BANKS. See DISCOUNT, DISCOUNT MARKET, REDISCOUNTING, INTEREST RATE.

bill of exchange

a FINANCIAL SECURITY representing an amount of CREDIT extended by one business to another for a short period of time (usually three months). The lender draws up a bill of exchange for a specified sum of money payable at a given future date, and the borrower signifies his agreement to pay the amount indicated by signing (accepting) the bill. Most bills are

‘discounted’ (i.e. bought from the drawer) by the DISCOUNT MARKET for an amount less than the face value of the bill (the difference between the two constitutes the interest charged). Bills are frequently purchased by the COMMERCIAL BANKS to be held as part of their RESERVE ASSET RATIO. See DISCOUNT, ACCEPTING HOUSE, DISCOUNT HOUSE.

References in periodicals archive ?
Acceptance by intervention shall be recorded on the bill of exchange and shall be signed by the intervening person along with the name of the person in whose bene?
Thus, if the payer signature as the main cambial obliged appears on the promissory note from the beginning of issue, the payer signature does not appear on the bill of exchange in the moment of issuing the title, it being able not to appear at all materialized on the title specially in that cambial process.
He even says that it happened to him to go to the bank to collect some money they had sent him in a bill of exchange from another place and the banker refused to pay him without charging the six per thousand, and since all his arguments were useless to convince him, he was not able to rightly receive the money.
In particular, care must be taken over wording if the bill of exchange includes an interest payment in addition to the invoice sum.
Deposits and Guarantees required: Insurance Tender - bill with a bill of exchange statement.
The tenderer shall as a kind of collateral for bid submitted blank bill of exchange bill of exchange with the declaration of 2 000 EUR valid until 07/31/2015.
Deposits and Guarantees required: Insurance Tender - bill of exchange bill of exchange with the declaration of 8 000 EUR.
Deposits and Guarantees required: The successful tenderer will be required as guarantee for the proper performance of its contractual obligations to submit a bill by bill of exchange statement in the amount of 10% of the tendered value of the VAT but not less than EUR 500 (five hundred euros) valid for the entire period of the contract, extended by one day.