bill of exchange


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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 ?
t the payment is made and towards those who are liable to latter person under the bill of exchange.
Nevertheless, the payer shall not re-endorse the bill of exchange and the subsequent endorsers to the person in whose favour the payment is made shall be released.
If several persons compete for payment by intervention, the preference shall be granted to the person whose payment would discharge the liability of the maximum number of obligors under bill of exchange.
In some specialized work is deemed that the treat and the bill of exchange are two different instruments, the bill of exchange is in this sense "a negotiable credit title, and while a payment instrument, .
Another distinction between the bill of exchange and the promissory note refers to the quality of the debtor's signature.
In the case of filing an application for review or any other reason, the provider must, on demand subscriber to extend the period of validity of the bill by bill of exchange statement on the severity of the application.
Deposits and Guarantees required: The tenderer shall as a tender guarantee enclose your own certificate (signed) with a mandate to fulfill and use and bill of exchange statement (OBR-7).