bill of exchange

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Related to bills of exchange: 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 ?
Bills of exchange are used to a very limited degree today.
As the private banking system was developed, it became less common to discount bills of exchange directly in Norges Bank.
The purpose of this practice of carrying out the exchanges between the Castilian fairs and those of Flanders is allowing only three months for the payment, which is the period of time until the next Flemish fair, and is considered sufficient to send the bills of exchange from Castile.
The above should not be interpreted as if money in cash could not be taken for the exchanges at the beginning of the fair and during the year even if there were a need to do it; or as if the bills of exchange that have been sent in which a payment is ordered on a certain day, or as soon as they are handed over, cannot be paid at that moment and had to wait until the exchanges are open and the tables set up.
He then receives bills of exchange for which an amount of money is given to him over there that is equal to the amount he gave or what he did over here.
subsidiaries or the bills of exchange issued by the Taiwanese parent.
three (3) bills of exchange bill of exchange with the statement and authorization to liquidate or cash deposit in the amount of 3% of the estimated value of EUR excluding VAT alert for assembly by the customer will be realized in the following cases
Deposits and Guarantees required: A signed bills of exchange with a mandate to fulfill in the amount of 20 000 and validity of the deadline for submission of bids until the expiry of the contractual obligations.
Payments under the contract shall be made in cash, and therefore have some form of payment, is not contrary to the legislation of the Russian Federation, including through the transfer of bills of Exchange, etc.
The tenderer shall after the signing of the framework agreement the contracting authority give as security for the performance of contractual obligations 3 bills of exchange bill of exchange with the statement in the amount of 10% of the value of the framework agreement (including VAT) with effect 15 days after the expiry of the Framework Agreement.
guarantee for the protection of good faith or bills of exchange, bank guarantee for performance of contractual obligations or.
2014, and a statement by the tenderer to the signing of the Framework Agreement by three (3) bills of exchange bill of exchange with the statement in the amount of 10% of the value of the contract for performance of contractual obligations with effect fifteen (15) days after the expiry of the agreement.