Bill of exchange: Difference between revisions
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* [[Acceptance]] | * [[Acceptance]] | ||
* [[Acceptance credit]] | * [[Acceptance credit]] | ||
* [[Accommodation finance]] | |||
* [[Aval]] | * [[Aval]] | ||
* [[Banker's acceptance]] | * [[Banker's acceptance]] |
Revision as of 10:30, 18 February 2017
(BE).
Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit.
The formal legal definition of a bill of exchange is as follows:
An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to order or to bearer.
Expressing this in less formal language, it is a written order from one party (the drawer) to another (the drawee) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer.
See also
- Acceptance
- Acceptance credit
- Accommodation finance
- Aval
- Banker's acceptance
- Bank payment obligation
- Bill discounting
- Certificate of deposit
- Cheque
- Clean draft
- Eligible bill
- Forfaiting
- Holder in due course
- Lettre de change relevé
- Negotiable instrument
- Promissory note
- Recourse
- Payments and payment systems