Bill of exchange: Difference between revisions
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Bills of exchange are widely used to finance trade and, when discounted with a financial institution, to obtain credit. | 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 | |||
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. | 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 == | == See also == | ||
* [[Acceptance]] | * [[Acceptance]] | ||
* [[Acceptance credit]] | * [[Acceptance credit]] | ||
* [[Acceptor]] | |||
* [[Accommodation finance]] | |||
* [[Aval]] | * [[Aval]] | ||
* [[Banker's acceptance]] | * [[Banker's acceptance]] | ||
* [[Bank payment obligation]] | * [[Bank payment obligation]] | ||
* [[Bill discounting]] | |||
* [[Certificate of deposit]] | * [[Certificate of deposit]] | ||
* [[Cheque]] | |||
* [[Clean draft]] | * [[Clean draft]] | ||
* [[Eligible bill]] | * [[Eligible bill]] | ||
| Line 20: | Line 29: | ||
* [[Lettre de change relevé]] | * [[Lettre de change relevé]] | ||
* [[Negotiable instrument]] | * [[Negotiable instrument]] | ||
* [[Payments and payment systems]] | |||
* [[Promissory note]] | * [[Promissory note]] | ||
* [[Recourse]] | * [[Recourse]] | ||
[[Category:Corporate_finance]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Trade_finance]] | |||
Latest revision as of 19:13, 20 October 2022
(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
- Acceptor
- 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
- Payments and payment systems
- Promissory note
- Recourse
