bill of exchange

bill of exchange
Fin
an unconditional order in writing from one person (the drawer) to another (the drawee and signatory), requiring the drawee to pay on demand a sum to a specified person (the payee) or bearer. It is now usually used in overseas trade and the drawee may be a bank as opposed to an importer.
     The supplier or drawer usually submits the bill with the relative shipping documents. It is then anticipated by the drawee either as the agreed or implied method of payment. On receipt, the drawee either makes the required payment, or if payment is to be made at a future date, indicates acceptance by signing it.
     Wording on the bill will state when payment has to be made, for example, “60 days after date, we promise to pay...” means 60 days after the date of the bill; “60 days after sight, we promise to pay...” means 60 days after acceptance; and at sight means the bill is payable upon presentation.
     Once accepted, a bill of exchange is a negotiable instrument. The drawer can therefore obtain the money it represents by selling it to a financial institution at a discount. In the United Kingdom, the complex statutory law relating to these instruments is found in the Bills of Exchange Act (1882).

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  • bill of exchange — see bill 7 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bill of exchange …   Law dictionary

  • Bill of exchange — exchange ex*change ([e^]ks*ch[=a]nj ), n. [OE. eschange, eschaunge, OF. eschange, fr. eschangier, F. [ e]changer, to exchange; pref. ex out + F. changer. See {Change}, and cf. {Excamb}.] 1. The act of giving or taking one thing in return for… …   The Collaborative International Dictionary of English

  • Bill of exchange — Bill Bill, n. [OE. bill, bille, fr. LL. billa (or OF. bille), for L. bulla anything rounded, LL., seal, stamp, letter, edict, roll; cf. F. bille a ball, prob. fr. Ger.; cf. MHG. bickel, D. bikkel, dice. Cf. {Bull} papal edict, {Billet} a paper.]… …   The Collaborative International Dictionary of English

  • bill of exchange — A legal document, such as a cheque, where one person in writing specifies that a third party will pay a person a specific sum of money at a specific time, or upon demand. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy… …   Glossary of Bankruptcy

  • bill of exchange — bill′ of exchange′ n. bus a written order to pay a specified sum of money to the person indicated • Etymology: 1570–80 …   From formal English to slang

  • bill of exchange — n. a written order to pay a certain sum of money to the person named or to that person s account; draft …   English World dictionary

  • Bill of exchange — General term for a document demanding payment. The New York Times Financial Glossary * * * bill of exchange ˌbill of exˈchange abbreviation b/​e or bill noun bills of exchange PLURALFORM …   Financial and business terms

  • bill of exchange — General term for a document demanding payment. Bloomberg Financial Dictionary * * * bill of exchange ˌbill of exˈchange abbreviation b/​e or bill noun bills of exchange PLURALFORM [countable] …   Financial and business terms

  • bill of exchange — /ˌbɪl əv ɪks tʃeɪndʒ/ noun a document, signed by the person authorising it, which tells another person or a financial institution to pay money unconditionally to a named person on a certain date (NOTE: Bills of exchange are usually used for… …   Dictionary of banking and finance

  • bill of exchange — /ˌbɪl əv ɪks tʃeɪndʒ/ noun a document signed by the person authorising it, which tells another to pay money unconditionally to a named person on a certain date (usually used in payments in foreign currency) ♦ to accept a bill to sign a bill of… …   Marketing dictionary in english

  • bill of exchange — noun a document ordering the payment of money; drawn by one person or bank on another • Syn: ↑draft, ↑order of payment • Hypernyms: ↑negotiable instrument • Hyponyms: ↑overdraft, ↑foreign bill …   Useful english dictionary

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