Acceptance And Return

Summary of Acceptance And Return

The act of returning an accepted draft or bill of exchange, through banking channels, to the maker to await maturity. Upon maturity, the holder of the instrument would return it to the drawee and demand payment. This process is cumbersome and is often avoided by leaving the acceptance at the bank that made the original presentation to the drawee; upon maturity, the bank will demand payment from the drawee and remit the proceeds to the owner of the bill.

(Main Author: William J. Miller)