Clausing

Summary of Clausing

The insertion of a notation on the face of a bill of exchange to describe the transaction that gives rise to the bill, e.g., “export of five cases welding equipment to Argentina aboard the SS Atlantic Mariner.”The purpose of clausing a bill of exchange is to identify those bills that may be eligible for discount at the Federal Reserve, whose regulations specify the circumstances under which a bill may be discounted.

See REGULATION A.

(Main Author: William J. Miller)