Summary of Antedate
The act of dating a bill of exchange or other instrument with a date earlier than the date of execution. For example, a draft dated December 1, but actually drawn on December 5, would be antedated. Antedating has no effect upon the negotiability of an instrument.
(Main […]
Summary of Acceptance Supra Protest
An action, also known as acceptance for honor, by which a third party accepts a draft or bill of exchange that has been dishonored, i.e., repudiated by the party upon whom it was drawn and where formal protest has been made. By accepting the instrument, […]
Summary of Loading
A risk premium in addition to interest charges and acceptance fees deducted by a bank or discount house from the face value of a bill of exchange (read here for further details) presented for discounting. This additional margin will vary, depending upon the quality of the […]
Summary of Acceptance
A bill of exchange or draft that has been accepted upon presentation to the drawee; the acceptance is created upon presentation by stamping or writing the word accepted across the face of the instrument, accompanied by the signature of the drawee. Instruments on which […]
Summary of Protest A notice in writing, prepared before a notary public or other official authorized to administer oaths, stipulating that a draft, check, bill of exchange, or other instrument has been dishonored, either by a refusal to accept on the part of the drawee, or by failure to pay […]
Summary of Allonge
An attachment to a bill of exchange or other negotiable instrument upon which additional endorsements can be placed when no room remains on the instrument itself. The method by which an allonge is to be attached is not specified, other than it must be "permanently […]
Summary of Accommodation Bill
A bill of exchange or similar instrument to which a credit-worthy party has added its endorsement, usually to enhance the value of the bill as a money market instrument.
(Main Author: William J. Miller)
Description of Accommodation Bill Resources See […]
Summary of Acceptor
A person who accepts a draft or bill of exchange. The act of acceptance is performed by writing or stamping the word accepted across the face of the instrument, accompanied by the acceptor's signature.
(Main Author: William J. Miller)
Description of […]
Summary of Draft
A written, unconditional demand upon a named party to pay a specified sum of money at a prescribed date. The person who makes the demand for payment, i.e., the person who prepares the draft, is known as the drawer or maker of the instrument; the party of whom payment is […]
Any bill of exchange (read here for further details) not accompanied by documents, such as invoices, bills of lading, et cetera. See direct collection….
Bill Of Exchange, Direct Collection….
A premium paid in the process of exchanging one currency for another, or for a bill of exchange denominated in a foreign currency….
A means of financing trade based upon the transfer of debt obligations arising from the sale of goods and services, usually exports. The merchant sells to the forfaiter, without recourse, the debt obligation of the foreign purchaser, usually in the form of a trade bill of exchange or promissory […]
A signature, whether or not accompanied by other writings, on the back of a negotiable instrument. By effecting endorsement, the endorsing party usually undertakes to guarantee performance of the instrument, commonly the payment of a specified sum of money at a date prescribed in the […]
A bill of exchange (read this legal term for further details) or other collection item sent with instructions to the collecting bank to wire acknowledgment of acceptance/collection or dishonor of the instrument….
The time allowed for settlement of a bill of exchange (read here for further details), as established by custom of the particular trade or usage….
Also known as a term bill, a bill of exchange (read here for further details) that affords a term of credit to the party accepting the bill (e.g., thirty days' sight, sixty days date). In effect, a usance bill is any bill other than one …
A product of the 1932 Geneva Convention on Bills of Exchange. The object of the act was to standardize various national laws and usages relative to bills of exchange, thereby overcoming an impediment to rade. The act specifies that a bill of exchange must contain:
1. The term bill of exch…
A bill of exchange (read here for further details) payable other than "at sight," i.e., immediately upon presentation. Bills drawn at sixty days' sight or thirty days date, for example, are time bills….
The dating provided in a draft or bill of exchange. A draft may provide for a tenor of, for example, sixty days' sight, which means the sum is payable sixty days from presentation. A tenor of sixty days date, on the other hand, means the instrument matures sixty days from the date of execution, …
A bill of exchange (read here for further details) denominated in pounds sterling….
A bill of exchange (read here for further details), payable at sight, i.e., upon presentation….
The rate of exchange used by a bank or foreign exchange dealer in purchasing a sight bill of exchange or similar instrument denominated in a foreign currency….
The presentation for acceptance of a bill of exchange (read here for further details) payable at sight or a given number of days after sight….
A bill of exchange (read here for further details) drawn by a holder of a dishonored draft to recover the face amount of the original instrument, plus protest fees and any exchange loss. The substitute bill may be drawn upon either the maker…
A bill of exchange (read here for further details) that states on its face that it arises from the sale of goods….
The party that originally draws a draft or bill of exchange, or that issues negotiable paper, and is ultimately responsible for payment or settlement of the instrument so created….
A bill of exchange (read here for further details) drawn upon and accepted by a party other than a bank; trade acceptances, for example, are private bills….
A signature or endorsement on a bill of exchange, check, or other document performed by an agent under a limited authority granted by the principal. An endorsement per procuration (indicated as "per proc.," "per pro.," or "P.P.") gives notice that the agent's author…
A condition that may be written on a bill of exchange or check, the effect of which is to stipulate that exchange conversion or collection costs shall be borne by the payee in the case of a bill, or the maker in the case of a check….
Synonymous with first of exchange Bill of Exchange is considered here….
A bill of exchange having a tenor of at least thirty days' sight, although the term is customarily used in connection with bills having tenors of sixty to ninety days' sight….
A bill of exchange drawn on London with tenor of more than thirty days' sight….
An infrequently used synonym for bill of exchange (read here for further details)….
A draft or bill of exchange containing a clause requiring the drawee to pay interest at a prescribed rate from the date the instrument was drawn until settlement at maturity. A common form of the clause reads: "With interest added thereto at percent per annum from
the date hereof to …
A bill drawn and payable in the same state….
A bill of exchange drawn by a bank upon its branch or subsidiary abroad….
Also known as a letter of hypothecation, a document attached to a bill of exchange (read here for further details) that arises from a shipment of merchandise. The hypothecation certificate empowers the bank presenting the bill or any subsequ…
A bill of exchange (read here for further details) drawn in one state or country and payable in another….
A bill of exchange (read here for further details) drawn in a currency other than that used in the country of the maker….
The date on which a note, draft, bill of exchange, or similar instrument matures, i.e., becomes payable….
The refusal of a drawee to accept a DRAFT or BILL OF EXCHANGE (qq.v.) upon presentation, or, having accepted the instrument upon presentation, refusal to pay the face amount of the instrument upon maturity….
Synonymous with Dollar Exchange (read this and related legal terms for further details)….
A draft or bill of exchange, wherever drawn, payable in U.S. dollars….
A draft or bill of exchange payable at sight….
A draft, bill of exchange, or similar instrument presented by a bank, acting as agent of the maker or holder, to the drawee for acceptance or payment. The most common form of such collection involves the presentation of a draft to a drawee, with or without accompanying documents such as bills of lad…
A bill of exchange drawn on a European bank, other than a British or Irish bank….