bill of exchange

bill of exchange An unconditional order in writing, addressed by one person (the drawer) to another (the drawee) and signed by the person giving it, requiring the drawee to pay on demand or at a fixed or determinable future time a specified sum of money to or to the order of a specified person (the payee) or to the bearer. If the bill is payable at a future time the drawee signifies acceptance, which makes the drawee the party primarily liable upon the bill; the drawer and endorsers may also be liable upon a bill. The use of bills of exchange enables one person to transfer to another an enforceable right to a sum of money. A bill of exchange is not only transferable but also negotiable, since, if a person without an enforceable right to the money transfers a bill to a holder in due course, the latter obtains a good title to it. If the drawee or acceptor of the bill is a bank, the bill is known as a bank bill or in the USA as a banker’s acceptance. If it is a trader, it is called a trade acceptance. These bills have a standard 90 days to maturity and their attractiveness will depend on whether they are eligible for rediscounting at the central bank. Seeaccommodation bill; bills in a set; dishonour.

• decimal currency
• decision making
• decision-making unit
• decision model
• decision support system
• decision table
• decision tree
• deck cargo
• declaration of dividend
• declaration of solvency
• decline stage
• decreasing term assurance
• deductible
• deduplication
• deed
• deed of arrangement
• deed of assignment
• deed of partnership
• deed of variation
• deed poll
• deep-line strategy
• deeply discounted security
• deep market
• de facto
• de facto director