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. See accommodation bill; bills in a set; dishonour

Big dictionary of business and management. 2014.

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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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