bill of exchange

(German Wechsel - exchange) - a type of security, a written promissory note of a strictly statutory form, issued by a borrower (drawer) to a creditor (bill holder), giving the latter an unconditional, legally supported right to demand payment from the borrower by a certain date of the amount of money specified in B V. is distinguished by such important features as abstractness, unconditionality (indisputability), the right to protest, joint and several liability, which make it a reliable means of guaranteeing the repayment of debt on a loan. In modern conditions, V is also the most important instrument for settlements and lending in international trade. Transferred to B from one person to another is drawn up with an endorsement - endorsements B are: simple; transferable (draft), commercial, issued by the borrower on the security of goods; banking, issued by the banks of a given country to their foreign correspondents (foreign banks), treasury, issued by the state to cover their expenses. Simple B certifies the obligation of the borrower, drawer, to pay to the lender, drawer, the debt due within the agreed time period Transferable B, called a draft, is issued by the drawer (drawer) in the form of a written instruction, an order to the drawer (drawee) to pay the borrowed amount with interest to a third party (remitter) ). Thus, the remitter becomes a new bill holder. For example, the creditor Ivanov lent money to Sidorov, but transferred the bill received from Sidorov to the name of a third party, Mikhailov, to whom Sidorov must repay the debt. In this situation, Ivanov is the primary bill holder, drawer, Sidorov is the drawer, drawee, and Mikhailov is the secondary bill holder, payer. Bronze V. - "inflated", having no commodity coverage and no value, exhibited by entrepreneurs to each other in order to obtain bank loans. Guaranteed V. - V., issued to secure a business transaction without the holder of the bill of exchange receiving the amount indicated on it from the drawer Domiciled V. - with the proviso that it is payable by a third party - domiciliaries at the place of residence of the payer, or in another specified place. Treasury V., issued by the state to cover its expenses. Commercial V. - issued by the borrower against the security of the goods. Protested V. - according to which the debtor's refusal to pay is certified by a notary. Bearer V. - which is payable immediately at the request of the bearer. Urgent V. - with a fixed term. Financial V. - issued by one bank to another bank in order to receive money in return. Private V. • Issued by a private individual.