Bill of Exchange

Bill of Exchange: It is a negotiable instrument. It is an unconditional order, signed by the maker, to pay a certain sum of money, to a certain person, at the given date.
The bill is usually drawn in duplicate. The original copy is known as the 'First of Exchange'  and the duplicate is known as 'Second of Exchange'. Bill of Exchange to be drawn on the Issuing Bank. If drawn on Appliant of the L/C it will be considered as an additional document.
Bill of Exchange is commonly called Draft or Bill.
There are two types of Draft.
i) Sight Draft: It is payable on demand, at sight.
ii) Usance/Deferred/Time Draft: This type of Draft is payable at usance i.e. at a certain time after sight.

On the basis of the Draft, delivery of the documents also differ as under:
i) DA(Document against Acceptance) Bill: Under an Usance Draft, related shipping documents are deliverable against acceptance i.e. shipping documents may be delivered to the importer against his acceptance of the bill, without making of the payment at this stage.
ii) DP(Document agaist payment) Bill: Under a Sight Draft, shipping documents to be delivered to the importer , only against payment of the draft.

Particulars of a Bill of Exchange:
1. Drawer
2. Drawee
3. Particular amount
4. Issuing date
5. Certain payment date.

Parties of Bill of Exchange:
1. Drawer (আদেষ্টা): Who makes or draws the Bill of Exchange.
2. Drawee (আদিষ্ট): To whom the bill is addressed.
3. Payee (প্রাপক) : Who receives the bill i.e. the beneficiary.
4. Acceptor(স্বীকৃতিকারী):
5. Holder (ধারক):