What should proper eyebrows look like?
How to choose the right one yourself A beautiful face is always in trend. And how can we not mention the beautiful eyebrow line...
A bill of exchange is a security, a separate document, of a strictly prescribed form, containing either an unconditional obligation of the person issuing it (promissory note), or his order to a third party (bill of exchange) to pay the specified amount to the person named in the bill or to the bearer of the bill within a specified period. Usually the bill is executed on paper.
The person in whose favor the bill of exchange is issued may, without waiting for the maturity date of the bill of exchange, use it to make payments on his obligations or take it into account at the bank. When transferring a bill of exchange, it is necessary to comply with the formalities provided for by bill of exchange legislation. A special endorsement (endorsement) is made on the reverse side of the bill of exchange, ensuring that the bill of exchange has been transferred to another person. The person transferring the note assumes responsibility (to all subsequent holders) for repaying the obligation on the note.
A bill is an unconditional debt obligation of the payer specified in the bill to pay a certain amount within a specified time frame.
Main characteristic features bills are:
The bill is one of the oldest securities used in world practice. The origin of the bill dates back to the 12th century. Currently, a well-developed bill of exchange law is in effect. There are two main systems of bill of exchange law used in the world. The most widespread is the Geneva system, based on the Uniform Law on Promissory Notes and Bills of Exchange. Currently, more than 70 countries, including Russia, have joined the Geneva Convention. In some countries (about 40) there is a bill of exchange law based on the English Bills of Exchange Act of 1882. This law is still in force in the UK.
In practice, the following types of bills are distinguished:
1. Commodity (commercial) bill. This type of bill mediates a commercial transaction. With the help of a bill of exchange, the selling company provides a commercial loan to the buyer, accepting from him a bill of exchange to be paid within a certain period of time as payment for the goods. A commercial bill has two main functions. Firstly, it is an unconditional debt obligation, and secondly, it serves as a means of payment, since the owner of the bill can use it to pay his suppliers for goods, work, and services.
2. Financial bill- this security is based on a financial transaction not related to a commodity transaction. A financial bill mediates a financial transaction related to obtaining a loan.
A loan agreement is not drawn up between the lender and the borrower, but the borrower sells a bill of exchange to the investor, thereby attracting financial resources.
With the help of a financial bill, enterprises can issue loans to each other, and it is also possible to formalize overdue accounts payable of enterprises for payments to the budget, carry out budget financing, etc.
In Western countries, financial bills of exchange issued by non-banking institutions have become widespread. Large companies with a stable credit history and a reputation as a first-class borrower resort to issuing such bills. These bills are issued without security for a short-term period and are not subject to state registration. Their redemption does not require the preparation of an issue prospectus, an auditor's report, or registration, which significantly simplifies the issue procedure, speeds up the process of attracting financial resources and reduces costs.
In Russia, bank bills have become widespread as a type of financial bills. With the help of these bills of exchange, deposit operations of banks are formalized. The bill certifies that the company has paid the bank the amount specified in the bill, and the bank undertakes to repay this bill within a certain period of time with the payment of interest income. In fact, the bill acts as a certificate of deposit.
3. Friendly bill. These bills are issued to each other by persons for the same amount and for the same period. Friendly bills are not backed by any actual transaction. The purpose of issuing these bills is to provide assistance to one of the participants in the bill circulation who is experiencing financial difficulties. Having received a bill of exchange, a company can use it to pay suppliers for goods or pledge it to a bank to receive real money. Friendly bills are issued by real persons who are in very close relationships and unconditionally trust each other. Friendly bills have a very high degree of risk.
4. Bronze bill. This bill is issued for the purpose of committing fraudulent transactions. The bronze bill does not mediate either a commercial transaction or a financial transaction. As a rule, at least one person participating in bill circulation is fictitious. The purpose of issuing a bronze bill is to obtain a bank loan secured by the bill or to pay with a bill for commodity transactions or financial obligations.
In Russia, the issuance of friendly and bronze bills is prohibited.
All issued bills are divided into two large groups: simple and transferable.
Promissory note(solo bill) is an unconditional debt obligation of the debtor (drawer) to pay the creditor (bill holder) a certain amount of money in a certain place and on time or, by order of the creditor, to transfer funds to a third party.
A distinctive feature of a promissory note is that the debtor is always the person who wrote the bill, i.e. the drawer. The holder of a bill of exchange can use it in settlements with his counterparties, transferring his debt to the drawer.
Bill of exchange(draft) is an instruction (order) of the creditor (drawer), obliging the debtor (drawee) to pay the amount indicated in the bill within a specified period to a third party (remitee). The person who issues the bill of exchange is called the drawer or drawer.
The peculiarity of the issue and circulation of a bill of exchange is that it cannot serve as a simple means of payment. The remittor, receiving a bill of exchange, is not sure that the drawee indicated in it will make payment. Therefore, it is first necessary to make sure that the debtor agrees to pay the bill amount. To do this, the bill is sent to the drawee for acceptance.
Acceptance- this is a written consent to fulfill obligations under the bill. The drawee confirms his consent with an inscription on the front side of the bill. It should be noted that the owner of the bill can transfer it to another person without the payer’s acceptance. However, an unaccepted bill is much less popular compared to bills for which the payer’s acceptance has been received. Acceptance may be complete or partial.
Full acceptance means that the drawee will pay the full amount specified in the bill within the specified time period.
Partial acceptance means that the debtor agrees to pay only part of the amount. Consequently, the other part of the payment amount remains unaccepted. The holder of the bill must agree to the mastic acceptance and file a protest against the unaccepted amount. Thus, the holder of the bill has the right to make regressive claims against all persons obligated under the bill. This procedure is provided for by the Geneva Convention.
In English law, there is a different procedure for full and partial acceptance. Full acceptance is unconditional. However, English bill law allows for the establishment of certain conditions for payment. In a bill of exchange, in particular, the possibility of payment may be recorded only after the occurrence of some event. If the event does not occur, then the payer may agree to partial payment of the bill amount, i.e. make limited (partial) acceptance. The holder of the bill has the right to refuse limited acceptance.
A bill of exchange may be presented for acceptance at any time, from the date of its issue until the date of payment. It is possible to present a bill of exchange for acceptance even after the expiration of the payment period. The debtor responds to the bill in the same way as if he had accepted the bill before the due date.
If the payer refuses to accept the presented bill of exchange or refuses to make payment of an already accepted bill of exchange, the holder of the bill of exchange has the right to protest the bill of exchange, i.e. present regressive claims to the previous owners of the bill, whose signatures are on the endorsements.
The transfer of a bill of exchange from one person to another is carried out by making an endorsement on the reverse side of the bill of exchange, which is called an endorsement. The person who makes the endorsement is called the endorser, and the person who, as a result of this endorsement, received the bill for his use is called the endorser.
Depending on the amount of information contained in the endorsement, several types of endorsements are distinguished.
Firstly, the endorsement can be full or partial. A full endorsement transfers all rights under the bill to the endorsee. A partial endorsement transfers only part of the rights. According to Russian law, partial endorsement is prohibited.
Secondly, the endorsement can be blank, personal or guarantee. With a blank endorsement, the endorsement does not indicate the person by whose order the payment must be made. In this case, the bill is considered issued to bearer. The endorser signs the bill and transfers it to the new owner. If there is a further transfer of the bill, then the transfer is carried out by simple delivery without a new endorsement. A bill of exchange payable to bearer can be made personal if the endorsement indicates the person by whose order the payment is made.
Personal (full) endorsement means that when an endorsement is made, the bill of exchange indicates the person to whom it is transferred. In this case, we have a registered security.
An endorsement of endorsement is made with the purpose of entrusting the person specified in the endorsement to carry out certain operations. Typically, an order is given to the bank to receive funds from the payer, to protest non-payment, to pledge a bill of exchange, etc. The recipient of the bill under the endorsement does not become the owner of the bill, he only fulfills the order specified in the endorsement. All further endorsements on the bill can also only be guarantees.
Thirdly, the endorsement can be negotiable or non-negotiable. By making a negotiable endorsement, the holder of the bill does not make any reservations about the bill. This means that in case of recourse, he is fully liable for the bill obligations.
Non-negotiable endorsement is made with a certain clause “without recourse to me”, i.e. in case of non-acceptance or non-payment by the debtor of the bill amount, the person who made the non-negotiable endorsement disclaims liability for bill obligations. In this case, all persons who made a negotiable endorsement bear joint liability for the bill.
The endorsement is usually written on the reverse side of the bill. In some cases, if it is assumed that the bill will have many endorsements, then an additional sheet is made for endorsements, which is called an allonge.
In order to increase the reliability of the bill of exchange and increase the guarantee of payment, the bill of exchange is valorized by third parties.
Aval- this is a guarantee of a legal entity that guarantees full or partial payment of a bill in the event of failure by the debtor to fulfill its obligations. When avaling, the following inscription is made on the front side of the bill: “Count as aval.” Aval can be issued for any person responsible for the bill. In this regard, the avalist must indicate the person for whom he vouches. If such an indication is absent, it is considered that the aval was issued for the drawer.
It should be noted that it is prohibited to issue an aval for participants in the bill of exchange who have relieved themselves of responsibility for the bill. For example, for a debtor who did not accept a bill of exchange, or for an endorser who indicated in the endorsement: “Without recourse to me.”
Placing an aval sign makes the avalist a participant in the bill of exchange transaction, i.e. he, along with other persons who signed the bill, is jointly and severally liable to the bill holder. If the avalist has made payment on the bill, then he, as a participant in the bill of exchange, acquires the right to claim compensation for the amount paid to the person for whom he paid, as well as to all other participants obliged to this person.
A mandatory detail of the bill of exchange is the indication of the payment term. Depending on the financial condition of the drawer or drawee, various options for determining the payment date may be indicated. In the practice of bill circulation, the following payment terms are used:
Discounting of a bill means its transfer by the holder of the bill to the bank to receive the bill amount before the payment date. For discounting a bill of exchange, the bank charges a fee, reimbursing the holder of the bill of exchange for the amount specified in the bill of exchange, minus the discount interest (discount).
There are two types of bills:
FRIENDLY BILLS
counter, mutual bills not related to a commercial transaction; the creditor on one of the friendly bills is the debtor on the other. Friendly bills are issued to each other in order to subsequently obtain a bank loan on them by discounting such bills in the bank.
Dictionary of business terms
Dictionary of legal terms
Financial Dictionary
Great Accounting Dictionary
Great Accounting Dictionary
Reference commercial dictionary
Librarian's terminological dictionary on socio-economic topics
Financial Dictionary
Encyclopedic Dictionary of Economics and Law
Encyclopedic Dictionary of Brockhaus and Euphron
Synonym dictionary
Synonym dictionary
Synonym dictionary
Synonym dictionary
Synonym dictionary
FRIENDLY RELATIONS The Khrushchev years were years of flourishing friendships in the circles in which I moved. In any case, I cannot complain about the lack of such relationships. I cannot list here all the people with whom I had
Friendly drinking sessions. Klena Klena Belyavskaya was a “girl” aged 40–50, stocky, strongly built, with square hips and broad shoulders. Her head, with short-cropped, light brown hair, like a boy's, and her bright pink face with large features rested
Friendly services. Hungary The Active Measures Service maintained constant contact with the intelligence services of the socialist countries. In this regard, I visited Bulgaria, Czechoslovakia and Hungary. Our relations were the most friendly, and problems of interaction were solved relatively easily.
Mysterious and mysterious friendships between Goethe and the Jacobi brothers. Until now it has been a tense mutual misunderstanding. Goethe's critical attacks against them and Wieland sounded arrogant in an effort to assert their own positions. True, with Betty, Friedrich's wife, he was with
Promissory notes To secure obligations against received values, an organization can issue its own promissory note. In this case, the debt under the transaction is listed on the balance sheet in the full amount of the debt. When using your own in payments for goods (works, services)
Bills When a young company is just being born, its financial capabilities are extremely limited. An entrepreneur who has organized a company tries to get financing anywhere and from anyone. He needs money to develop his business. One of the first options
FRIENDSHIP RELATIONS IN THE FUTURE Every time a family moves from its place, it also tends to “throw away” a certain number of distant friends and acquaintances. When they are abandoned, they are usually forgotten. But not all relationships end after
Friendly hugs with Saddam Hussein The first war against Iraq played an important role in his biography. It was one of those countries that he knew well. It is not surprising that he was to play one of the main roles in the Iraqi crisis. Saddam Hussein had
Friendly relationship with father 440. A boy needs his father's friendship and approval. Both boys and girls need the company of their father, his love. It is good if children have the opportunity to spend a lot of time with their father, feel his affection and, if possible, help him. Unfortunately, father
Friendly Hugs The authors of this book are big fans of friendly hugs. Yes, don’t be surprised, because hugs are a great way to exchange positive emotions and energy. Mark and his wife Patty even conducted
2. Long-term friendly relationships In cases belonging to this group, the relationship initially develops as exclusively friendly: it acquires a sexual nature much later. Relationships are based on mutual attraction, and there is always a presence in them.
FRIENDLY PROHIBITIONS Some women are scared by the thought of what their friends will say. “Groupthink” can be quite a burden for the female half of humanity. “Oh, Emmy, I don’t believe Bob even dared to ask you this! To my George
Cultural trip and friendly hugs Sitting on the plane on the way home, after a short vacation, my daughter suddenly asked: “Mom, why did you only watch the first part of Tom Sawyer?” “I had to finish my work in time.” It was comfortable for you to stay at the performance with
Friendly communities Organized behavior. Common crows, such as barn crows, have long been known for their highly organized social behavior. Waking up just before dawn, one of the main crows sits on a high tree in front of an open place and begins
FRIENDLY GESTURES There are many small ways in which we can learn to express our feelings of friendship more clearly. Here are just a few of them: 1. When you greet your new friend, shake her hand.2. When you say goodbye, touch
By issuer:
A) treasury bills– short-term debt obligations issued by the government of a country, usually through the intermediary of the Central Bank;
b) private bills– issued by corporations, financial groups, commercial banks and capable individuals.
For serviced transactions:
A) financial bills– reflect the relationship of borrowing money by the drawer from the holder of the bill at certain interest rates. There are bank, friendly, and bronze bills;
b) commodity (commercial) bill– serves transactions for the purchase and sale of goods, i.e. acts as a form of commercial credit provided to each other by entrepreneurs. Its essence is deferred payment;
Depending on the entity making the payment of the bill amount:
A) simple (solo) bill- a written document containing a simple and unconditional obligation of the drawer (debtor) to pay a certain amount of money at a certain time and in a certain place to the holder of the bill or, on his order, to another person. There are two parties involved in a promissory note from the very beginning:
- drawer, who himself undertakes to pay the issued bill;
- bill holder, who has the right to receive payment on the bill.
The circulation scheme of a promissory note is shown in Figure 9.1.
promissory note promissory note
Rice. 9.1.- Scheme of circulation of a promissory note
A bill of exchange can be repeatedly transferred from hand to hand with the help of an endorsement, and the liability for it is joint and several for all parties involved. Endorser- the person transferring the bill, endorser- the person to whom the bill is transferred.
b) bill of exchange (draft)- a written document containing an unconditional order from the drawer to the payer to pay a certain amount of money at a specified time and at a specific place to the drawer or, on his order, to another person. The drawer is called drawer, and the payer – drawee. There are initially three parties involved in a bill of exchange:
- drawer, transferring payment to the drawee;
- bill holder, having the right to receive payment from the drawee;
- drawee, who is the payer of the bill.
By type of income received:
a) interest-bearing bills– the owner receives income in the form of interest accrued on the nominal value;
b) discount bill- the owner receives income in the form of a discount, which is the difference between the nominal price (sale price) of the bill and the price of its acquisition.
The circulation scheme of a promissory note is shown in Figure 9.1, and a transferable one in Figure 9.2.
bill of exchange
amount due
0 bill 2nd copy. 1st copy
Rice. 9.2.- Bill of exchange circulation scheme
By payment term:
a) definitely urgent bills– they establish a specific date (day) of payment;
b) indefinite term bills– the payment date is not determined in advance and depends mainly on the holder of the bill.
By availability of collateral:
a) secured bills– guaranteed by collateral, which remains at the disposal of the creditor until the debt is fully repaid;
b) unsecured bill– not guaranteed by collateral;
V) bronze bill- a bill that does not have real security; the payer is either a fictitious person or a person known to be insolvent.
If possible, transfer to another person:
a) endorsed bill– can be transferred by endorsement to another person;
b) unendorsed bill– it is a registered bill of exchange, transferring it to another person is not possible, it contains the clause “not to order”.
By place of payment:
a) domiciled bill– the place of payment does not coincide with the location of the payer, the first holder or the place of issue of the bill;
b) non-domiciled bill– the place of payment is the location of the drawee (bill of exchange), drawer (promissory note), remitee (first recipient) or place of issue of the bill.
repayment of goods (services)
Rice. 9.3.- Scheme of a bill transaction using
friendly bill
Bank bill- a unilateral, unconditional obligation of the bank issuing the bill to pay the holder of the bill the amount specified in the bill within the prescribed period. The scheme of a bill transaction using a bank bill is presented in Figure 9.4.
bill payable
bill amount + remuneration
Rice. 9.4.- Scheme of a bill transaction using
bank bill
Friendly is a security signed for the purpose of increasing the authority of a legal entity or firm when the debtor on one bill is a creditor on another. Friendly bills are required to be recorded in the asset column of the balance sheet to create a positive impression on the banking system and enable the bank to take out a bank loan.
The main condition for creating a friendly bill is trust between the parties. If one person trusts another, the creation of a promissory note is permitted. How to write it correctly? It’s very simple: both people issue equal bills of exchange to each other. Thus, everyone will be both a creditor and a debtor. For example, a company needs to take out a loan from a bank; in order to receive it, it must prove its solvency. A company will be solvent when the number of its assets exceeds the number of liabilities, and accordingly, income exceeds expenses. A bill for the creditor is , because it will be received in the future. Naturally, the more bills there are in the asset column, the more confidence the company will have in the bank and will be able to get a loan. The bills will later turn out to be friendly, that is, worthless, but the company will use the loan received from the bank for its prosperity.
Very often, such a procedure involves not even two, but three persons, two of whom are relatives. The owner of the company receives a bill of exchange from a third party, entering it in the column of his assets, and the person who issued the bill (he becomes a debtor) issues a similar document to a relative of his “creditor”. If we look at the balance sheet of each person, we see the following: the owner of the company who needs a loan has only assets in the form of bills of exchange, the person who gave these bills has , because he is a debtor, and assets, because he received a bill of exchange from a relative of the owner of the company for the same amount. The owner of the company is better off because the banks now trust him, the third party is in the same position because the assets balance the liabilities, and the relative of the owner of the company is worse off because he only has liabilities. But, being a relative of the owner of the company, he expects to repay his debts.
The trust of the bank is not the only reason for creating a friendly bill. Improving the balance sheet can lead to many other positive actions, such as increasing the value of a company's shares and making money on speculation.
Also, improving the balance sheet with the help of friendly bills makes the company attractive to investors, and from the outside is often a decisive factor in business success.