Clean Bill of Exchange

When no documents are attached to bill is called clean bill.

A clean bill of exchange is that the name given to a bill of exchange, either a draft or foreign cheque, that's not accompanied by documents.

Features and benefits:

    Foreign cheques are often deposited directly into your account at the present exchange rate. However, the funds can only be offered once the cheque has been cleared
 you'll money the cheque (subject to credit approval), this could carry additional charges.
    In some cases it may take up to 8 weeks or maybe longer to clear or cash a cheque.
 

 

Qualifying Criteria:
    In terms of exchange control rules you're needed to convert the cheque into rand within thirty days of receiving it.

Noting Charges

Charges which are paid to notary public for noting of bill are called noting charges.

Notary Public

A public officer who notes the bill of exchange on its dishonor is called notary public.

A public official whose main powers include administering oaths and attesting to signatures, each important and effective ways that to minimize Fraud in legal documents.

The origin of notaries public can be copied to ancient Rome, where a notarius was command in high believe legal counsel. throughout that era only the few people who knew a way to write were qualified to function a notarius. A notarius wrote legal documents, including contracts and wills, and retained them for safekeeping. little fee was charged for those services, a practice that continuing to modern times.

Dishonoring of Bill of Exchange

When drawee of the bill refuse to make payment of the bill on due date is called dishonoring of bill.

What happens when a bill isn't honored by the acceptor on the day of the month (cash isn't paid to the holder of the bill)? A bill of exchange is said to be dishonored once its acceptor refuses to pay the amount of the bill to the holder of the bill on its maturity. The bill then becomes useless and also the party from whom it's been received liable to susceptible to liable to the number. it's important to understand that, when a bill is dishonored, in whose possession it was? as a result of once a bill is ashamed, all the parties concerned square measure accomplished and books of accounts of all the parties have to be adjusted. for example, A draws a bill of $5,000 on B and B accepts it and returns it to A. A retains the bill in his possession until the due date. On the due date the bill isn't honored by the acceptor. We can see, there square measure 2 parties involved whose books are to be adjusted. If suppose, A has discounted or endorsed the bill, then there are 3 parties involved and books of accounts of all the parties are effected.

Holder of Bill

A person who hold the bill with his name with possession of bill and claim the amount due on it, is called holder of bill.

An individual who has lawfully received possession of a commercial Paper, like a check, and who is entitled to payment on such instrument.

A holder is distinguishable from a holder in due course since, in addition to possession of the instrument, the latter takes it for worth, in good faith, and in the absence of any notice that there's any claim against it or that it is owed or has been dishonored, which means that payment of it's been refused.

Rebate on Bills of Exchange

Amount which is allowed to drawee for early payment of bill of exchange is called rebate.

The portion of interest on short sale proceeds that's paid out to the borrower of a bond as an incentive for them to borrow the stock from a specific source. once a short sale takes place, the short seller often borrows a security through a loaner (who acts as an intermediary), WHO in turn borrows the security from associate owner of keeper. The short sale's return square measure then came to the lender, who then invests the return and earns interest on them. certain short sellers would possibly demand a portion of this interest, so as for them to do business with that particular loaner.

Retiring of Bill

A process of payment of bill before due date by drawee against rebate is called retiring of bill.

Retiring a bill means that making payment before the date of maturity. once the acceptor of a bill is prepared to form the payment of the bill before the due date, he could ask the holder to simply accept the payment, provided he receives some rebate or discount for the unexpired  period. Such a rebate or discount is an expense to the party receiving the payment and gain to the party making the payment.