Accommodation Bill

When bill of exchange is drawn, accepted without any consideration for accommodation of himself/accepter or for mutual accommodation is called accommodation bill. 

Bill of exchange supported by a reputable third party (called an accommodation party or accommodation endorser) acting as a guarantor, as a favor and while not compensation. The bill then are often discounted on the monetary strength of the guarantor who remains liable till the bill is paid. also known as accommodation note, accommodation paper,

General Acceptance

When bill is accepted without any condition by drawee is called general acceptance.

Qualified Acceptance of Bill of Exchange

When bill is accepted with some condition by drawee is called qualified acceptance.

An acceptance of bill of exchange that varies the result of the bill as drawn. It solely affects the rights of these previously liable on the bill. commonly the drawer presents the bill for acceptance and need not accept the qualification. If the bill has been negotiated before acceptance the holder isn't certain to take a certified acceptance once he presents the bill, could treat the bill as disgraced. If he takes a certified acceptance he releases from liability all previously signatories who did not assent. The partial acceptance, i.e., solely only the add mere, doesn't release the previous signatories providing they're notifies.

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.