Bills of Exchange (BOE)

• Nabeel Firdaus• Mohd Aswadi• Putera Achruff Ichkandar

• Norhashimah• Nurazila

Inland bill

• Only one copy is prepared•Stamps are affixed only once•Written in common and local language of the country•It is noted after dishonor•Its is written on judicial stamp paper

trade bill

•Drawn on and accepted (trade acceptance) by a trader in payments of goods •Commercial credit. It can be issued by both the payee and the payer.•It is available to legal corporate or other organizations for domestic cross-city or inter-city account settlement of physical commodity trade

Accommodation bill• Bill of exchange endorsed by a reputable third party

(called an accommodation party or accommodation endorser).

• acting as a guarantor, as a favor and without compensation.

• The bill then can be discounted on the financial strength of the guarantor who remains liable until the bill is paid.

• a financial document, used especially in international trade.

•  a bill of exchange payable at a definite future time.

• orders a person or organization to pay a particular amount at a particular time for goods or services that they have bought.

Time bill

i. Commercial bills : Documentary bills- Short (demand or within 30 days sight).- Long (30 days sight or more)

Clean bills- Cables- Checks-Sight, demand or presentation bills-Time bills

ii. Banker’s bills : Tenor (term)- Cables- Checks- Short bills (within 30 days sight).- Long bills (30 days sight or

more).

Purpose- Against current balances.- Against open credits – finance

bills.

Foreign bill- Foreign bills of exchange are classified in many different ways, giving rise to much confusion among laypeople because these classifications are not mutually exclusive but in fact, overlap.

• a bill of exchange that is payable on demand • Also called: sight bill• On delivery of a sight bill to the drawee, the drawee

pays immediately.• A bill of exchange payable on demand is called a

sight bill or draft

Demand bill