The practice of accepting or paying a bill of exchange after it has been dishonoured, by an individual aiming to preserve the honour of the drawer or an endorser.
Accommodation paper is a type of negotiable instrument signed by a party—without receiving value: to facilitate another party in obtaining money or credit.
An accommodation party is an individual who signs an accommodation bill as the drawer, acceptor, or endorser, thereby acting as a guarantor to assure the payment of that bill.
A bill of exchange is an unconditional written order directed from one person (the drawer) to another (the drawee), mandating the drawee to pay a specified sum of money either on demand or at a future date. This financial instrument is both transferable and negotiable, enabling enforceable monetary transactions.
A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.
Understanding the role of the drawee in financial transactions, including bill of exchange, cheques, and bank drafts.
The drawer refers to a person or entity who issues a financial instrument such as a bill of exchange or a cheque, instructing the drawee to pay a specified sum of money either immediately or at a later date.
Qualified acceptance refers to an acceptance of a bill of exchange that modifies the original terms of the bill. It provides protections for the holder, drawer, and endorsers of the bill.
A phrase indicating that the holder of a bill of exchange cannot seek payment from the original payee if the bill is not honored.
