1. Bills of Exchange (BOE)
• Nabeel Firdaus
• Mohd Aswadi
• Putera Achruff Ichkandar
• Norhashimah
• Nurazila
2. • 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
3. •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
4. • 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.
5. • 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.
6. 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 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.
7. • 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