Bài thuyết trình BILL OF EXCHANGE

Bài thuyết trình BILL OF EXCHANGE

Group: AVENGERS

BILL of EXCHANGE (B/E)

PRESENTATION OUTLINE

TẤT ĐẠT

1 DEFINITION

2 TYPES

3 FUNCTIONS

4 HOW TO USE

5 PRACTICAL SAMPLE OF B/E

TẤT ĐẠT

DEFINITION

An unconditional order for payment drawn on a drawee by a drawer requesting the drawee at sight of the bill of exchange

or on a specific date or a determinable future time to pay a certain amount to a beneficiary or to order of this beneficiary

to pay to another one or to the bearer

TẤT ĐẠT

Parties in B/E circulation

 Drawer: the party who signs the B/E, requesting the

payment

 Drawee: the party on whom the B/E is drawn

 Bearer: the last beneficiary who presents the B/E for

getting payment

VÂN ANH

TYPES

As to Tenor of Payment

Sight Bill Time/Usance Bill

is payable on demand or at

sight or on presentation and

when no time for payment is

specified in it

is payable at a fixed or determinable future time

presented to the drawee at

any time diarised

As to Origin

defined as a promissory note,

bill of exchange or cheque

both drawn and made

payable in the same country

drawn in one country and payable in another country

VÂN ANH

HỒNG PHÚC

Features of B/E

 Must be in writing

 Must be dated

 Must contain an order to pay a certain sum of money

 Must be unconditional

 Must be payable to a definite person or to his order or to

the bearer

 Must be for specified amount and specified period

 Must be accepted be the party on whom the order is made

 One language is used

 Made out into many copies (two is popular)

 Corrections are not accepted in B/E

HỒNG PHÚC

Facilitates the granting of trade credit

in a legal format

Provides formal evidence of the

demand for payment from a seller to a buyer

Provides the seller with

access to finance

Functions of B/E

HỒNG PHÚC

Permits the banker or financier to retain a

valid legal claim on both the buyer and the seller

Permits a seller to obtain greater security

over the payment

Allows a seller protect their access to the legal system in the

event of problems, while providing easier

access to that legal system

Functions of B/E

HOW TO USE

Example

ac ce

pt ed

TRỌNG NGHĨA

HOW TO USE

Acceptance of Draft

 The payer recorded on the front, lower left corner of the draft after the "To:" with the words: "Accepted" and then the signature of the payer In case, the front was filled, then this procedure will be done on the back draft

 The payers have the right to refuse acceptance of the draft

if there are legitimate reasons

 A draft, if signed acceptance, will ensure the reliability of payment and will easily flow more favorable for the transfer

HẢI LINH – ANH QUÂN

PRACTICAL SAMPLE OF B/E

Form of B/E

 The validity of written or printed B/E is not affected

by its length

 Pencil, red ink or easily-faded ink is not allowed

in writing drafts

PRACTICAL SAMPLE OF B/E

Analyze contents of B/E

 B/E number

 B/E title

 B/E amount

 Place of drawing B/E

 B/E date

 Time of payment

 Beneficiary

 In case an L/C is relevant, B/E usually includes “ll charges

and amount will be to the account of … (the importer)”

with information about the L/C

 Name, address of the drawer and signature of the legal

representative of the drawer

 Name, address of the drawee

HẢI LINH – ANH QUÂN

THANK YOU FOR YOUR ATTENTION!!!

HẢI LINH – ANH QUÂN

Reference: IMPORT-EXPORT AND INTERNATIONAL PAYMENT

by NGUYEN XUAN MINH, Ph.D