Bill of exchange: types and features

There are a lot of types of securities , we will consider in detail one of them.

There are quite a lot of classifications of bills, depending on the criteria used, the following types of this security can be distinguished.

Depending on the number of participants there is a simple (solo) and a transfer (draft) bill. The solo bill has only two parties to the party: a bill holder and a drawer. The latter is a debtor who has assumed the obligation to pay a certain amount of money in the agreed place at the agreed time, to the holder of the bill. If in such an operation there is a third party (payer), then it is a question of a bill of exchange. The drawer transfers the obligation to pay money to the payer (drawee), which must pay off with the payee (bill holder).

A bill of exchange may be with the participation of one, two, three or more persons. There are cases when the drawer appoints the recipient of money himself or whom he will later order. The main advantage of bills of exchange is that they solve the problem of transferring money between countries. This type of securities has several copies, which in the event of loss of the original, may act instead: original or first copy - draft, second - second, third - third.

Depending on the nature of the transaction, a commercial (commodity), treasury, bank or financial note is allocated. The Treasury bill is issued by the government to cover the budget deficit. A commercial bill is a tool of credit, since a commercial loan is based on a monetary obligation . Such a security can also act in a commodity transaction, where it serves as a monetary substitute in a variety of instruments for the sale of goods. The bank bill often has a deposit form, and is used in various financial transactions. It is easy to get a financial bill from a bank, for which you need to pay a bill in the cash department, and the bank will issue a bill for a period of 1 to 270 days.

The bank bill, in turn, is divided into interest and discount bill. The interest bill is somewhat similar to a loan: it is sold at the specified nominal value, and repaid with interest that is "dripped" on a certain date at the rate that is prescribed in the bill. Discount bills are sold at a discount or discount, and redeemed at par. Interest-bearing bills are "much cheaper", as the Central Bank calculates the amount to face value, and the tax on income received in the form of interest or dividends of only 15%, and on income from the difference of sale is taxed at 35%.

Depending on the security there are bronze, counter and friendly bills. Very interesting is a bronze bill that does not have a commodity cover, it does not participate in real transactions, it does not have a financial obligation, and in its circulation a fictitious person is necessarily involved. A friendly bill is a security that two people write out to each other in order to cash out the funds in the bank without the movement of goods.

By the method of transfer of bills can be bearer, order and nominal. From the names of securities it is very clear how they can be transferred from the drawer to the bill holder. Explanations require only a warrant bill. It is an appeal for a transfer signature.

The bill of exchange before the payment date can be transferred to the payer for acceptance. To make an acceptance of a bill means to assume the obligation to pay for this security within the timeframe indicated therein. If the payer refuses to accept it, a bill of exchange is protested through a notary.