bankers acceptance

listen to the pronunciation of bankers acceptance
English - English
Bankers acceptances are negotiable time drafts, or bills of exchange, that have been accepted by a bank which, by accepting, assumes the obligation to pay the holder of the draft the face amount of the instrument on the maturity date specified They are used primarily to finance the export, import, shipment, or storage of goods [FRBC][FRBM][FRBSF] (see also bank)
An irrevocable obligation of an issuing bank and the borrower whereby both are liable for payment Used in domestic and international commerce to finance the shipment and storage of goods or to facilitate dollar exchanges with foreign banks Bankers acceptances are issued in a wide variety of principal amounts Maturities can be up to 180 days, but usually are for 30-60-90 days
Bankers acceptances are negotiable time drafts, or bills of exchange, that have been accepted by a bank that, by accepting, assumes the obligation to pay the holder of the draft the face amount of the instrument on the maturity date specified They are used primarily to finance the export, import, shipment, or storage of goods
An order in writing addressed by a company requiring temporary finance requesting the bank to whom it is addressed (which then signs it and becomes the acceptor) to pay at a certain future time a sum of money to, or to the order of, the company The accepting bank usually discounts the acceptance with a discount house or another buyer at a certain rate
A time draft that has been accepted by the bank Once acceptance takes place, it becomes an unqualified promise by the buyer to pay
A time draft drawn by a party (the beneficiary if issued under a Letter of Credit), drawn on and accepting bank will be the same as the bank the draft is drawn on However, this is not a requirement and a draft drawn on one bank can be accepted by another bank In this situation the beneficiary would look to the accepting bank for payment at maturity
bankers acceptance

    Hyphenation

    bankers ac·cept·ance

    Turkish pronunciation

    bängkırz äkseptıns

    Pronunciation

    /ˈbaɴɢkərz akˈseptəns/ /ˈbæŋkɜrz ækˈsɛptəns/
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