Encyclopedia

Bill of exchange


In cases where, in accordance with an agreement between the parties, the borrower issues a bill of exchange that confirms an unconditional obligation of the drawer (a simple bill of exchange) or another payer specified in the bill of exchange (a trade bill of exchange) to repay the borrowed amount upon the due date stipulated in the bill of exchange, the relations of the parties with respect to the bill of exchange are governed by the law on trade and simple bills of exchange.

Source: "Civil Code of the Russian Federation (Part Two)" dated 26.01.1996 No. 14-FZ (as amended on 30.11.2011) (with amendments and additions coming into force from 01.01.2012)

1. A bill of exchange is a document drawn up in the form prescribed by law and containing an unconditional abstract monetary obligation; a negotiable instrument; a type of credit money. There are two types of bills of exchange: simple and transferable. A simple bill of exchange is an unconditional obligation of the drawer to pay a specified amount of money to the holder upon maturity. A transferable bill of exchange (tratta) contains a written instruction from the drawer (trassante) addressed to the payer (trassato), requiring payment of the amount stated in the bill to a third party - the holder of the bill (remittent). The trassato becomes liable on the bill only after accepting the bill, that is, agreeing to its payment by signing it on the bill (accepted bill)

Source: Letter from the Central Bank of Russia dated 09.09.1991 No. 14-3/30 "On banking operations with bills of exchange"

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