Bill of Exchange Test - 5

initially noting charge is paid by the drawer but subsequently it is recovered by the drawer from the drawee. hence the burden of noting charge is ultimately is borne by the drawee.

Discounting of bill of exchange= it means encashing a bill of exchange before its due date.

the promissory note requires the fixation of stamp duty. proper stamp duty must be paid on the promissory note.

when a bill is discounted with the bank and is dishonoured, the liability of drawer will arise. hence, the bank will look to the drawer for payment. 

a foreign bill of exchange is a payment drawn up in one country that is payable in another country.

when the holder of a bill encashes the bill from a bank before the due date, it is known as discounting of the bill.

sometimes, an acceptor expresses his inability to meet the bill on the due date and requests the drawer, to substitute the old bill with a new one. the purpose is to get an extension of time. if the drawer aggres, the old bill is cancelled and a new bill is drawn and of course accepted by the drawee. this process is called the renewal of bill.

when a bill is paid on maturity it is technically known as honouring of the bill of exchange.

when the drawee of the pays amount of bill before the date of maturity, it is retiring the bill. generally holder of the bill, in such cases, allows some deductions to the drawee because of early payment made by him such discount is called the rebate.

initially noting charges are paid by the drawer of the bill but subsequently, such charges are recovered by the drawer to the drawee. hence, the burden of noting charges are ultimately borne by the drawee.