Bill of Exchange Under Collection Documents

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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VirafMirza
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First Name: Viraf
Last Name: Mirza
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Bill of Exchange Under Collection Documents

Post by VirafMirza » Mon Jan 21, 2013 12:51 pm

Dear All,

Case Study : Two different bill of exchange
1) Drawer draws the bill of exchange on drawee and indicates pay to the order bank
2) Drawer draws the bill of exchange on drawee and indicates pay to the order of drawer

Could you please explain the difference between the two and the benefit of using the second bill of exchange when sending the documents on collection.
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picant
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Bill of exchange Act

Post by picant » Mon Jan 21, 2013 7:10 pm

Hi Pal,

I think that in the first case the bank become the owner of the bill, in the second just an endorser and may put the sentence"value for collection only" and will not resposable in case of unpaid item.
Other comments appreciated
Ciao
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TradeLaporte
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Two different bill of exchange

Post by TradeLaporte » Mon Feb 04, 2013 12:31 am

Hi Picant
I agree with your comments. On a DP is it necessary for draft to be endorse by remitting bank?
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