Bill of Exchange Learning objectives: The students are required to 1. understand the definition of Bill of Exchange; 2. have a clear idea about the content of Bill of Exchange; 3. master the skills of making out a Bill of Exchange; 4. have a good command of the useful words and sentences.

2. There are three parties concerned in a bill of exchange: drawer: usually the exporter drawee or payer: usually the opening bank payee : usually the negotiating bank The contents of a bill of exchange : It must bear the word of exchange: bill of exchange /draft Tenor

Bill of Exchange (1-3) Certain amount in figures and in words. Date and place of issue Unconditional order to pay Payee Drawee Signature of the drawer Drawn under clause 4. Some more definitions in relation to

Bill of Exchange (1-5) the draft A) Date of issue B）Tenor There are four kinds： at sight/ on demand / on presentation (sight / demand draft)， at a fixed date (time / usance/ term draft) at a fixed period after date (at a fixed period after sight)

Bill of Exchange (1-6) C) signature of the drawer presentment / presentation acceptance endorsement

1 Example: Drawn under …………………………… L/C NO. ………………………………… Dated …………………………………… Payable with interest % per annum No. ………….Exchange for………………… Shanghai, China …………2004 At ………… sight of this First of Exchange (Second of exchange being unpaid) pay to the order of ………………………..………… the sum of ………………………………..…..…… To………………. For and on behalf of -------------------- 1

Job project (1-1) Make out a Bill of Exchange according to the L/C ( P112) and the following information: 1. S/C No. : 99 A 15AAL5029 2. Commodity: Tri-circle Brand Brass Padlock 3. Unit Price: @USD 7.357 per dozen CFR Bangkok.

Job project (1-2) (FOB Value: USD6290.90, Freight Charges: USD330.40) 4. Total value: USD6621.30 5. Packing: In wooden cases of 100 dozen. Each 6. Vessel: East Wind V.19

Job project (1-3) 7. Shipping Mark: NHIT BANGKOK NO. 1-9 8. Gross weight: 1800KGS 9. Measurements: 6.628 M

2 Bill of Exchange Qingdao Dec. 26, 1998 Drawn under L/C NO. ………………………………………….. Dated …………………………………………. Payable with interest % per annum No. ………….Exchange for………………… , China At sight of this Second of Exchange (First of exchange being unpaid) pay to the order of ………………………..………… the sum of To For and on behalf of FIRST BANGKOK CITY BANK LTD. 001-10397-1998 2 NOV.13, 1998 A123 USD6621.30 Qingdao Dec. 26, 1998 AT SIGHT Bank of China, Qingdao Branch SAY US DOLLARS SIX THOUSAND SIX HUNDRED AND TWENTY-ONE POINT THREE ONLY FIRST BANGKOK CITY BANK LTD. HEAD OFFICE 20 YUKHON 2 ROAD, BANGKOK 10100, TAILAND Shandong Imp/Exp Corp. 张珊

Bill of Exchange (1-7) Homework Review what have learned today. Ask students to make out a draft according to the L/C given on page110.