Acceptance of Bill of Exchange | Dishonor of Bill of Exchange

Acceptance of Bill of Exchange

          After a bill is drawn by the drawer i.e. creditor the drawer sells it to the debtor for getting his approval . The debtor gives his approval to the order of the drawee either by writing accepted across the face of the bill together with his sign or just by signing the bill and returns it to creditor. By this action the debtor accepts that he is liable to pay the specified amount in the required date.

Dishonor of Bill of Exchange

          A Bill of Exchange may be dishonored either by non acceptance or by nonpayment. It is said to dishonored by non acceptance when the drawee refuses to accepts the bill of exchange when it is presented before him for acceptance. While it is said to dishonored by nonpayment when the drawee accepts the bill but fails to make the payment on the due date when it is presented before him.

Noting of the Bill : 
            Writing the statement on the dishonor of a bill by the notary public is called noting of the bill.

Protest : 

              A formal certificate attesting the dishonor of the bill is issued by notary public is called protest.

Noting Charges: 

          When a dishonored bill is noted by a notary public a fee called noting charge becomes payable to notary public.