Definitions for "Bankers' Acceptance"
Keywords:  draft, drawn, repre, postdated, holder
A money-market instrument used to finance international and domestic trade. It is a check drawn on a bank by an importer or exporter of goods repre- senting the bank's unconditional promise to pay the face amount of the note at maturity.
A draft drawn on a specific bank by a seller of goods to obtain payment of goods that have been sold to a customer. The customer maintains an account with that specific bank.
A draft or bill or exchanges accepted by a bank or trust company. The accepting institution guarantees payment of the bills, as well as the issuer.
A short-term negotiable (transferable) debt instrument issued by a non-financial company but with principal and interest guaranteed by a bank, issued at a discount with a fixed term, usually 30 to 60 days.
a money market instrument issued by a non-financial corporation but guaranteed as to principal and interest by its bank. The guarantee results in a higher issue price and consequent lower cost to the issuer.
A short-term bank paper, with which the repayment of the principal and interest is guaranteed by the issuer's bank.