a money market instrument used to finance imports and exports
a money market instrument which is used to finance import or export transactions
a time draft drawn on a commercial bank by a borrower usually in connection with an international commercial transaction (to finance the import, export, transfer or storage of goods)
A time draft drawn by a party (the beneficiary if issued under a Letter of Credit), drawn on and accepting bank will be the same as the bank the draft is drawn on. However, this is not a requirement and a draft drawn on one bank can be accepted by another bank. In this situation the beneficiary would look to the accepting bank for payment at maturity. Acceptance of the draft is accomplished by writing the word "Accepted" across the face of the draft followed by the date and signature of a duly authorized signer of the drawee bank. By accepting a time draft, a bank denotes its commitment to pay the face amount to the rightful holder who presents it at maturity or to pay the draft at a discount if presented prior to maturity. Bankers Acceptances are subject to various strict Federal Reserve regulations.
Short-term loan to companies that export worldwide. It is secured by goods that are to be sold.
(BA). A draft or bill in exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the issuer bid.
An acceptance that has a bank as its drawee.
A draft calling for payment at a future date on which the drawee is a bank, and the bank has agreed to pay by signing "accepted" on the draft.
Bankers acceptances are negotiable time drafts, or bills of exchange, that have been accepted by a bank that, by accepting, assumes the obligation to pay the holder of the draft the face amount of the instrument on the maturity date specified. They are used primarily to finance the export, import, shipment, or storage of goods.