| An old-fashioned term relating to a non-interest-bearing order in writing by one person to another to pay a specified sum to a specified person or bearer on a particular date. Bills of exchange are similar to cheques and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable. The person making the order or drawing the bill is known as the drawer. The person to whom the bill is addressed is the drawee (for example a bank). The person to whom the bill is payable is the payee. Also know as commercial bills, trade bills and eligible bills.
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