What is retiring is bill under rebate
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The drawer or the holder may agree to pre-payment. This is called the retirement of bills of exchange. In order to encourage the drawee to pay the bill before the maturity date, the drawer gives him a discount. This discount is known as a rebate on bills.
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Retiring is bill under rebate:
• If the acceptor of a bill of exchange has adequate funds, he may wish to meet the bill before its maturity date.
• He could ask the bill's owner to accept payment before the due date.
• If the holder accepts his proposition (which he does), he will cancel the bill.
• "Retirement of a bill of exchange" is the term for such a withdrawal.
• If the acceptor of a bill of exchange has adequate funds, he may wish to meet the bill before its maturity date.
• He could ask the bill's owner to accept payment before the due date.
• If the holder accepts his proposition (which he does), he will cancel the bill.
• "Retirement of a bill of exchange" is the term for such a withdrawal.
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