Retiring of Bill of Exchange
An acceptor might create the payment of a bill before its due date and discharge his liability; it is called as retirement of a bill. Generally the receptacle of the bill allows a concession called rebate to the drawee for the unexpired period of the bill.
Retiring a bill means making payment before the date of maturity. When the acceptor of a bill is arranged to make the payment of the bill before the due date, he may ask the receptacle to accept the payment, provided he receives some rebate or discount for the unexpired period. Such a rebate or discount is an expenditure to the party receiving the payment and gain to the party making the payment.
Common points of Retiring of Bill
- It is the procedure of paying the total of the bill before due date.
- The dispensation allowed to the acceptor is called rebate.
- Rebate is a loss to the payee and a achieve to the acceptor.