On this page, you can find a sample “Bill of Exchange”, which is drawn under a typical letter of credit transaction.
Bill of exchange can be defined as an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.
If you need further information regarding the bill of exchange, please read my previous post from this link: “Bill of Exchange“.
Please keep in mind that some banks mention “Bill of Exchange” as “Draft” in letters of credit.
So bill of exchange and draft have the same meaning.
Letter of Credit Details:
An unconfirmed letter of credit has been issued by Commerzbank AG, requires an at sight draft drawn on the issuing bank.
- Issuing Bank:
Commerzbank AG D-60261 Frankfurt am Main GERMANY - Documentary Credit Number:
LC304/3610/12IC - Applicant:
Import Hause Herrengraben 54 20459 Hamburg GERMANY - Beneficiary:
Export Handel Po Box 123 Amsterdam Holland - Currency Code/Amount:
EUR100000 - Available With … By …:
ABNANL2A (ABN Amro Bank NV, AMSTERDAM BRANCH)…BY PAYMENT - Drafts at …:
Sight - Drawee:
COBADEFF (Commerzbank AG, Frankfurt am Main BRANCH)
Sample Bill of Exchange / Draft
The exporter drawn the draft on the issuing bank. The bill of exchange is payable at sight.
Remaining details of the bill of exchange are:
- drawer is the beneficiary, who is also the exporter: Export Handel Po Box 123 Amsterdam Holland
- drawee is the issuing bank, who is also the importer’s bank that opened the letter of credit: Commerzbank AG D-60261 Frankfurt am Main GERMANY
- payee is also the beneficiary.
