Bill is an unconditional debt receipt

A bill is a document certifying the obligations of the drawer to pay the specified amount of money in a specified period. This type of securities is, in fact, an abstract monetary obligation, issued strictly in the prescribed form. Such documents are unconditional and indisputable receipts.

The bill legislation of practical all countries is based on the bill of exchange convention signed in Geneva in 1930.

By the nature of the transaction, in which bills are involved, they are divided into the following types. A commercial bill is a document that arises during transactions of the sale of goods, the provision of services and the performance of custom jobs on credit. It is accompanied by additional documents confirming its commercial nature. Financial - issued by the Ministry of Finance and banks to raise additional funds.

There are two main types of these securities. A simple bill is an unconditional obligation of the drawer to pay the amount specified in the document to the bill holder on demand or within the specified period. At the reference of the document to the original participants - the drawer and the acceptor - other persons can also join: the endorsers and avalists.

A bill of exchange is a document with the order of a drawer to the debtor to pay the amount prescribed to it to the person (to whom the right to receive money is transferred under a bill of exchange ). The drawer is the drawer, the drawee is the payer. Such a bill has the power of a solidary obligation: each subsequent billholder becomes liable for payment together with the debtor. A transfer inscription certifying the transfer of such right to another person is called an endorsement.

Proceeding from the principle of profitability, bills are divided into interest (paid face value and interest) and discount (only the nominal value is paid, they are treated at a discount from their nominal value).

The class of bills is very diverse. On the basis of the issuer, these securities are of two types. A treasury bill is a short-term promissory note issued by the government or the Central Bank with a maturity of 90 or 180 days. Security bills are a means of ensuring the fulfillment of obligations under the transaction. They are used to secure loans, if there is uncertainty about the borrower's obligation.

A private bill is issued by financial groups, corporations, commercial banks. Such securities serve commodity and financial transactions. They reflect the relationship of the loan at interest. With their help, the issuance of loans, the receipt of budgetary financing, the transfer of taxes, wages, exchange of money. This bill has varieties. A friendly bill is issued by one person to another without being accompanied by an intention to pay it, but only for the purpose of mutual offset in the bank. They exchange persons who are in confidential (friendly) relations, in order to subsequently pay bail to the bank and get money for it or pay for the goods. A bronze ("blown") bill is a paper for which there is no real transaction and financial circumstance, and at least one of the persons participating in such an operation is fictitious. On such a paper, you can get money from the bank or use it to pay off debts on commodity transactions or other financial obligations. These bills are used when the financial situation of the debtor is difficult or fraudulent. Such documents falsify the money turnover.

Cash-free bills in circulation lead to negative phenomena in the economy, divert resources from trade turnover, lead to a depreciation of cash. In this regard, there is the concept of "bill inflation".