Simple and translated bill. What is the difference?

A bill is a type of security that is a Promissory note of a legally established form. A bill is considered an indisputable and unconditional trade document, it can be of two types: simple and transferable. A simple bill is an obligation of the creditor to pay the specified amount of money to another person. A bill of exchange is a document containing an order to make a payment to another person, which the acceptor must perform.

A bill of exchange must be drawn up in a strictly prescribed form in compliance with the law, it can be used for trade settlements, including international ones. The creditor issuing the bill of exchange is called the drawer, the borrower who will pay the bill is called the drawee, and the recipient of the amount noted in the bill is the remittee. And as a remitter, the bill maker can be himself. The bill of exchange was created, first of all, to simplify trade transactions. For example, for the buyer's calculations, the seller could use a bill, and the payment will be made either by the bank or by a third party.

A bill of exchange must display the following entries:

• The word "Bill" should be written in the text of the document and in the language in which the document is drawn up.
• A simple proposal to pay a certain amount of money.
• Term of payment.
• Name of the payer.
• Indication of the institution where the payment is to be made.
• These persons under whose order the payment must be made.
• Place and date of drafting the bill.
• Personal signature of the maker.

In the event that the document does not contain at least one of the above points, the bill can be considered invalid. At the same time, there are a number of abnormalities.

1. If the bill does not specify the exact date of payment, then it is paid at sight.
2. If the bill does not specify the exact place of payment, then it becomes the payer's address.
3. If the bill does not specify the place of drawing up the bill, it means that this will be the address of the drawer.
4. If on the bill there are signatures of third parties that can not be obligated by the bill, then the signatures will be considered invalid.

The bill of exchange is presented to the payer in order to obtain his consent to pay the bill.

The main function of a bill of exchange is to certify bill rights, it is often classed as securities, since it is the bill of posting that is the legal fact that underlies the creation of certain property rights. Turning to the legislation, it becomes clear that the transferable interest bill must contain an unreasonable offer to pay the right amount. Most often, bills of exchange are used to raise debts under loan agreements.

For today in Russia more simple promissory notes are more actual, than transferable. The reasons for the unpopularity of transfer payments in the Russian Federation are:

1. Simple bills, unlike bills of exchange, are exempt from tax on securities.
2. Bills of exchange are much more complicated in registration.
3. Additional complications for bills of exchange create an acceptance procedure.
4. Low level of legal literacy of the population.

Despite the above disadvantages, the use of bills of exchange has an undoubted advantage over simple bills. For example, they can be used in legal transactions in the form of a letter of credit, when the counterparties do not know each other well. In drawing up a bill of exchange, two to four persons can participate. A feature of a bill of exchange is the fact that it can pass from the owner to the owner, but only the last of them should become a real presenter.