Types of bills: their characteristics and properties

For execution of credit-settlement transactions with securities, the most widely received bill and check. The bill is a security that is drawn up in accordance with the established form and gives the billholder the right to demand from the person who has committed to pay the bill specified in the bill amount. The bill in the modern money market can fulfill the function of money as a means of payment and circulation. Most often this happens in the form of a loan.

Any promissory note transaction is based on the trust of sellers of goods and services to buyers, because when buying, they receive not cash, but a promise to pay a certain amount within a fixed period. In spite of the fact that the bill is a legally issued paper, it does not have any public guarantees, and the seller receives proof of its payment only on the day of its cashing. Public guarantees are provided on bills issued by the state, and the subject of such a bill is money, not goods and services.

Characteristics of the bill will be incomplete without indicating its forms. The most common types of bills: simple or solo and transfer or draft. A simple bill contains the promise of the billholder to pay the amount indicated in the bill to the holder of the note within the time specified in the security. In the bill of exchange bills of subjects of the transaction there are already three: it contains the promise of the drawer (drawer) to the drawee (payer) to pay the specific amount specified in the security to a third party. The drawer proposes to pay the debt to its debtor, that is, it transfers (traces) the repayment of the debt to another person. That is why such a bill received the name of a transfer. These types of bills are widely used in the performance of a variety of loan transactions.

By the nature of the transaction, the following types of bills are singled out: commercial, financial, friendly and bronze. Commodity or commercial bill - this is a security that is used in the preparation of the sale of goods, that is, there is a sale of goods with a deferred payment. A commercial bill, in turn, can be simple and transferable.

A financial instrument is used to make a cash loan. It can also be simple and translated. The Treasury, banks, enterprises, authorities, individuals can issue such a security. A friendly bill does not imply any deal at all. This security is used to pay for goods or services between the organization and the supplier. A friendly bill can also be issued by one organization to another, in order to receive real money on the bank or to pledge it as security later on. A bronze bill is also the absence of any transaction, but it also subscribes to a non-existent person. Such a security does not have a payer.

There are also types of bills by issuer or drawer. These are public and private bills. State securities are issued, of course, by the state and have the following subspecies: municipal and treasury. They are issued, respectively, by local authorities and the Treasury. Private bills are corporate and promissory notes of individuals. Corporate firms or banks issue. Almost all government bills are related to simple financial bills. Private bills are both simple and transferable.

Bills can also be divided by maturity: for securities on demand, on securities on a certain date from the presentation, on a certain date from the drawing up.

In addition, there are discount bills and interest. In a discount bill, interest is included in the bill amount, and the billholder receives a certain income in the form of a discount (the difference between the purchase price of a bill and a bill of exchange). In the text of the interest bill, the percentage that is charged on the bill amount at the time of presentation of the bill is indicated.

On the territory of the Russian Federation, promissory notes by type of currency are divided into ruble and foreign currency.