CHAPTER 13
Glossary T H E F O L L O W I N G T E R M S are excerpted from the Dictionary of International Trade, also by Edward G. Hinkelman and published by World Trade Press.
A bill of exchange accepted by the drawee (acceptor) by signing it (acceptance) on its face. In doing so, the drawee commits to pay the bill upon presentation at maturity. A C C E P T I N G B A N K A bank that by signing a time draft accepts responsibility to pay when the draft becomes due. In this case, the bank is the drawee (party asked to pay the draft) but only becomes the acceptor (party accepting responsibility to pay) upon acceptance (signing the draft). See acceptance; bill of exchange. A C C E P T O R The party that signs a draft or obligation, thereby agreeing to pay the stated sum at maturity. See A C C E P TANCE; BILL OF EXCHANGE. A D V I C E (banking/letters of credit) The forwarding of a letter of credit, or an amendment to a letter of credit to the seller, or beneficiary of the credit, by the advising bank (typically the seller’s bank). The term “advice” connotes several types of forms used in the banking field. Generally speaking, an advice is a form of letter that relates or acknowledges a certain activity or result with regard to a relations with a bank. Examples include credit advice, debit advice, advice of payment, and advice of execution. In commercial transactions, information on a business transaction such as shipment of goods. A D V I S I N G B A N K The bank (also referred to as the seller’s or exporter’s bank) that receives a letter of credit or amendment to a letter of credit from the issuing bank (the buyer’s bank) and forwards it to the beneficiary (exporter/seller) of the credit. A F T E R D A T E A notation used on financial instruments (such as drafts or bills of ACCEPTED DRAFT
exchange) to fix the maturity date as a fixed number of days past the date of drawing of the draft. For example, if a draft stipulates “60 days after date,” it means that the draft is due (payable) 60 days after the date it was drawn. This has the effect of fixing the date of maturity of the draft independently of the date of acceptance of the draft. See ACCEPTANCE; BILL OF EXCHANGE. A F T E R S I G H T A notation on a draft that indicates that payment is due a fixed number of days after the draft has been presented to the drawee. For example, “30 days after sight” means that the drawee has 30 days from the date of presentation of the draft to make payment. See bill of exchange. A I R W A Y B I L L (also airbill) (shipping) A shipping document used by airlines for air freight. It is a contract for carriage that includes conditions of carriage including such items as limits of liability and claims procedures. The air waybill also contains shipping instructions to airlines, a description of the commodity, and applicable transportation charges. Air waybills are used by many truckers as through documents for coordinated air/truck service. Air waybills are not negotiable. The airline industry has adopted a standard formatted air waybill that accommodates both domestic and international traffic. The standard document was designed to enhance the application of modern computerized systems to air freight processing for both the carrier and the shipper. See bill of lading; negotiable. A M E N D M E N T (law/general) An addition, deletion or change in a legal document. (banking/letters of credit) A change in the terms and conditions of a letter of credit (e.g.,
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