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View Full Version : Question/Suggestion- Bills of Exchange


thebarfly1
17-01-2009, 01:11 PM
Ok, i've just stumbled upon a section of a website belonging to one of Ireland's largest banking institutions, concerning the use of Bills of Exchange.

http://www.aibtradefinance.com/tf/frontBOEPage4.asp

I thought it seemed interesting so i decided to look up the Bills of exchange Act, 1882, which is still in effect in Ireland.

http://www.statutelaw.gov.uk/legResults.aspx?LegType=All+Primary&PageNumber=83&NavFrom=2&activeTextDocId=1072040

NOW, to use what i have read in the act, and to put it in context of what the banks offer to their customers....

OK. Some definitions in respect to bills of exchange....

“Bearer” means the person in possession of a bill or note which is payable to bearer.
And under the definitions of the Bill of Exchange act :
“Delivery” means transfer of possession, actual or constructive, from one person to another.
And, when somebody issues you with a bill, it must be "Delivered" to you, either by post or by notice etc.
This means, if i'm not mistaken, that once a bill pops in through your letterbox, you have in fact become the Bearer of the bill, because possession of it has been transferred to you, by delivery.

Now please correct me if i'm wrong, but it seems that the bank will accept a bill of exchange from you, and pay you 75% of its value as finance... And they will clear you debt (the 75% plus interest accrued on the 75%), when the other party in the contract pays up (ie: your electricity supplier, phone company etc)...

This seems crazy, but...... It's right there in black and white.

Seems worth a shot. What harm would it be to ask the bank to buy your bills from you for a little bit of credit? Worst they could do is just say no!

Anyway, my question, do any of you swell people out there who are already doing the freeman thang know if this could work?
(even though i'd hazard a guess that you wouldn't have to be a freeman, since it relates to an act)