banker's acceptance

A banker's acceptance is an irrevocable obligation of an issuing bank and the borrower whereby both are liable for payment. They are used in domestic and international commerce to finance the shipment and storage of goods or to facilitate dollar exchanges with foreign banks. Banker's acceptances are issued in a wide variety of principal amounts. Maturities can be up to 180 days, but usually are for 30-60-90 days.

bank reconciliation » bank term loan » bank trust department » banker's acceptance » banking » banking act of 1933 » bankrupt

Investment Glossary - Investment Articles - Investment Directory