(a) Dishonour of a bill – When the accepter of the bill refuse to pay the amount of the bill on the date of maturity or becomes insolvent, it is called dishonor of the bill
(b) Noting changes – To establish the fact that the bill was properly presented and dishonored, the bill is usually handed over to person called ‘Notary public’ The notary public charges a small fee for the services rendered by him, which is called ‘Noting changes’
(c) Discounting of bill – Discounting means encashing the bill before the date of its maturity or borrowing from the bank on the security of the bill. Bank deducts a certain amount of discount from the face value of the bill and pays the balance to the person discounting the bill.
