(a) ) Dishonour of a bill – When the accepter of the bill refuses to pay the amount of the bill on the date of maturity or becomes insolvent, it is called dishonour of the bill.
(b) Noting charges – To establish the fact that the bill was properly presented and dishonored, the bill is usually handed over to a person called ‘Notary public’ The notary public charges a small fee for the services rendered by him, which is called ‘Noting charges’.
(c) Discounting of bill – Discounting means encashing the bill before the d) ate 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
(d) Endorsement of bill of exchange- Endorsement of bill of exchange means transferring the ownership of bill of exchange by its holder in favour of his creditor. Since a bill of exchange is a negotiable instrument, its ownership can be transferred by endorsement. Endorsement is done by writing at the back of the bill of exchange the name of the person in whose favour the ownership is being transferred and it is signed by the holder.
