TRADING DOCUMENT PROCESSING
Bill of Exchange, promissory notes are means of payment used by Banco Nacional de Cuba, mainly for debt extinguishment from commercial traffic.
A bill of exchange is an unconditional payment order. A promissory note is a commitment of payment. Both are credit titles. The person who issues a bill of exchange can provide his client with the possibility of postponing a payment and the issuer of a promissory note has the possibility of paying deferred.
The person who issues a bill of exchange acts as a drawer and who is obliged to payment acts as a drawee. In this context appears a third party who is the beneficiary, the one who receives the payment. The issuer of a promissory note will be the subscriber and it is obliged to do the payment to the beneficiary.
In commercial practice frequently happens that the drawer and the beneficiary are the same person.
The beneficiary keeps the bill of exchange and through an acceptance act has the possibility of knowing in advance if the drawee will make it effective at due. If the drawee would not accept the bill of exchange or if he would not pay it at due, the beneficiary may protest the document before a notary to claim to the drawer and if this action is not successful, he demands the payment through court.
Collection management when the drawee (the debtor) is not a bank´s client:
In these cases, the client must hand in the bills of exchange to the Negotiations and Payment Management office from the Documentary Credit Direction or to the Business Management Direction as it corresponds.
The bank provides services of bank guarantee for bill of exchange accepted or promissory notes issued by Banco Nacional de Cuba´s clients.
Bill of exchange discount:
As it is a title of value and being an unconditional payment order, Banco Nacional de Cuba may use the bill of exchange in the negotiations or operation processing and when taking to discount, provides the seller or beneficiary of a commercial credit with an advance payment in the collection of debts.