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TeachMeFinance.com - explain Bank bill historic definition... Bank bill -- This term is an abbreviation of bankable bill;
it means a bill of exchange or draft that is of such good quality
that a bank will readily discount (buy) it. Accordingly, it
also applies to a bill when it bears the indorsement of a bank.
The usual manner in which a bank becomes an indorser of a
bill is in selling a bill which it holds instead of retaining it
until maturity. The reason for selling is that the bank desires
cash or that it can make a satisfactory profit by disposing of it.
The bill brings a better price (the discount is less) with the
bank's indorsement than it would bring without the bank's
indorsement. The term bank bill or bank's bill also applies to a bill of exchange
or draft issued by a bank and payable by a correspondent
of the bank. The term bank bill also is often used in place of bank note
(money).
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