Issuer of a bill of exchange

A bill of exchange is a security that represents money. In addition to strict formalities, the drawer undertakes or undertakes a payment obligation in accordance with the strictness of the bill of exchange.

A bill of exchange is a deed that can be issued on a piece of paper by observing the formalities in accordance with national bills of exchange laws (the Geneva International Bill of Exchange Convention or Anglo-Saxon law). A bill of exchange issued in this way is classified as a security, its actors, movements, and the enforceability of the promissory note claim after its issuance are governed by the national bills of exchange laws.

The right to initiate a bill of exchange transaction always belongs to the issuer of the bill of exchange of exchange, if it issues a foreign bill of exchange or a foreign bill of exchange for its own decree. The issuer of the bill of exchange is called the issuer of the promissory note act.

As the issuer, upon signing the foreign bill of exchange, we call on the recipient to pay the third party (the beneficiary) also named on the promissory note. On the other hand, as the issuer, we name ourselves as the beneficiary on a foreign promissory note for our own decree. (In the case of international sales transactions, the exporter addresses the bill of exchange to the importer, in the latter case with the request "Pay me ...".) On the other hand, as the issuer of our own bill of exchange, we promise payment on the promissory note with our signature.

The issuer of a foreign bill of exchange or the drawer of one's own bill of exchange remains responsible for the payment of the amount of the bill of exchange at maturity. However, as the issuer of a foreign bill of exchange, the strength of our payment obligation depends on whether the drawee confirms his payment obligation by signing the foreign bill, i.e. whether he accepts the bill. 

If the drawee accepts the promissory note, we are no longer the main obligee (direct promissory note debtor) of the foreign bill of exchange note, our payment obligation is secondary to the acceptor, and we become a so-called underwriter (together with the possible promissory note guarantor and subsequent back signatories, the promissory note assignors).