D/A (documents against acceptance)
This refers to shipping documents which are presented to a bank on a collection basis to be passed to the Drawee (Importer) when they accept a bill of exchange. The bank holds the bill of exchange until the maturity date when they ask the Drawee (Importer) for authority to pay the Drawer (Exporter).
D/P (documents against payment) or CAD (cash against documents)
This relates to an Import Collection where a bank is requested to release shipping documents to the Drawee (Importer) against immediate payment.
Deferred Payment Credit
A Letter of Credit payable at a future determinable date in which a term Bill of Exchange is not required to evidence the maturity date.
A generic term for the range of traded instruments that have grown up around currency, securities and commodity trading.
The purchase of accepted Bills of Exchange, maturing at a future date, by a bank from the holder. A discount charge in the form of interest is applicable for the discount period and will be deducted at time of payment.
Where documents presented by an Exporter under a Letter of Credit do not comply with the terms of the Letter of Credit or are inconsistent with other documents presented.
The refusal to pay or accept a Bill of Exchange.
A Collection which contain ‘Commercial Documents’ such as Invoices, Shipping Documents, Insurance Documents, Official Documents etc., which may or may not be accompanied by financial documents.
Documentary credit (letter of credit)
A Letter of Credit is a conditional payment guarantee provided by an Importer's bank to the Exporter. The payment guarantee is conditional upon the Exporter providing documentary evidence of the shipment of goods in accordance with the terms of the L/C. The Importer's bank will guarantee the payment to the Exporter either immediately upon receipt of the correct documents or at some future determinable date.
Documents of Title
Documents (Bills of Lading) that confer the status of ownership upon the holder of the document e.g. the holder of a correctly endorsed bill of lading has effective ownership of the goods
Abbreviation for the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The main objective of Dodd-Frank is to promote the financial stability of the United States by improving accountability and transparency in the financial system;
The date on which a deal is entered into.
An alternative term used for a Bill of Exchange in a trade transaction, but can also refer to a bank cheque (as opposed to a customer cheque).
The party on a Bill of Exchange who is liable for payment (Importer)
The party that issues the Bill of Exchange (Exporter)