Parties to Bill of Exchange

The following are the parties to a bill of exchange:

·         Drawer: The maker of the bill of exchange

·         Drawee: The person on whom the bill is drawn

·         Acceptor: The person who accepts the bill, usually drawee but sometimes a stranger may accept on behalf of the drawee

·         Payee: The person to whom the sum stated is payable. It could be the drawer or any other person

·         Holder: Either the original payee or any other person to whom the payee has endorsed the bill. In case of a bearer bill, the bearer is the holder

·         Endorser: The holder, who endorses the bill to anyone else

·         Endorsee: The person to whom the bill is endorsed

·         Drawer in case of need: The person who may be resorted to in case of need

·         Acceptor for Honour: A person who, on refusal by the original drawee to accept or to furnish better security when demanded by the Notary, accepts the bill in order to safeguard the honour of the drawer or any endorser.

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