HOW TO FILL IN A BILL OF EXCHANGE

QUESTION

DEAR MR. OLD MAN

I’VE KNOWN YOU FOR MANY YEARS BUT UNTIL NOW I CONTACT YOU FOR YOUR HELP RELATING TO FILLING THE BILL OF EXCHANGE (B/E).

THE DETAILS OF L/C AS FOLLOWS:

• SENDER BANK OF THE L/C: HSBC HEAD OFFICE
• ALL SHIPPING DOCUMENTS INCLUDED BILL OF EXCHANGE MUST BE SENT TO HSBC THAILAND BRANCH.
.
B/E PRESENTED WITH DETAILS:

• DRAWN UNDER : HSBC HEAD OFFICE
• TO: HSBC THAILAND BRANCH
.
ACCORDING TO YOU, THE DRAWN UNDER MENTIONED ABV. (HSBC HEAD OFFICE) IS CORRECT OR MUST BE CHANGED TO HSBC THAILAND BRANCH ?
.
PLS EXPLAIN THE REASON WHY ?
.
THANKS N BEST REGARDS,
B.
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ANSWER

Hi,

On Bill of Exchange, field “DRAWN UNDER” is normally filled in with the name of the issuing bank and LC number, e.g., HSBC Head Office L/C No. 12345.

Field “TO” is always completed with the name of the drawee indicated in field 42a of the LC.

So, if the L/C is issued by HSBC Head Office and field 42a of the L/C indicates HSBC Thailand Branch as drawee, then the presented Bill of Exchange showing “DRAWN UNDER: HSBC Head Office” and “TO: HSBC Thailand Branch” is complying.

Please check the L/C terms and conditions.

Best regards,
Mr. Old Man