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Herald of the National Bank of Ukraine, May 2000

VIII. Read the memorandum (memo) written by the Kyiv National University teacher, who is responsible for the students practicing at one of the nbu departments (International Banking Department).

1) Memo 1

To: the students A.Kovalenko and T.Ivanchenko

From: Mr.Osadchiy

  1. Give the definition of the b/e (bill of exchange).

  2. Study thoroughly the letter advising dispatch of a bill. Panton Manufacturing Ltd have completed an order for a Dutch customer. They now advice him that the agreed bill of exchange has been sent off.

  3. Answer my questions:

  • Where has the b/e been sent?

  • When should the bill be paid?

  • How can Mrs. Haas get the shipping documents?

Thanks.

Your teacher,

Mr.Osadchiy

Panton Manufacturing Ltd.

Panton Works, Hounslow, Middlesex, TW6 2BQ

Tel: 081 3530125 Registered No. England 266135

Telex: 21511

Fax: 081 353 6783

Mr. B.Haas, 2nd March 20-

B.Haas B.V.,

Heldingstraat 180-2,

Postbus 5411,

Amsterdam 1007,

NETHERLANDS

Dear Mrs Haas,

Order No. 8842

Thank you for your order which has now been completed and is being sent to you today.

As agreed we have forwarded our bill, No. 1671 for £860.00 with the documents to your bank, Nederlandsbank, Heldringstraat, Amsterdam. The draft has been made out for payment 30 days after sight, and the documents will be handed to you on acceptance.

Yours sincerely,

D. Panton

Managing Director

B/E No. 1671 5th March 20—

30 days after sight pay to the order of

Panton Manufacturing Ltd. London

Eight hundred and sixty pounds only

value received payable at current rate of exchange for Banker's sight drafts on London.

To. B Haas B.V.

Heldrmgstraat 180-2

Amsterdam 1007 Signed ________________

Managing Director

2) Memo 2

To: the students A.Kovalenko and T.Ivanchenko

From: Mr.Osadchiy

  1. Here is the bill mentioned in the previous memo. The bill has already been accepted by the drawee, who has named a bank in London, which she wants to use to clear the bill.

  2. Study the bill and give your answers to the following questions:

  • What type of draft is it?

  • How much is it for?

  • Who is the payee?

  • When must the draft be paid?

  • What is the rate of exchange?

Thanks.

Your teacher,

Mr.Osadchiy

3) Words to remember. Give the translation:

a commercial bank

a merchant bank

to open an account

a current/deposit/savings/budget

account

a specimen signature

a balance

a transaction

Giro system

a cheque/Eurocheque/traveller's

cheque

a cheque card

cash card

cash dispenser

a credit card

to honor a cheque

to cancel a cheque

to stop a cheque

a paying-in/withdrawal/transfer slip

notice of withdrawal

a counterfoil

a cashier

negotiable securities

a guarantor

a loan

an overdraft

to overdraw

overdraft facilities

to call in an overdraft

interest

minimum lending rate (MLR)

inflation

bank charges

a standing order

a direct debit

overseas customer

credit status

confirming houses

new issue/bullion/Euro-bond market

shipping/insurance/foreign exchange

market

a bill of exchange

a drawer

a drawee

a sight draft/bill

days after sight (d/s)

documents against payment (D/P)

documents against acceptance (D/A)

a foreign bill

an inland bill

a clean bill

to discount a bill

to endorse a bill

a dishonored bill

to protest a bill

a letter of credit (L/C)

a revocable/irrevocable letter of credit

an importer

an exporter

an agent

confirmed credit

commission

confirming bank