A draft or bill of exchange accepted by a bank to guarantee payment of the bill.

A money market instrument representing time drafts drawn on and accepted by a banking institution, which in effect adds its credit to that of the importer or holder of merchandise.

A time draft drawn on and accepted by a bank. Once accepted, the draft becomes a primary obligation of the accepting bank to pay at maturity. Compare "Acceptance."

An order to pay a specified amount of money to the holder on a specified future date. The bank that accepts this draft assumes responsibility to make payment on the draft at maturity. BAs are usually created to finance the storage or shipment of foreign or domestic goods.

A bankers' acceptance starts as an order to a bank by a bank's customer to pay a sum of money at a future date, typically within six months. At this stage, it is like a postdated check. When the bank endorses the order for payment as "accepted", it assumes responsibility for ultimate payment to the holder of the acceptance.

A short-term debt instrument issued by a corporation, but guaranteed by a bank, and sold on a discounted basis.

A type of short-term negotiable commercial paper issued by a non-financial corporation but guaranteed as to principal and interest by its bank. The guarantee results in a higher issue price and consequent lower yield.

( acceptation bancaire). Short-term negotiable commercial paper issued by a non-financial corporation but guaranteed by a bank.

Short-term bank paper with the repayment of principal and payment of interest guaranteed by the issuer's bank.