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The bill is the short form of bill of exchange . section 5 negotiable instrument act 1881 define bill of exchange as instruments in writing containing an unconditional order signed by maker, directing certain person to pay certain sum of money only,

classification of bills : bills used under bill finance can be classified depending upon the place where drawn , period and thier nature as under:

place period nauture

1. inland bills 3.demand bills 5. clean bills
2. foreign bills 4. usance bills 6. documentary bills

Holder: section 8 of the NI act defines the word 'holder' . a holder of bill of exchange means a person entitled in his own name to possess the bill and recover the amount represented by bill.

Holder in due course : according to section 9 NI act holder in due course means any person who for consideration became the possessor of the bill (that is a person to whom the bill is transferred.

Payment in due course : according to section 10 NI act payment in due course means payment in accordance with the apparent tenor of bill or exchange to the holder or holder in due course in good faith and without negligence.

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