Approved by the order of the State committee on securities in case of the President of the Azerbaijan Republic of December 29, 2007 No. 191, Board decision of National Bank of the Azerbayzhdansky Republic of December 5, 2007 No. 38

Rules of accounting of bills of exchange in credit institutions

1. General provisions

1.1. These rules are prepared according to the Geneva Convention "About the Uniform Law about the Translated and Promissory Note" of 07.06.1930, the Civil Code of the Azerbaijan Republic, the Law of the Azerbaijan Republic "About banks", "Regulations on turnover of bills of exchange in the Azerbaijan Republic" of the State Committee on securities in case of the President of the Azerbaijan Republic of 02.02.2000, acts of normative nature of National Bank of the Azerbaijan Republic (further - National Bank) and establish rules of accounting of bills of exchange by credit institutions.

1.2. The concepts used in these rules have the following values:

1.2.1. accounting of the bill of exchange - transfer of the bill of exchange by the bill holder before maturity on it credit institution and obtaining instead of the amount which remained after deduction from the amount of the bill of exchange of the amount of discount.

1.2.2. discount - commission amount, collectable credit institution when accounting the bill of exchange. Discount will be determined by the following formula:

where:

D - discount amount;

K - amount of the bill of exchange;

T - term from day of accounting of the bill of exchange to day of payment on it (day of payment is not considered);

F - discount rate of credit institution.

1.2.3. person which provided the bill of exchange for accounting - the last endorsee according to the endorsement or the bill holder;

1.2.4. credit institution - bank or non-bank credit institution.

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