accept , discount, against, dishonoured, attached , hypothecation, credit, draw, ownership, amount
When a Letter of Credit has been confirmed, the agent bank in the seller’s country usually asks for the shipping documents, and often corite to the seller to say that they are willing to (21) a draft on them for the (22) . This draft (another name for Bill of Exchange) is often (23) to the shipping documents and is called a Documentary Bill of Exchange. Banks often state that the seller can (24) on them for the amount of the Credit.
A buyer or his bank may ask the seller if he is willing to allow them a period of 30, 60, or 90 days to pay. They may write. "can you present your drafts for 60 d/s" this is a form of (25) and allows the buyer time to pay. The agent bank will normally accept a draft (26) documents, because they need them to make sure that the title to (27) has been transferred.
Some times the bank demands a letter of (28) so that they have the right to sell the goods if the Bill of Exchange is (29) , that is, if the buyer or his bank do not pay. This does not apply to irrevocable documentary credit.
However, the bank can (30) the Bill of Exchange by deducting the interest for the period the draft has to go before maturity.

Assume that the maturity date of the Dorman note is January 18, 1995 and that General Electric discounts the Dorman note at First City National Bank on December 9, 1994. The discount period--which is the number of days from the date of discounting to the date of maturity (this is the period the bank will hold the note) -- is 40 days; 22 days in December, and 18 days in January. Assume the bank applies a 12 percent annual interest rate in computing the discount value of the note. The bank will want to use a discount rate that is higher than the interest rate on the note in order to increase its earnings. GE may be willing to accept this higher rate in order to get cash quickly. The discounted value, called the proceeds, is the amount that GE receives from the bank. The proceeds are computed as follows:
General Electric’s entry to record discounting the note is:
Dec. 9, 1994cash

$ 15 170
Note receivable
Dorman Builders
$ 15 000
Interest Revenue

$ 170

TO RECORD DISCOUNTING NOTE RECEIVABLEAt maturity the bank collects 15 375 from the maker of the note, earning 205 of interest revenue.
Observe two points in the above computation: (1) The discounting is computed on the maturity value of the note (principal plus interest) rather than on the original principal amount, and (2) the discounting period extends backwards from the maturity date (January 18, 1995) to the date of discounting (December 9, 1994).