Livestock Economics, Marketing and Business Management

MATURITY OF A BILL OF EXCHANGE

• The maturity of a bill is the date on which it falls due for payment.
• A bill not payable on demand, at sight or on presentation, is at maturity on the third day after the day on which it is indicated to be payable. These three days are known as Days of Grace. These are added to the term of the bill and the bill becomes due and payable on the last day of grace.
• Where a bill is payable at a specified period after date, the time of payment is determined by excluding the day from which the time is to run and by including the day of payment.
• For example, a bill of exchange drawn on 15^th March at three months after date would mature on 18^th June.