Deed of Assignment

A banking arrangement between the beneficiary of a letter of credit and a third party - usually the supplier of the goods - who requires an assurance of payment.

The beneficiary of the credit is the assignor: part of the proceeds of the credit are irrevocably assigned to the assignee.

Deed of protest

Document evidencing that a protest has been carried out.

In a collection, a bank may be asked to do this if a bill of exchange is not paid, accepted or honoured at maturity.

Delivered At Place (DAP)

Incoterms 2010 rule - can be used for all transport modes.

Seller delivers goods to the named place, ready for unloading from the arriving conveyance,
bearing the risk for the goods and paying all costs up to that point

Buyer is responsible for clearing goods for import and paying duty and taxes
(if applicable.)

Delivered at Terminal (DAT)

Incoterms 2010 rule - can be used for all transport modes.

Seller delivers goods to the named place, unloaded from the arriving conveyance,
bearing risk for the goods and paying all costs up to that point.

Buyer is responsible for clearing goods for import and paying duty and taxes
(if applicable.)

Delivered Duty Paid (DDP)

Incoterms 2010 rule

Seller pays all costs (transport, insurance, import and export duties) associated with delivering
the goods to a named place, often the buyer's premises.  

Seller bears all risks up to the point of delivery.

Demurrage

Charges made for storing goods at the port of destination while awaiting collection by the buyer.

These may be incurred unintentionally if the goods arrive before the buyer has received the document of title.

Discounting of bills

Where the payee of a term bill requires payment immediately, a bank may discount the bill, i.e. make immediate payment, deducting an amount for interest over the term of the bill.

Document of title

A transport document (usually a bill of lading) which (when appropriately made out) entitles the bearer to claim the goods from the carrier.

Documentary collection

Procedure in which banks in the buyer's and seller's country act for the seller by presenting commercial documents to the buyer along with a payment demand (usually a bill of exchange).

Documentary credit

Another name for a letter of credit.

Draft

Another name for a bill of exchange.

Drawee

Party on whom a bill of exchange is drawn, i.e. who is required to make payment.

In the context of collections, usually the buyer.

In letters of credit, the drawee is usually a bank.

Drawer

Party drawing up the bill of exchange. Usually also the payee, to whom the money is due.

Often used synonymously with 'seller'.