Bill of exchange

A bill of exchange (poliçe) is a Turkish negotiable instrument containing the drawer's instruction to a third person, the drawee, to pay the stated sum to the payee. It rests on a three-party relationship between drawer, drawee and payee.

The drawee becomes liable on the instrument only by accepting it, which is done by signing the bill. Upon acceptance the drawee becomes the principal debtor. The bill may be transferred by endorsement, and non-payment opens the special enforcement routes reserved for negotiable instruments.

Although less common in Turkish practice than promissory notes and cheques, the bill of exchange forms the backbone of the statutory regime: the Commercial Code regulates it in detail and applies many of its provisions to notes and cheques by reference. It shares only its Turkish name with an insurance policy.