Exchange riding
Of bills of exchange is when two or more parties to mutually exchange pull or accept without these changes, a trading business is based. Such a change is also known as a riding change.
General
The "Wechsel-Reitery" was already known in 1780 and was called "a fraudulent change maneuver". A historically well-known case of exchange riding is the Mefo exchange . The mutual exchange of bills of exchange aimed to make the creditworthiness of the actually economically weak participants appear more favorable. For this, the functions of the bill as were payment and, in particular loan funds utilized, as these changes are either used as cash for payment of a debt (see also endorsement ) or with a credit institution discountedcan be. Since these bills were not preceded by a commodity transaction, they are financial bills (as opposed to commodities or commercial bills ).
Procedure
The - often bad credit - issuer lets a drawee - just as often bad credit - accept a bill and submits the bill to his bank at a discount. He immediately has the only provisional - “ reserved ” - credited bill of exchange amount, which he transfers to the drawee shortly before the bill is due , so that the drawee can redeem the bill. The drawee, in turn, has in the meantime drawn a bill of exchange with a higher amount to the former exhibitor, who will receive the bill of exchange from the new exhibitor on the day of expiry for the purpose of redeeming the bill. The parties involved can prove their alleged creditworthiness by being able to cash the bills of exchange on time. The term of the mutually applied bills of exchange can be extended on the due date by issuing new bills of exchange (so-called bills of exchange prolongation ), which then leads to a repeated renewal of the term of the bills of exchange, if necessary.
Legal consequences
Riding bills of exchange is immoral under civil law ( Section 138 BGB ), so that the bills of exchange brought into circulation are void . In addition, it is punished as fraud ( § 263 StGB ), especially if a commercial bill of exchange was faked and the mutually drawn bills of exchange are not paid.
Today's situation in the European Union
With the transfer of responsibility for monetary policy to the ECB , the main refinancing operation replaced the earlier discount credit in January 1999. The discount credit has lost its attractiveness for credit institutions due to the elimination of rediscounting options for commercial bills at the Bundesbank . Commercial bills of exchange can only be refinanced as a deposit . For these reasons, discount credit is no longer relevant today. Since this also means that it is generally no longer possible to discount bills of exchange, bills of exchange riding in the EU has completely lost its former importance.
See also
Individual evidence
- Jump up ↑ Johann Christian Sinapius, Fragments from the Field of Action , Commercial Hefts, 1780, p. 286
- ↑ BGH NJW 1980, 931
- ^ BGH, judgment of November 13, 1956, Az .: StR 620/55
- ↑ Monthly Report of the Deutsche Bundesbank November 1998, p. 24
