To order bill of lading (B/L),
Definition of To order bill of lading (B/L):
B/L that is written (drawn) To Order of the consignee and is, therefore, a negotiable-instrument of title. Ownership of goods covered under it can be transferred by one party to another by signature (endorsement) and delivery of the B/L. Generally, goods which have not been paid-for in advance (goods sent under an open-account or a letter-of-credit) are shipped under To Order B/L which is of two types (1) To Order, Blank Endorsed: not consigned to any named party but To Order of the consignor, with the intended-consignees name given under notify party. The consignor must stamp and sign (endorse) this B/L so that its title can be transferred. (see blank endorsement). (2) To Order, Bank: consigned to a bank with the intended consignees name given under notify party. The bank endorses the B/L to the intended consignee against payment of (or a pledge to pay) the amount of the accompanying bill of exchange. To Order B/Ls are used commonly in letter of credit transactions, and may be bought, sold, or traded, or used as security for borrowing money from banks or other lenders.
Meaning of To order bill of lading (B/L) & To order bill of lading (B/L) Definition