Finance bill. A bill of exchange (draft) drawn in connection with a financial operation, as an issue
of stock or bonds; or a reorganization or readjustment; or an underwriting.  The term is often
applied to a bill issued as a loan. For example, a person in New York borrows £50,000 in sterling
in London. The lender in London sends to the borrower in New York a letter formally authorizing
the borrower to draw on the lender for the amount named. The stipulation is (usually) made that
collateral for the loan (usually stocks or bonds) shall be attached to (shall accompany) the draft.
The stipulation may be that the collateral shall be deposited in trust in New York, in which case
only a memorandum of the collateral is attached to the bill. By leaving the collateral in New York
substitution or change in the collateral can be more readily made than if the collateral is sent to
London. Substitution can, of course, only be made by consent of the lender in London. The loan
might be obtained in Paris, in which case it would be in francs; or it might be obtained in Berlin, in
which case it would be in reichsmarks (marks). The bill of exchange is sold by the borrower the
same as any other bill of exchange to obtain the money represented by it.