“Banker’s acceptance” means an instrument utilized in the financing of foreign trade, making possible the payment of cash to an exporter covering all or a part of the amount of a shipment made by him.

“Bill of exchange” means an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer (Uniform Negotiable Instruments Law); it is synonymous with a draft or acceptance when referring to a domestic transaction.

“Bond” means a certificate of indebtedness, in writing, and often under seal.

“Collateralize” means to secure a debt in part or in full by a pledge. A note is said to be collateralized if the debtor has deposited property with his creditor as part of full security for the payment of principal or interest.

Repurchase Agreement. A “repurchase agreement,” commonly referred to as a “repo,” is a short-term sale of securities by a dealer in government securities whereby the dealer agrees to repurchase the securities from the investor at a fixed or open maturity date. The underlying instrument is a U.S. government security; therefore, there is little risk of default. The holding period is tailored to the needs of the investor and can be established for very short periods, even a few days. Interest rates on repurchase agreements are tied to the rate on treasury bills, federal funds, and loans to government security dealers by commercial banks. [Ord. 82-15-O(A), 1982. Formerly §3.04.021].