Age Thomson
Ok guys, please help me with this. I think I am close, but I know I still have some gaps in my thinking to fill.
A typical bill sent to the person from a utility company, let's say it is a power bill in the amount of 400.00 for electricity use. The utility company starts this process by sending an incomplete bill of exchange, and it needs to be completed by a good administrator. As the administrator for the person to whom this bill has been sent, there would be a few options on how to take care of this. It could be bought with money of exchange which has been converted into money of account at a financial institution. It could be bought with a money order that is purchased at a post office or similar place. It could be paid with a cheque drawn from an account at a financial institution. It could be completed by an administrator and turned into a completed bill of exchange and submitted to the Bank of Canada. As I have been following the posts, it seems to me that there are some issues with the Bill of Exchange being sent to the Bank of Canada and the account at the utility company not being adjusted, but if it were some sort of government bill, then there does not seem to be that issue. So I think WHY??? There is also a question in my mind regarding the accounting that the utility company is using, and being paid already by the Bank of Canada, thus putting them into the position of not being able to accept and remit the Bill of Exchange to the Bank of Canada, nor being able to return it (and reveal all). In Pete's hydro situation for example, they won't return them.... So have they sold them? And, how would they sell them if they are only valuable to the beneficiary (hydro quebec)? Is this completed bill of exchange a valuable security instrument in the hands of anybody then? This all makes me wonder, why not just have the corporation pay the bill, and then bill the person for the same amount plus costs/time, to which the administrator could then complete that bill and have it get deposited into the corporation bank account as a deposit. This seems easy, but does it cover the whole situation adequately? The question still remains at that point of the utility company being "paid" twice by hitting the surety in advance from the public debt perspective as well as being paid from the account of the corporation.
Please help me fill in the blanks :)