Acceptance Supra Protest
Definition
When a third party steps in to accept or pay a dishonored bill of exchange in order to protect the reputation of the original drawer or endorser.
Example
Example 1:
A Lagos trader’s bill of exchange is rejected by the original payer, embarrassing the business, a trusted associate steps in to honor the bill on his behalf, saving his reputation with his suppliers and protecting his credit standing.
Example 2:
A New York exporter’s bill of exchange is dishonored by the buyer, a third-party financier steps in, accepting the bill through acceptance supra protest to protect the exporter’s credibility and keep the trade relationship intact.