You Are the Manager of the York Trust Company

Essay

You are the manager of the York Trust Company.Nadia,one of the company's customers,has drawn a bill of exchange upon her account with the company.That bill is for $50 000 and it names Seth as the payee.The bill is due on August 31.On June 1,Seth appears at your office seeking acceptance of the bill.Describe the process and effect of acceptance.As a matter of risk management,what special precaution should you exercise if you decide to accept the bill on behalf of the trust company?