Legal Definitions - reexchange

Definition: Reexchange refers to:

1. A second or new exchange.
2. The process of recovering the expenses that resulted from the dishonor of a bill of exchange in a foreign country.
3. The expenses themselves.

Examples:

• John sent a bill of exchange to his business partner in Japan, but it was dishonored. He had to pay for the reexchange of the bill.
• After the dishonor of the bill of exchange, the bank charged a fee for the reexchange process.

The examples illustrate the second definition of reexchange, which refers to the process of recovering the expenses that resulted from the dishonor of a bill of exchange in a foreign country. In both examples, the bill of exchange was dishonored, and the person had to pay for the reexchange process to recover the expenses.