Can an endorsed or discounted bill be renewed by the original drawer?
Bills of exchange have some specified time period. Drawee/acceptor has to make payments within that specified time period to Drawer/maker. But sometimes when they are not able to pay for the bill on the due date then he/she may ask the drawer to extend the period of credit. If the drawer agrees then the drawer may cancel the old bill and draw a fresh bill for the extended period which the acceptor accepts. Cancelling the old bill and drawing of a fresh bill for an extended period is called Renewal of Bill. For the extended period, drawee is asked to pay interest which can be paid in cash or added to the amount of a new bill.