RE-EXCHANGE, contracts, commerce. The expense incurred by a bill's being
dishonored in a foreign country where it is made payable, and returned to
that country in which it was made or indorsed, and there taken up; the
amount of this depends upon the course of exchange between the two
countries, through which the bill has been negotiated. In other words,
reexchange is the difference between the draft and redraft.
2. The drawer of a bill is liable for the whole amount of reexchange occasioned by the circuitous mode of returning the bill through the various countries in which it has been negotiated, as much as for that occasioned by a direct return. Maxw. L. D. ii. t.; 5 Com. Dig. 150.
3. In some states, legislative enactments have been made which regulate damages on reexchange. These damages are different in the several states, and this want of uniformity, if it does not create injustice, must be admitted to be a serious evil. 2 Amer. Jur. 79. See Chit. on Bills. (ed. of 1836,) 666. See Damages on Bills of Exchange.