Clearing - Definition - Law Dictionary Home Dictionary Definition clearing

Definition :

Clearing, a among London bankers a method adopted by them for exchanging the drafts of each other's houses, and settling the difference. At fixed hours, each day, a clerk from each banker attends at the clearing-house, bringing all the drafts on the other bankers which have been paid into his house during the day, and delivers to each of the other clerks the obligations he has against his house, receiving from each the obligations due from his own. Balances are struck at the end of the day, the clerk to the Clearing House making up the accounts between each bank. The balances are not paid to or received from the other bankers as formerly, but are settled with the Clearing House, which keeps an account itself at the Bank of England. There is also a Country Clearing House. Consult McLeod on Banking; Grant's Law of Banking, 6th Edn. P. 66.

Maritime law. The departure of a ship from port after complying with customs, health laws and other local regulations, Black's Law Dictionary,

7th Edn., p. 245