A short-term, negotiable, bearer money market instrument in the form of a “bill of exchange” drawn by a company on a prime bank and accepted by the bank. LEBAs are generally issued with maturities of three or six months, in either interest-bearing or discount-to-yield form. The rate of interest on a LEBA is usually set at a margin below the three- to six-month LIBOR rate to approximate a rate close to the three- or six-month prime bank CD rate. The interest is calculated on the basis of the actual days over a 360-day year. After a LEBA is accepted by the bank on which it is drawn, it becomes a primary obligation of that bank.