Billy is a Bandit in the Lonely Peaks area north of Carnival. He is part of Ioin Gallchobhair's gang, along with Dribben. They demand a "toll" of the protagonist for passing through the area. Though it is not phrased as a "your money or your life" threat, that is what it amounts to.
Billy has 5 Arrows +1 (possibly only in BG:EE) which he will use unless you engage him in melee quickly.
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