commercial paper
commercial paper
commercial paper
commercial paper
commercial paper
100
Define promissory note
What is a promise by the maker to the payee to pay a sum of money on demand or a certain due date?
100
How can a negotiable instrument be transferred?
What is by negotiation or assignment? Although understand there is probably no good reason to assign a negotiable instrument.
100
How can a nonnegotiable instrument be transferred?
What is by assignment only?
100
Define drawer.
What is creator of a draft or a check.
100
Joe writes a check to Mary for the work she did for him. the check is written n Joe's account at First State Bank. Label correctly the parties to this instrument.
What is Joe is the drawer and First State is the Drawee and Mary is the Payee?
200
What are three requirements to make an instrument negotiable?
What is in writing, signed by the maker or drawer, and unconditional promise or order to pay? (There are six)
200
Define draft.
What is an order by the drawer to the drawee to pay the payee?
200
What type endorsement is this: John Smith
What is blank endorsement?
200
Mary Jones is the payee of a promissory note. What does she need to do to transfer this promissory note to Bob Brown?
What is endorse it and deliver it?
200
Define acceleration clause that is part of a promissory note.
What is a clause in a promissory that allows the holder of that instrument to demand full payment of that instrument upon the occurrence of a certain event like missing a monthly payment.
300
List four commercial papers.
What are check, draft, promissory note, certificate of deposit?
300
Define a check.
What is an order by the drawer to the drawee to pay the payee and the payee is a bank. A check is a demand instrument.
300
Define drawee.
What is the entity to which the order in a draft is made? This is a bank if the draft is a check.
300
Negotiable promissory notes must have a definite due date.
What is FALSE? Negotiable instruments can have a definite due date or be payable on demand.
400
Which is a more safe endorsement, blank or special?
What is What is special endorsement?
400
Define payee.
What is person who is getting paid?
400
What are three requirements for an instrument to be negotiable? (There are six.)
What is State a foxed amount of money, be payable on demand or a definite due date, and be payable to order or bearer?
400
Define certificate of deposit.
What is a receipt for money?
400
Define holder in due course.
What is a holder of a negotiable instrument taken the instrument FOR VALUE, and IN GOOD FAITH, and WITHOUT NOTICE THAT THE INSTRUMENT IS DEFACTIVE IN ANY WAY.
500
What type endorsement is the following: For Deposit Only John Smith
What is restrictive endorsement.
500
What type endorsement is the following: Without Recourse John Smith
What is a qualified endorsement?
500
What type endorsement is this: Pay to the Order of Mary Jones John Smith
What is special endorsement?
500
Joe Jones rightfully holds a promissory note made out to bearer. What must Joe due to transfer this note to May Brown?
What is deliver it? No endorsement is necessary since it is bearer paper.
500
How does the existence of collateral affect the character of a promissory note? For instance, I borrow $10,000 at First State Bank and give my car as collateral to secure the payment of the note. How does that affect the character of the note?
It does not. The promissory note is still negotiable or nonnegotiable regardless of whether there is collateral or not.
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