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19 Cards in this Set
- Front
- Back
What is the definition of commercial paper? |
pieces of paper that direct money from one person to another |
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What are the two types of Commercial Paper? |
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What is an Order? |
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What is a Promise? |
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What are the eight requirements for a Negotiable Instrument? |
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What is the Unconditional requirement of Negotiable Instrument? |
(i) refer to accompanying loan/security agreement, or (ii) limit payment to particular source |
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What is the Fixed Amount requirement of Negotiable Instrument? |
Must be a definite amount (formulas are ok) |
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What is the Words of Negotiability requirement of Negotiable Instrument?
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"Magic Words" necessary
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What are the two types of Words of Negotiability? |
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What are the two Bearer Words of Negotiability? |
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What are the two Order Words of Negotiability? |
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What is the Definite Time for Payment requirement of Negotiable Instrument? |
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What is the No Extraneous Undertaking requirement of Negotiable Instrument?
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no additional promises or orders to do anything other than paying money |
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What are the three exceptions to the No Extraneous Undertakings requirement? |
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Who are the three parties to an Order? |
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Who is the Drawer? |
Person making the check - the account holder |
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Who is the Drawee/Payor? |
The person being ordered to pay - the bank |
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Who is the Payee? |
The person accepting the check - 3rd party |
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Who are the two parties to a Promise? |
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