-
Acceptor
person who agrees to pay a draft
-
allonge
paper so firmly attached to insturment as to be part of it
-
alteration
unauthorized change or completion of negotiable insturment to modify obligation of a party
-
bad check
check the drawee bank refuse to pay
-
bank draft
(teller's check) check drawn by one bank on another
-
bearer paper
commercial paper payable to bearer
-
bond
sealed, written contract obligation with essentials of note
-
cancelation
act that indicates intention to destroy validity of an insturment
-
certificate of deposit (CD)
acknowledgement by bank of receipt of money with engagement to repay it
-
check
draft drawn on a bank & payable on demand
-
collateral note
note secured by personal property
-
coupon bond
bond with detachable individual coupons representin intrest payments
-
dishonor
presentment made, but acceptance or payment not made
-
draft (bill of exchange)
written order by one person directing another to pay sum of money to thrid person
-
drawee
person ordered to pay draft
-
drawer
person who excutes a draft
-
fiduciary
a person in relationship of trust & confidence
-
holder
person in possession of instrumen payable to bearer or that person
-
holder in due course (holder through)
holder subsequent to holder in due course
-
hybrid defense
defind & which ae included
-
indorsement
signature of holder on back of insturments with any directions or limitations
-
indorser
payee or holder who signs back of instrument
-
limited defense
defined & which are included
-
maker
person who executes a note
-
money order
insturment issued by business indicating payee may receive
-
negotiable insturment (commercial paper)
writting drawn in special form that can be transfered as substitutes for money or as insturment of credit
-
negotiation
act of transfering ownersip
-
order paper
commercial paper payableto order
-
payee
party to whom insturment is payable
-
presentment
the demand for acceptance made upon the maker
-
primary liability
liability without conditions for commercial paper that is due
-
promissory note
unconditional written promise to pay sum of money to another
-
registered bond
bond payable to specific person, whose name is recorded by issuer
-
renunciation
unilateral act of holder giving up rights in the instrument or against a party to it
-
setoff
a claim by the party being sued against the party suing
-
trade acceptance
draft drawn by seller on purchaser of goods
-
universal defense includes
- minority
- forgery
- fraud as to the nature of the instrument or its essential terms
- discharge in bankruptcy proceedings
-
voucher check
check with voucher attached
-
Other types of checks
cashier's check, certified check, stale check
-
cashiers check
check drawn by bank on its own funds
-
certified check
check accepted by banks writing certified on it
-
stale check
check presented more than six months after its date
-
Requirements for negotiability
- instrument must be in writing & signed by the party executing it
- instrument must contain either an order to pay or a promise to pay
- order or the promise must be unconditional
- instrument must provide for the payment of a fixed amount of money
- instrument must be payable either on demand or at a fixed or definite time
-
types of drafts
inland, foreign, sight
-
inland drafts
draft drawn & payable in the United States
-
foreign drafts
drafts outside of the US
-
sight drafts
draft payable on presentation by holder
-
types of indorsements
blank, restrictive, qualified, special
-
blank indorsement
indorsement consisitng of signature of indorser
-
restricitive indorsement
indorsement that restrict use of instrument
-
qualified indorsement
indorsement that limits liability of indorser
-
special indorsement
indorsement that designates particular person to whom payment is to be made
-
classification of defenses
- 1. ordinary contract defenses
- 2. fraud that induced the execution of the insturment
- 3. conditional delivery
- 4. impropercompletion
- 5. payment or part payment
- 6. nondelivery
- 7. theft
|
|
