chapter 30 kinds of instruments parties and negotiability n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 30 Kinds of Instruments, Parties, and Negotiability PowerPoint Presentation
Download Presentation
Chapter 30 Kinds of Instruments, Parties, and Negotiability

Loading in 2 Seconds...

play fullscreen
1 / 11

Chapter 30 Kinds of Instruments, Parties, and Negotiability - PowerPoint PPT Presentation


  • 179 Views
  • Uploaded on

Chapter 30 Kinds of Instruments, Parties, and Negotiability. Twomey, Business Law and the Regulatory Environment (14th Ed.). Types of Instruments and Parties [30-1]. Maker (Borrower). Notes. Payee. Certificates of Deposit. Maker (Bank). Payee. Drawer (Seller). Drawee (Buyer). Draft.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 30 Kinds of Instruments, Parties, and Negotiability' - efrat


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 30 kinds of instruments parties and negotiability

Chapter 30Kinds of Instruments, Parties, and Negotiability

Twomey, Business Law and the Regulatory Environment (14th Ed.)

types of instruments and parties 30 1
Types of Instruments and Parties [30-1]

Maker (Borrower)

Notes

Payee

Certificates of

Deposit

Maker (Bank)

Payee

Drawer (Seller)

Drawee (Buyer)

Draft

Payee (Seller or Seller’s Bank)

Drawer (Account Holder)

Check

Drawee (Bank)

Payee

Chapter 30

promissory note 30 2
Promissory Note [30-2]

PAYEE

$ 5,000.00 Chicago, Illinois March 1 ,19-- Six months after date I promise to pay to the order of Carlos SandovalFive-Thousand and no/100 dollars Payable at Chicago National Bankwith interest at 8.5%No.43 Due Sept. 1, 19--Mary Huntington Smyth

Pay to the order of

Michael Ho

Carlos Sandoval

Payment guaranteed

Michael Ho

MAKER

INDORSEE

INDORSER (1st)

INDORSER (2nd)/

GUARANTOR

19--

pay to

ollars

Smyth

Chapter 30

draft 30 3
Draft[30-3]

June 30, 2000

Pay to the order of ABC Corp., Inc.

Rt. 1

Waverly, Iowa

Accepted by:

Delia David

DEF Corporation, Inc.

John Jones

ABC Corp., Inc.

Chapter 30

bearer vs order paper 30 4
Bearer vs. Order Paper[30-4]

Bearer? Order?

“Pay to _______________________”

“Pay to Thomasina Jones” (check)

“Pay to Thomasina Jones” (note)

“Pay to John Jones or bearer”

“Pay to John Jones and bearer” (check)

“Pay to John Jones and bearer” (note)

“Pay to the order of Thomasina Jones”

“Pay to the order of cash”

“Pay to the order of __________________”

“Pay to the bearer”

“Pay to cash”

“Pay to the order of Thomasina Jones or bearer”

Chapter 30

promissory note
Promissory Note

March 31, 1998

Six months after date debtor undersigned hereby promises to pay to the order of Galactic Games, Inc, three thousand six hundred dollars with interest at the rate of 10.9%. This note is secured by the video arcade games purchased with its funds.

In the event of default, all sums due hereunder may be collected. Debtor agrees to pay all costs of collection including, but not limited to, attorney fees, costs of repossession, and costs of litigation.

John R. Haldehand

Video Arcade Inc.

Chapter 30

chapter 30 summary
Chapter 30 Summary

An instrument or piece of commercial paper is a transferable, written, signed promise or order to pay a specified sum of money. An instrument is negotiable when it contains the terms required by the UCC.

Chapter 30

chapter 30 summary 2
Chapter 30 Summary [2]

There are two categories of negotiable instruments: (1) promissory notes and (2) drafts. A certificate of deposit is classified as a promissory note. In addition to ordinary checks, there are also cashier’s checks and teller’s checks. A bank money order is a check even though it bears the words money order.

Chapter 30

chapter 30 summary 3
Chapter 30 Summary [3]

The original parties to a note are the maker and the payee. The original parties to a draft are the drawer, the drawee, and the payee. The term party may refer to a natural person or to an artificial person, such as a corporation. It may also mean an unincorporated enterprise, a government, or a bank account.

Chapter 30

chapter 30 summary 4
Chapter 30 Summary [4]

The requirements of negotiability are that the instrument (1) be in writing, (2) be signed by the maker or the drawer, and (3) contain a promise or order (4) of an unconditional character (5) to pay in money (6) a sum certain (7) on demand or at a definite time (8) to order or bearer. A check may be negotiable without being payable to order or bearer. If an instrument is not negotiable, it is governed by contract law.

Chapter 30

chapter 30 summary 5
Chapter 30 Summary [5]

The maker of a promissory note and the acceptor of a draft are primarily liable for paying the face value of the instrument. Payment may be demanded from the maker or the acceptor as soon as the paper is due.

Chapter 30