CHAPTER 12 posting

CHAPTER 12 posting - CHAPTER 12 Negotiable Instruments,...

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CHAPTER 12 I. Negotiable Instruments A. Definition B. Function C. Common negotiable instruments D. Four types of negotiable instrument – two categories 1. Orders to pay – three party instruments a. drafts (type #1) i. definition ii. creation iii. time draft -trade acceptance agreement -sales draft iv. sight draft b. checks (type #2) i. definition ii. distinguished from draft iii. cashier’s check 2. Promises to pay a. notes (type #3) i. definition ii. parties involved iii. collateral notes iv. real estate mortgage note v. installment note vi. balloon note b. certificates of deposit (type #4) E. Negotiability 1. assigned vs. negotiated 2. bearer instruments 3. six UCC requirements for negotiable instruments a. written b. unconditional c. signed d. payable on demand or at a definite time e. to order or to bearer f. certain sum 4. endorsement and delivery 5. ordinary holder 6. holder in due course (three UCC requirements)
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II. Credit A. Creditor and Debtor defined
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CHAPTER 12 posting - CHAPTER 12 Negotiable Instruments,...

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