Types of Negotiable Instruments

Types of Negotiable Instruments - Types of Negotiable...

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Types of Negotiable Instruments - Two categories o Notes o Drafts Checks (drawer, drawee, payee) Cashier’s, Teller’s, Traveler’s Negotiability - To be negotiable: o In Writing Can’t be oral o Signed by Maker/Drawer o Unconditional promise or order Implied conditions/Reference to other agreements, description of consideration Courier without Luggage no add’l promises allowed o To pay a fixed amount of money Amount must be readily calculable, interest rates OK o On Demand or at a Definite Time o Payable to Bearer or to Order o Free from unauthorized promises Negotiation - 3 stages o Issuance o Transfer Holder status Negotiation Indorsement Shelter Rule o Presentment - Types of Indorsements: o Special o Blank - Terms o Bearer o Holder o PEEI o Transferor o Shelter Rule Transferee o Indorser o Depositary Bank - Forgery of the Payee’s Name o Showing forgery o Unauthorized Signature Holders in Due Course - What is an HDC? -
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This note was uploaded on 04/27/2010 for the course LAW 840 taught by Professor Tim during the Spring '10 term at University of Louisville.

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Types of Negotiable Instruments - Types of Negotiable...

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