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Chapter 24 - i Or payee d Certificates of deposit(CDs)L two...

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Chapter 24 1. Articles 3 and 4 of the ucc a. A “negotiable instrument” is a signed writing containing an unconditional promise to pay exact sum money. b. History of negotiable instruments bargain in England “bills of exchange” so that merchants were able to exchange money while keeping it safe in the banks c. 2002 amendments to UCC articles 3 and 4 2. Types of negotiable instruments a. Drafts and checks are 3 party instruments: drawer (person who is order person to pay), drawee (person who has to pay) and payee (person who gets paid i. Checks (cashier’s, tellers and travelers) are drafts on a bank b. Time draft – draft that payable at some particular day definite c. Site draft – drafts that are paid on site. i. Trade acceptance seller is drawer and payee. 1. Seller of goods is both drawer and payee 3. Promissory note are two party instruments a. Maker (promisor) and b. Order has an identified person c. Bearer (promise) – payable to whoever’s carrying it
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Unformatted text preview: i. Or payee d. Certificates of deposit (CDs)L two party instruments) 4. Requirements for negotiability a. Writing signed by the maker or the drawer i. Must be written on something that lends itself to permits (permanence) ii. Signature b. Unconditional promise or order to pay a fixed Fixed amount of money c. Payable on demand. ********** 5. Requirements for negotiability a. Payment at a definite time i. Acceleration and extension clauses. Instruments that use these clauses are still negotiable b. Be payable to order or to bearer, unless it is a check 6. Factors not affecting negotiability a. Omission of date unless, the date is necessary to see when the payment is do b. Postdating or antedating c. Handwritten over typewritten or printed d. Words over numbers e. With interest f. Mention of collateral g. If you write non negotiable on a check, it doesn’t mean it’s not negotiable h....
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