Both large and small CDs pay interest many CDs are negotiable and may be sold

Both large and small cds pay interest many cds are

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small CDs while CDs issued in amounts above $100,000 are called large or jumbo CDs.  Both large and small CDs pay interest; many CDs are negotiable and may be sold or used to pay debts or serve as security (collateral) for loans.
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234           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION 2 . What is a bearer?    A bearer is any person who has physical possession of an instrument that either is payable to anyone without specific designation or is indorsed in blank (an indorsement consisting of the in- dorser’s signature only).  A bearer instrument is payable to whoever possesses it.  If a note is expressly made “payable to bearer” or if a check that already is imprinted with “payable to the order of” is made to read “pay to the order of bearer,” the person who possesses that note or check is the bearer.  One of the most common meth- ods of creating a bearer instrument is to make a check read “pay to the order of cash.”  A check payable to the or- der of a named person and indorsed by that named person in blank on the back also makes its possessor a bearer. 3. What are some of the practical limitations concerning the writing evidencing a negotiable instrument and the substance on which it is placed?   The writing must be on material that lends itself to permanence.  Paper satisfies the necessary requirement that the writing be permanent although one could presumably use other materials such as cloth or even stone tablets.  Yet the permanence requirement is qualified because the writing must also be portable.  The portability of a writing will be construed in terms of existing commercial practices so that even if the object on which the writing is placed (such as the hide of a cow) can be moved, it may be unsatisfactory because it is commercially impractical. 4. What sort of signature is required by the UCC to create a negotiable instrument?    UCC 1–201(39) defines the word “signed” as including “any symbol executed or adopted by a party with present intention to authenticate a writing.”  According to UCC 3-401(b), a “signature made be made (i) manually by means of a device or machine, and (ii) by the use of any name, including any trade or assumed name, or by any word, mark, or symbol executed or adopted by a person with present intention to authenticate a writing.”  What is important is not the symbol but the intent by the signatory that the symbol serve as his signature.  As a result, the signer may use his or her initials or an X or even a thumbprint.  Trade names and rubber stamp signatures will also bind the signer if the requisite intent can be demonstrated.
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