FINA 2244 Lecture Notes - Lecture 13: The Seller, Secured Transaction, Leinster Rugby
Document Summary
Negotiable instruments: the functions of negotiable instruments- are substitutes for cash. They serve as a form of credit to debtors. A promissory note is a promise to repay a debt usually with interest in exchange for a monetary advance: the concept of negotiability- arises due to the flexible nature of the instruments. Checks are the most common form of draft. Usually in the form of a promissory note: orders to pay drafts- is a legally binding written order to pay a fixed sum of money that involves three parties. Christina sheppard futrell, esq. with a promise by the bank that it will repay the money on a certain date. Credit- a promise to pay that is not a negotiable instrument. The creditor lends money, the debtors promises to repay the money generally plus interest. Generally a creditor is relying on nothing more that the debtor"s promise to pay.
