MGMT 200 Lecture Notes - Lecture 10: Bearer Instrument, Negotiable Instrument, Promissory Note
Document Summary
Draft- unconditional order to pay involving three to pay involving three parties: Parties: drawer drawer (customer), drawee (customer), drawee (bank) and. Check- a draft drawn on a bank and payable on demand. Promissory note- a promise by one party to pay funds to another party or to bearer. Certificate of deposit-a note issued by a bank acknowledging a deposit of funds and made payable to the holder of the note. Writing signed by the maker or the drawer. Payable on demand or at a definite time. Order instrument is payable to identified person or order. Identified person may transfer check to whomever he lives. Bearer instrument is literally payable to the possessor of the instrument. Indorsement- is a signature, with or without words or statements or without words or statement. Indorser- person who transfers instrument by signing it and delivering to another person. Requirements for hdc (holder in due course) status.
