Negotiable Instruments Created By: Laura Kinchen.
-
Upload
leonard-floyd -
Category
Documents
-
view
212 -
download
0
Transcript of Negotiable Instruments Created By: Laura Kinchen.
![Page 1: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/1.jpg)
Negotiable Instruments
Created By: Laura Kinchen
![Page 2: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/2.jpg)
What is a negotiable instrument?
A written order or promise to pay a sum of money, either to a specified party or to the person who holds it.
Negotiable means transferable
![Page 3: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/3.jpg)
Negotiable Instrument
A check, like money, is a medium of exchange.
The negotiation that goes on refers to the transfer of the instrument from one party to another
![Page 4: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/4.jpg)
Examples of Negotiable Instruments
Checks
Drafts
Bills of exchange
Some types of promissory notes
Winning Lottery Tickets, Certificates of Deposit, Bonds, Treasury bills
![Page 5: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/5.jpg)
Checks
Most common form of negotiable instrument
Offer:Convenience for writer and recipientRelatively high degree of safetyRecord of transaction
![Page 6: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/6.jpg)
Drafts
Three-party instrument like a check, but there are other forms
An order signed by one party (payer/drawer) that is addressed to another party (drawee) directing the drawee to pay to someone (payee) the amount indicated on the draft
![Page 7: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/7.jpg)
Drafts
Most drafts are used for the purchase of goods and services when the transaction goes beyond the bounds of the U.S. banking law
![Page 8: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/8.jpg)
Bills of Exchange
Negotiable and unconditional written order, such as a check, draft or trade agreement, addressed by one party to another
Common form of internationally negotiable instruments
![Page 9: Negotiable Instruments Created By: Laura Kinchen.](https://reader036.fdocuments.net/reader036/viewer/2022083009/5697bf821a28abf838c85d5a/html5/thumbnails/9.jpg)
Promissory Notes
Written promise to pay at a fixed or determinable future time a sum of money to a specified individual