Beruflich Dokumente
Kultur Dokumente
What is negotiable?
Negotiable means transferable. The negotiation that goes on refers to the transfer of the instrument between two people, or from one bank to another, or even from one country to another. FEATURES : 1. Negotiability (the transferee gets a good title than transferor ) 2. Transferability ( transfer of ownership) 3. Right in rem and in personam 4. Payment of cash only
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South-Western Publishing
Check Number
Date Date
801
56-25 412
Payee Amount
$ Amount
Dollars
Pettisville Bank
Pettisville, Ohio
DRAFTS
A draft is a three-party instrument similar to a check. A draft is an order signed by one party (the drawer, or drafter) that is addressed to another party (the drawee) directing the drawee to pay to someone (the payee) the amount indicated on the draft. The payment may be at sight or at some defined time.
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BILLS OF EXCHANGE
A bill of exchange is a negotiable and unconditional written order, such as a check, draft, or trade agreement, addressed by one party to another. The receiver of the bill must pay the specified sum or deliver specified goods on demand or at a specified time. Bills of exchange are a common form of internationally negotiable instruments.
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Three months after date pay to -------------------------- or order the sum of rupees twenty five thousand only for the value received.
To X Address ---------------------------------------------------
stamp
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PROMISSORY NOTES
A promissory note is a written promise to pay at a fixed or determinable future time a sum of money to a specified individual. These two-party instruments are legally binding documents with many specified terms that vary widely. Commercial paper, a short-term (270 days or fewer) note or daft issued by a corporation or government, is a common investment instrument.
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Four months after date I promise to pay X or order the sum of rupees thirty thousand only for the value received.
To X Address ---------------------------------------------------
stamp
Signature
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ELEMENTS OF NEGOTIABILITY
Written Signature Unconditional promise or order Sum certain Payable on demand or at a defined time Words of negotiation
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TYPES OF ENDORSEMENT
Transfer in 2 ways By mere delivery - in case of bearer instrument By endoresment & delivery - in case of order instrument Blank endorsement (only signature without name) Full endorsement such as Pay to Ram or order (signed) By krishnan
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Conditional endorsement Eg: Pay to Raman on delivery of bill of lading (Sd.) Krishnan Restrictive endorsement Eg: Pay to Raman only (Sd.) krishnan o Sans recourse endorsement: in case of dishonour, the endorsee cannot make the endorser liable . Eg. Pay to ram sans recourse
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Liability of the Parties: The Drawer A drawer of a draft undertakes that when the draft is presented it will be accepted and paid according to its terms. The drawer also promises that if it is dishonored the drawer will compensate the holder or any endorser who is compelled to pay on it.
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CONSUMER PAYMENTS
Charge cards Credit cards Cash cards Debit cards Smart cards
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Special crossing
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CHARGE CARDS
With a charge card, a consumer makes purchases but must pay the account in full at the end of the month. Charge cards, in effect, lend the amount of purchases for a month. Originally charge cards were store cards, but eventually third-party companies formed networks of participating businesses to expand the market. American Express is the most prominent national charge card.
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CREDIT CARDS
Credit cards allow consumers to pay all or part of their bills each month and finance the unpaid balance. Using a credit card involves two banksthe bank that issued the card and the retailers bank.
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CASH CARDS
Cash cards are commonly used at an automated teller machine (ATM). Consumers can get cash, make transfers and deposits, or perform other banking functions by inserting the card and entering a personal identification number (PIN).
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DEBIT CARDS
Debit cards transfer money from a persons designated account to the account of the retailer. A debit card allows an immediate point-of-sale (POS) transaction.
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SMART CARDS
Smart cards are credit, debit, or other types of cards with embedded microchips. The microchips store values and use the embedded logic to change values and record transactions.
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