Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
buschapter22
| Question | Answer |
|---|---|
| Article 3 of the UCC | A model code that establishes rules for the creation of, transfer of, enforcement of , and liability on negotiable instrument. |
| revised Article 3 | a revision of the UCClaw of negotiable instruments that reflects modern commercial practices |
| Draft | A three part instrument that is an unconditional written order by one party that orders the second party to pay money to the third |
| Drawer of draft | the person who writes an order for draft |
| drawee of a draft | the person who pays the their party |
| payee of a draft | the party who receives the money from the draft |
| time draft | a draft payable at a designated future date |
| sight draft | a draft payable on sight also called a demand draft |
| trade acceptance | A sight draft that arises when credit is extended ( by a seller to a buyer) with the sale of goods. The seller is both the drawer and the payee and the buyer is the drawee |
| check | A distinct form of draft drawn on a financial institution and payable on demand |
| drawer of a check | the checking account holder writer of check |
| drawee of check | the financial institution of the check being written from |
| payee of a check | the party to which the check is being made out too |
| Promissory Note | A two Party negotiable instrument that is an unconditional written promise by one party to pay money to another party |
| Maker of a note | the person who promises to pay (borrower) |
| Payee of the note | lender |
| time note | A not payable at a specific time |
| demand note | a note payable on demand |
| collateral | Security against a payment |
| Certificate of Deposit | A two party instrument that is a special from of note where a party gives money to a financial institution for a certain amount of time being paid back with interest |
| Maker of CD | the financial institution(barrowor) |
| Payee of a CD | the Party who the CD is made payable to |
| Permanency Requirement | A requirement of negotiable instruments that says they must be in a permanent state, such as written on ordinary paper |
| Portability Requirement | A requirement of negotiable instruments that says they must be able to be easily transported between areas |
| Signature requirement | A negotiable instrument must be signed by the drawer or maker |
| Unconditional promise or order to pay requirement | A requirement that says a negotiable instrument must contain either an unconditional promise to pay |
| order to pay | a drawer's unconditional order to a drawee to pay a payee |
| Promise to pay | a Maker's (barrorwer's )unconditional undertaking to repay a debt to a payee |
| unconditional | not conditional or limited. Promises to pay and orders to pay must be unconditional in order for them to be negotiable |
| fixed amount of money | A requirement that a negotiable instrument contain a promise or an order to pay a fixed amount of money |
| fixed amount requirement | a requirement of a negotiable instrument that ensures that the value of the instrument can be determined with certainty |
| demand instrument | an instrument payable on demand |
| time instrument | an instrument payable at a fixed date on or before the start date at a time readily ascertainable when the promise or order is issued |
| Nonnegotiable contract | a contract that fails to meet the requirements of negotiable instrument and no subject to UCC article 3 |
Created by:
681475876