Promissory Notes Section 4 - Promissory note[6] A “promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking‚ signed by the maker‚ to pay a certain sum of money only to‚ or to the order of‚ a certain person‚ or to the bearer of the instrument. A promissory note is a legal instrument (more particularly‚ a financial instrument)‚ in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to
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does where it is? Now to answer the question‚ the instrument that is used here is called a promissory note‚ meaning I promise to pay such and such amount by this date. In this particular case the document that states: “I promise to pay to the order of Bob’s Auto Emporium $ 20‚000 with interest at the rate of 7% per annum “‚ granted it is a promise‚ but this one is not negotiable. For a promissory note to be negotiable is has to be in writing‚ it must be signed by the preparer‚ it must be an unconditional
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1. The following are essential requisites of a negotiable promissory note except a. must be written and signed by the drawer b. must contain an unconditional promise to pay a sum certain in money c. must be payable upon fixed determinable future time. d. must be payable to order or bearer 2. Which of the following is not an essential element of a bill of exchange? a. must be written and signed by the drawee b. must contain an unconditional promise to pay a sum certain in money c. must
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7: NOTES RECEIVABLE * Notes receivable are claims supported by formal promises to pay usually in the form of notes. * A negotiable promissory note is an unconditional promise in writing made by one person to another‚ signed by the maker‚ engaging to pay on demand or fixed determinable future time a sum certain in money to order or to bearer. * Maker is the one who writes the promissory note promising to pay another person‚ known as the payee‚ a definite sum of money. * Notes receivable
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in it Although negotiable instruments (eg bills‚ cheques‚ promissory notes‚ certain bearer debentures‚ bonds and share warrants) are categorised as commercial paper‚ not all commercial papers are negotiable instruments. Examples of commercial papers which are not negotiable instruments include bills of lading and share certificate Some negotiable instruments can be characterised as instruments of payment (eg bills‚ cheques and promissory notes) whereas others can be seen as instruments of investment
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– TRANSACTIONS INCLUDING NOTES Definition of Terms * Notes receivable – claims supported by formal promises to pay usually in the form of notes * Negotiable promissory notes – an unconditional promise in writing made by one person to another‚ signed by the maker‚ engaging to pay on demand or at a fixed determinable future time a sum certain in money or to bearer. * Dishonored notes – when promissory note matures and is not paid. This should be removed from the notes receivable account and transferred
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NEGOTIABLE INSTRUMENTS LAW DEFINITIONS: 1) PROMISORY NOTE – It is an unconditional promise in writing made by one person to another‚ signed by the maker‚ engaging to pay on demand‚ or at a fixed or determinable future time‚ a sum certain in money‚ to order or to bearer. (Sec. 184‚ NIL) 2) BILL OF EXCHANGE – It is an unconditional order in writing‚ addressed by one person to another‚ signed by the person giving it‚ requiring the person to whom it is addressed‚ to pay on demand‚ or a fixed or determinable
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amount is payable after the expiry of certain period. Normally 2 to 3 days of grace are allowed 5. Signed by the drawer The bill must be signed by its maker. Without signature‚ it will not be a legal document. IMPORTANT NOTES REGARDING BILL OF EXCHANGE. 1. Bill of exchange is drawn by a creditor upon his debtor. 2. It is legal valid document. 3. It is also an evidence of debt. PARTIES TO THE BILL OF EXCHANGE Bill of exchange involves the following three parties:
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0 Assignment On Negotiable Instruments in Banking Course Title: Introduction to Banking Course Code: FIN-305 Assigned To: Mr. S.M. Athiqur Rahman Lecturer Dept. of Business Administration Leading University‚ Sylhet‚ Bangladesh. Prepared By: Md. Inzamam-Ul Haq Talukder ID. # 1101010342 Section: E 7th Semester (27th Batch) Leading University‚ Sylhet‚ Bangladesh D ATE OF SUBMISSION: APRIL 21‚ 2013 i Declaration This assignment paper has been prepared by myself which is
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than the instrument’s face value (known as “discounting”). Common examples include promissory notes‚ cheques‚ and banknotes. Under United States law‚ Article 3 of the Uniform Commercial Code as enacted in the applicable State law governs the use of negotiable instruments‚ except banknotes (“Federal Reserve Notes”). Contents • 1 Negotiable instruments distinguished from contracts • 2 Classes o 2.1 Promissory note o 2.2 Bill of exchange • 3 In the Commonwealth • 4 In the United States o 4.1
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