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8 Cards in this Set
- Front
- Back
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What are the two types of commercial paper
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Notes and checks
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What is a note
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A note is a 2 party instrument:
1. Maker: person who signs or is identified in a note as the person undertaking to pay 2. Payee: the person to whom the note is payable |
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What is a check
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A check is a 3 party instrument
1. Drawer: person who signs or is identified in a check as the person ordering payment 2. Drawee: The person ordered in a check to make payment 3. Payee: person to whom the check is payable |
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What is a bank check
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1. cashiers check
2. teller check 3. certified check |
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What is a cashiers check
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a cashiers check is a check w respect to which the drawer and drawee are the same bank
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What is a tellers check
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a check where the drawer is a bank and a different bank is the drawee
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What is a certified check
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one drawn by the drawee bank customers and accepted by the drawee bank (by stamping/signing it "certified"
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What is the importance of negotiability
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if the commercial paper is a negotiable instrument then Art governs and the person holding the instrument may be able to claim a special status: HOLDER IN DUE COURSE
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