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39 Cards in this Set
- Front
- Back
negotiable instrument
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any paper used in commercial transactions that bears evidence of debt and is transferable by endorsement such as a check, note or draft
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negotiable words
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a negotiable instrument must contain these words, such as "pay to the order of"
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promissory note
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written evidence of debt, coupled with an unqualified promise to pay
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cognovit
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means he/she has acknowledged
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demand notes
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are payable whenever the payee requests kpayment
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collateral
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means side by side, and is anything of value pledged as addiitonal security for the performance of the main obligation
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holder in due course
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transferee of a negotiable instrument with a favored position over other holders
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payee
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the person to whom the promise to pay is made in a promissory note
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maker
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the person who promises to pay a promissory ote on its due date
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legal tender
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money that the law requires a creditor to accept in payment of a debt
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surety
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one who makes himself or herself responsible for anothers debts or obligations
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accomodation note
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one that is assigned by second party as cosigner to ensure payment when due
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debenture
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interest-bearing bond of a cooperation issued without security
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commercial paper
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term used to refer to a written contract for the payment of money
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negotiable
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that which can be sold or transferred readily to a third person and accepted in place of cash is negotiable
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principal
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the person who is primarily responsible for payment of a promisorry note
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comaker or cosigner
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a comaker of a note becomes secondarily liable for its payment
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installment note
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is an ordinary note, payable in installment note; it allows the holder to have judgment entered without starting a lawsuit
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cognovit nnote
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under this note, a debtor has confessed judgment and the justice of the claim and directs entry of judgment against himself in case of nonpayment of the debt
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compound interest
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interest on interest
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usury
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word meaning illegal interest
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endorsement
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the signing of ones name as payee or transferor onthe back of a check or other negotiable instrument
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draft
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written order from one person or firm directing the payent of money to another
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bond
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long-term obligation issued by a private or public corporation to secure money on a loan
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certificate of deposit
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negotiable instrument issued for a stated period by a bank to a depositor who has deposited a specific amount of money
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interest
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money paid for the use of money
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blank endorsement
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when a payee writes only his name on the back of a check
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bill of exchange
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a draft is also known as a bill of exchange
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drawer
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the drawer of a draft makes the request order
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dishonored
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when any party to negotiable negotiable instrument refuses to perform his or her part
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check
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credit instrument that is an order for money drawn on a bank against a depositors account
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cashier's check
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issued by a bank or banker directly against the funds of the bank
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allonge
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a piece of paper attached to a commercial paper to hold "overflor" endorsements
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full endorsement
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names the party to whom title is transferred when placed by a person on a negotiable instrument
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restrictive endorsement
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stops or restrics further negotiability of a commercial paper
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payee
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the payee of a draft is the person in whose favor the draft is made
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forgery
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fraudulently making or altering any writing to the pejudice of anothers rights
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protest
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is the term given a notarized written statement that the principals on a negotiable instrument have failed to perform
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qualified endorsement
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contains the words without recourse
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