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59 Cards in this Set
- Front
- Back
- 3rd side (hint)
Draft |
BOE drawn by bank against its branch or another bank |
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Trade acceptance |
BOE drawn by seller on the purchase of goods |
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Banker's acceptance |
BOE drawn against bank and accepted by the latter |
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Clean BOE |
BOE no document is attached when presented for payment of acceptance |
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Documentary BOE |
BOE documents are attached when presented for payment or acceptance |
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Sight Bills |
BOE payable upon presentation or at sight or on demand |
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Time or usance bills |
BOE payable at fixed future time or determinable future time |
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Rationale NI are in writing |
Written evidence - certain and accurate than that which rests in fleeting memory only |
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Assigns, Assignees, Holder |
Equivalent term used for order or bearer |
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Bearer instrument |
Payable to bearer or fictitious or impersonal payee, indorsement by blank, to an estate or to cash |
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Specified person |
Payable only to a specified person is not negotiable |
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Drawer's own note or accepted bill |
No drawee is named |
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Legal rate |
Rate used if interest stipulated but not specified |
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Principal is certain. |
Interest is certain if: |
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Installment to be negotiable |
Installments must be specified or could be made certain. Maturity of each installment is known. |
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Stated installments with acceleration clause |
Negotiable even with acceleration clause. Default in any installment will make the whole sum due |
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The transferee is no longer a holder in due course |
Overdue instrument is not fully negotiable. |
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Not negotiable |
Direct payment out of particular fund. |
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Fund for payment |
It is non negotiable because the particular fund may not be sufficient to cover the amount of money to be paid. |
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Negotiable |
Particular account to be debited. Negotiable or not? |
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No |
Does a statement that give rise to transaction impair negotiablity? |
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Not cure its defect |
Happening of a contingency or condition will |
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Non Negotiable |
Promise to do an act in addition to payment of money is.. |
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Sale of collateral securities in case instrument be not paid in maturity. Confession of Judgement. Waives the benefit of law intended at the advantage or protection of obligor. Gives the holder election to require something to be done in lieu of money |
Additional acts which will not destroy the negotiability |
C, J, W, In L |
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No date, no words for value received, no place where the instrument is drawn, no seal, no designation of a particular kind of currency in which payment is to be made |
Non appearance of omissions of ____ will not render the instrument non negotiable. |
D. Con. P. S. Cur. |
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Date of issuance |
No date stated in the instrument. |
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Valuable cosideration |
Presumption that instrument is issued for a |
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Address/ Usual place of business or residence to make payment/ wherever he can be found of last place of business or residence |
No place where instrument is drawn |
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Payable on demand |
Stated payable on demand. On sight or presentation. Issued, accepted, indorsed when overdue |
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Payee must be named or indicated with reasonable certainty |
"To order" payee must be... |
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Ante- dated instrument |
Date of instrument nauna kesa issuance |
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Post dated instrument |
Issuance muna before the date in the instrument |
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Illegal or fraudulent purpose |
Ante and post dating invalidates instrument if.. |
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To know the maturity. Determine prescription of cause of action. When the interest shall begin to run. Determine if party acted within a reasonable time. |
Importance of date of instrument |
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Insert true date of issuance or true date of acceptance |
Undated issuance or acceptance. |
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Penalty for neglect in leaving instrument undated |
If wrong date is inserted? |
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Instrument is genuine and in all respect what it purports to be. Instrument is valid and subsisting. |
Warranties of Indorser |
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Instrument is filled up not in accordance with the authority given. |
Personal Defense |
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Incomplete and revocable |
Without valid delivery ( actual / constructive) the instrument is |
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Estafa |
Defraud another by removing, concealing, or destroying in whole or part a negotiable instrument |
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Per procuration |
Agent that has limited authority |
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Cannot be held liable because of incapacity |
Minor or corporation who endorsed.. |
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Inoperative. No right to retain the instrument. No right to give a discharge. No right to enforce their payment against any party. |
Effects of forgery |
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Prior, the person whose signature was forged, the forger and subsequent parties are liable |
Forgery - if to BEARER |
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Forger and subsequent parties are liable |
Forgery - if To ORDER |
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Holders not in due course. It is a personal defense only |
Total absence or failure of consideration. Defense is against.. |
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Party who signed as maker, drawer, acceptor or indorser without receiving value therefor and for the purpose of LENDING his name to some other persons. |
Accomodation party |
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HFV. Not discharged after payment to HFV because he can ask for reimbursement to the accomodated party |
Accomodation party is liable to |
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Assignment, Operation of Law, Negotiation |
Method of transfer |
A, OL, N |
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Negotiation |
Transfer to 2 / more indorsees severally does not operate as a.. |
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Special, blank, restrictive, qualified, conditional, absolute, joint, successive, irregular, facultative |
Kinds of indorsement |
SPEC, B, R, Q, C, A, J, SUC, I, F |
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Restrictive indorsement- to... only. For collection. In trust for .... |
Prohibits negotiability of instrument to a particular person or for a particular purpose. |
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Limit the liability of indorser by adding words.. without recourse. Sans recourse. Indorsee's own risk. |
Qualified indorsement.. |
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Irregular indorsement/ anomalous indorsement. |
Indorsement by blank before delivery |
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Made by all parties except: the payee/ indorsee has the authority to indorse to others. Or where the payees/ indorsees are partners |
Indorsement by joint payee must be |
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Indorse as therein described. Or add his real name and proper signature. |
Misspelled name of indorsee/ payee |
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Agent must disclose his principal. Add words describing himself as principal. Must be duly authorized |
Indorsement by agent. To escape personal liability |
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Subject to all defenses |
In assignment. Defenses? |
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Relieved from liability: a. Indorser whose indorsement is struck out b. All indorsers subsequent to him. |
Effect of striking out of indorsers |
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