3488149
Description
Flashcards by danitagoode, updated more than 1 year ago
|
Created by danitagoode
over 8 years ago
|
|
| Question | Answer |
| Money | The medium of exchange authorized or adopted by domestic or foreign gov't as a part of its currency |
| Note | a written promise to pay |
| Drawee | issues payment to payee |
| Draft | written order by one person ("drawer") to another ("drawee"), directing the latter to pay money to a third person ("payee") |
| Depository | typically a bank |
| Promise | a written undertaking to pay money signed by the person undertaking to pay |
| Order | a written instruction to pay money signed by the person giving the instruction |
| payee | person being paid |
| U.C.C. | Uniform Commercial Code |
| Remitter | A person who purchases an instrument (e.g., cashier's check) from its issuer (e.g., bank) if the instrument is payable to an identified person other than the purchaser |
| teller's check | one bank draws a draft on another or makes the draft "payable through" another bank |
| Fixed amount of money | principal remains fixed even if interest changes |
| exception | something that is excluded from a rule's operation |
| Drawer | writes check |
| Bearer | one who possesses a negotiable instrument marked "payable to bearer" or indorsed in blank |
| Indorsed | to sign (a negotiable instrument), usu. on the back either to accept responsibility for paying an obligation memorialized by the instrument or to make the instrument payable to someone other than the payee |
| Courier without luggage | means that the instrument must not be burdened with anything other than the simple and clean unconditional promise or order, it cannot be made to truck around other legal obligations |
| Confession of Judgment | A person's agreeing to the entry of judgment upon the occurrence or non-occurrence of an event, such as making a payment. |
| Acceptance | the formal receipt of and agreement to pay a negotiable instrument |
| acceleration | the advancing of a loan agreement's maturity date so that payment of the entire debt is due immediately |
| Note | promise to pay |
| Draft | order to pay |
| Maker | a person who signs a promissory note |
| Collateral | property that is pledged as security against a debt; the property subject to a security interest |
| Holder in Due Course Doctrine | where if you take an instrument in good faith and for value, you may have more rights to enforce it against its issuer than the person who sold it to you |
| Holder | the person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession |
| Negotiable Instrument (1 of 5) | UCC § 3-104(a) “Negotiable instrument” means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: |
| Negotiable Instrument (2 of 5) | (1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder; |
| Negotiable Instrument (3 of 5) | (2) is payable on demand or at a definite time; and |
| Negotiable Instrument (4 of 5) | (3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain |
| Negotiable Instrument (5 of 5) | (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor. |
Want to create your own Flashcards for free with GoConqr? Learn more.