Commercial paper

Question 1

Promissory Notes

Answer 1

Promise to pay specific amount

2 parties: Maker & Payee

Question 2

Drafts

Answer 2

3 parties:

Drawer (you), Payee(person being pd), Drawee (bank)

Question 3

Checks

Answer 3

is a draft payable on demand

payable to order of drawer or bearer

Question 4

Negotiation of commercial paper

Answer 4

transfers ownership to another party

Question 5

To maintain negotiability :

Answer 5

must be in writing, signed by drawer/maker, be without conditions for payment

Question 6

Holder in due course

Answer 6

upgrade form merely being a holder
requires: 
-holding a negotiable instrument
taking in good faith
having NO knowledge of defenses against it
giving present value for instrument