In General Flashcards
1
Q
What is a note?
A
A two-party commercial paper. A written and signed promise (undertaking) by one party (the “maker”) to pay money to another party (the “payee” or bearer.
2
Q
Notes
What is a Certificate of Deposit (CD)
A
A CD is an instrument made by a bank containing:
- An acknowledgment that a sum of money has been received by the bank; and
- A promise by the bank to repay the sum of money.
3
Q
What is a draft?
A
A draft is three-party commercial paper. It is written and signed instruction by one person (the “drawer”) to another person (the “drawee”) demanding that the drawee pay money to still a third person (the “payee” or “bearer”).
