Quiz 4 Study Guide Flashcards
A person in possession of an instrument
Bear
(Negotiable instrument)
A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit
Commercial Paper
A written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand or at a certain time.
Draft
The person, company or financial institution ordered to pay a draft
Drawee
The person who executes any draft
Drawer
One in possession of commercial paper
Holder
A person who becomes the holder of a negotiable instrument by endorsement which names him or her as the person to whom the instrument is negotiated
Endorsee
The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument.
Indorsement
Person who writes his or her name on back of an instrument
Endorser
The act of transferring ownership of a negotiable instrument to another party
Negotiability (negotiation)
Commercial paper made payable to the order of some named party; the word order or its equivalent must be used
Order paper (instrument)
The party to whom any negotiable instrument is made payable
Payee
A negotiable instrument containing a promise to pay
Promissory note
The transfer of title to goods from the seller to the buyer for a consideration called the price
Sale
A check drawn on a bank’s own funds and signed by a responsible bank official
Cashier’s check
A check for which the bank assures that the drawer has sufficient funds to make payment
Certified check
An order by a depositor on the bank to pay a sum of money to a payee
Check
Having no words other than the signature of the endorser
Blank endorsement
An endorsement which limits the liability of the endorser
Qualified endorsement
An endorsement which prevents the use of the instrument for anything except the stated use
Restrictive endorsement
An endorsement which designates the particular person to whom payment is to be made
Special endorsement
