Term
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Definition
| generally refers to a class of docs which can be easily transferred from one person to another |
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Term
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Definition
| a doc which meets all 6 requirements fro negotiability under article 3 of the UCC |
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Term
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Definition
| is the act of transferring ownership of a negotiable instrument |
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Term
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Definition
| the signature of the holder on the back of the instrument |
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Term
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Definition
| the person signing the indorsement |
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Term
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Definition
| The person to whom the instrument is endorsed |
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Term
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Definition
| is a person properly in possession of a properly transferred negotiable instrument |
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Term
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Definition
| contains an order by one person for another to pay a sum of money |
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Term
| 3 parties involved in a transaction involving order paper: |
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Definition
1. drawer- the person signing order paper
2. Drawee - the person or entity ordered to pay
3. Payee - the person who is originally to be paid under the instrument |
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Term
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Definition
| is an order issued by a drawer for a drawee to pay a payee |
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Term
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Definition
| is a draft payable on demand in which a bank is the drawee |
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Term
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Definition
| is the promise of one party to pay another party |
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Term
| 2 parties involved in promise paper |
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Definition
1. maker- is the person who promises to pay
2. payee- is the person who is originally to be paid |
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Term
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Definition
| is a promise by maker to pay a sum of money to payee at a future time |
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Term
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Definition
| special type of promise paper: it is a note of bank acknowledging a deposit and promising to repay at future time with interest |
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Term
| 6 requirements for negotiability |
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Definition
1. instrument in writing
2. signed by the maker or drawer
3. containing an unconditional, unequivocal promise or order to pay a
4. certain sum of money
5. due on demand or at a definite time; and
6. containing words of negotiability |
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