Kinds of Commercial Paper

There are numerous ways to classify the basic types of commercial paper. The UCC Classification Section 3-104 specifies four types of instruments – drafts, checks, notes and certificates of deposit.

Promissory note. A promissory note is defined as: “An unconditional promise in writing made by one person to another signed by the maker engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money to, or to the order of, a specified person or to bearer”.

Parties: maker and payee.

Promissory Note. A promissory note is an instrument by which the maker promises to pay a sum of money to another party (the payee).

$ 5,000.00_____________________________________2 January 19XX Ninety (90) days __ ________________after date |__________promise to pay to the order of James J. Walsh five thousand and no|100-------------------------------------------------- DOLLARS   At twelve and one-half percent (12.5%) per annum   Value received NO. 083153 Due _______________________ Karen M. Show  

Check. A check is defined as:

"An unconditional order in writing addressed by one person to a banker, signed by the person giving it, requiring the banker to pay on demand a sum certain in money to, or to the order of, a specified person, or to bearer”.

	£ 22-18p

Date

23-6-1983

To Smith & Co.

For Books

Amount

£22-18p.

  30-90-44 Lloyd’s Bank 23 June 1983 Banstead Branch 38 High Street Banstead   Pay Smith and Co Ltd. Twenty two pounds and eighteen pence only J. Black J. Black  

Draft. A draft is defined as unconditional written order by one party directing another to pay a sum certain in money on demand or at a definite time to order or bearer. Parties: drawer, drawee and payee.

Draft A draft is an instrument by which the party creating it, the drawer (Kathi Early in the example below) orders another party, the drawee (the bank) to pay money to a third party, the payee (Karen Shaw).

$ 5,000.00January 2 19XX Ninety (90) days after the above date PAY TO THE ORDER OF Karen Shaw   five thousand and no|100-------------------------------------------------- DOLLARS with exchange     value received and charge to account of   TO First National Bank of Chicago NO. 02683Chicago, Illinois Kathi Erley Kathi Erley STOCK FORM 990-8 BANKFORMS. INC.

Certificate of deposit. A certificate of deposit is defined as an instrument issued by a bank, which acknowledges receipt of money and states a promise to pay the certificate when it becomes due. Parties: maker (bank) and payee.

Certificate of Deposit. A certificate of deposit is an instrument by which a bank acknowledges receipt of money and promises to return it at a later date or on demand. Certificates of deposit may be negotiable or nonnegotiable, depending upon their terms.

NOTES:

hereof	Ø про це, з цього, звідси
surrender	Ø відмовлятися, здавати, передача
hereinafter	Ø нижче, в майбутньому
renew	Ø поновити, відновити
thereafter	Ø після того, у відповідності
redeem	Ø відшкодувати, повернути
per annum	Ø щорічно
subject to	Ø при умові
subject	Ø підпорядкувати

Cerificate of Deposit not subject to check

AUTOMATICALLY BANK OF HINSDALE 9010183 RENEWABLE 400 EAST OGDEN AVENUE. HINSDALE. ILLINOIS 60521 SUBSIDIARY OF LAKE SHORE BANCORP   January 2 19XX Karen M. Shaw­­­­ HAS DEPOSITED­­­­­­­ five thousand and no|100_______________ DOLLARS $ 5, 000. 00   Payable to the Registered Holder hereof in current funds upon the surrender of this Certificate properly endorsed __________________ after date, or at any subsequent maturity date as herein after provided. It is understood and agreed that this Certificate shall be automtically renewed for an additional period of time equal to the original term hereof, dating from the first maturity date, and thereafter for similar periods of time equal to the original term, unless the Registered Holder hereof shall present this Certificate for payment at any maturity date, or 7 days thereafter, or unless the Bank shall prior to any maturity date, mail written notice to the Registered Holder, at the address appearing on the books of the Bank, of its decision to redeem this Certificate. Interest at the rate of ____________ % per annum shall be paid to the Registered Holder hereof ________________ but the rate of interest to be paid in future renewal periods shall be equal to the rate then in effect at this Bank for similarly issued certificate of deposit of like term and amount. This Certificate and the deposit which it evidences are subject to the rules and Regulations of any Governmental Agency responsible for supervising this Bank or regulating interest rates and the rules and Regulations of the Bank in force from time to time Current FDIC regulations require a substantial penalty if this deposit is withdrawn before maturity date.     ADDRESS One Oak Greek_ Buffalo Grove, IL 60089_ Kelly L. Buckweet social sec. no. 000-00-0000 BY: ______ DATE: _______

Дата добавления: 2015-09-07