Note A promise to pay money Maker Promises to pay money Payee Person maker promises to pay Sample Note simple Sample Note detailed continued Certificate of Deposit CD Special type of note ID: 460666
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Slide1
Types of Negotiable InstrumentsSlide2
Note
A promise to pay money.
Maker = Promises to pay money
Payee = Person maker promises to paySlide3
Sample Note (simple)Slide4
Sample Note (detailed)Slide5
(continued)Slide6
Certificate of Deposit (CD)
Special type of note:
1. Bank acknowledges receipt of money.
2. Bank promises to repay the money.Slide7
Draft
An order to pay money.
Drawer – Orders the payment of money
Drawee – Person to pay the money
Payee – Person entitled to the moneySlide8
Sample DraftSlide9
Check
Special type of draft:
1.
Bank
is
the drawee, and
2. Payable on demand.Slide10
Ordinary CheckSlide11
Certified Check
Drawee (Lincoln) has accepted the check.Slide12
Cashier’s Check
Drawer and drawee are the same bank (Peoples Bank)Slide13
Teller’s Check
Drawer (Community Bank) and Drawee (Wells Fargo) are different banks.Slide14
Traveler’s Check
Sign when purchase
Sign again when cashSlide15
Remotely Created Item