Accommodation paper is a type of negotiable instrument signed by a party—without receiving value: to facilitate another party in obtaining money or credit.
A blank cheque is a negotiable instrument with the amount left unspecified by the drawer. It can be used when the drawer wishes to permit the bearer to fill in the amount of money they choose up to an authorized limit.
In financial and legal contexts, 'cancel' refers to the act of voiding a negotiable instrument by annulling or settling it, prematurely terminating a bond or other contract, or voiding an order to buy or sell securities.
Debt is an amount of money borrowed by one party from another, which is often incurred by businesses and individuals to finance specific activities or projects.
In accounting and finance, an instrument refers to any document or financial asset that represents some form of value, usually a legal document that records a right to pay a sum of money or property. Common examples include promissory notes, checks, bonds, and other financial securities.
A liquid instrument refers to a negotiable instrument that the purchaser can sell or trade before its maturity date, offering flexibility and quick access to funds.
The ability of a document to change hands, entitling its owner to some benefit, such that legal ownership of the benefit passes by delivery or endorsement of the document.
A negotiable instrument is a document of title that can be freely transferred from one party to another, allowing for the facilitation of trade and commerce.
The term 'Not Negotiable' is used in the context of bills of exchange, indicating that the instrument is no longer a negotiable instrument. This term provides a safeguard against passing on a defective title.
An order bill of lading (often abbreviated as B/L or BoL) is a negotiable document that serves as a receipt for shipped goods and provides proof of shipment. More importantly, it can be transferred to another party, granting the holder rights to the goods.
Payment in due course refers to the payment of a negotiable instrument, such as a check or promissory note, made when it is due or later, to its rightful holder, conducted in good faith and without notice of any defects in the holder's title.
A promissory note is a negotiable instrument that contains a written promise to pay a specified sum of money to a named person, their order, or the bearer at a predetermined future date. It must be unconditional, signed by the maker, and delivered to the payee or bearer.
