Professional Documents
Culture Documents
Nego Terminologies
Nego Terminologies
9. Coupon Bond. A coupon bond is so called because the interest payments that
will become due on the bond are represented by detachable individual coupons to
be presented for payment when due. Coupon bonds and the individual coupons are
usually payable to the bearer, as a result, they can be negotiated by delivery. There
is no registration of the original purchaser or any subsequent holder of the bond. (3)
10. Registered bond. A registered bond is a bond payable to a named person.
The bond is recorded under that name by the organization issuing it to guard
against its loss or destruction. When a registered bond is sold, a record of the
transfer to the new bondholder must be made under the name of the new holder of
the bond. (3)
11. Collateral Note. A collateral note is a note secured by personal property.
The collateral usually consists of stock, bonds, or other written evidences of debt, or
a security interest in tangible personal property given by the debtor to the payeecreditor. (3)
12. Debentures. An unsecured bond or note issued by a business firm is called
debentures. A debenture, like any other bond, is nothing more or less than a
promissory note, usually under seal. It may be embellished with gold-colored edges,
but this does not in any way indicate its value. A debenture is usually negotiable in
form. (3)
13. Certified check. A certified check is an ordinary check accepted by an
official of the drawee bank. The official accepts it by writing across the face of the
check the word certified, or some similar word, and signing it. Either the drawer or
the holder may have a check certified. The certification of the check by the bank
has the same effect as an acceptance. It makes the bank liable for the payment of
the check and binds it by the warranties made by an acceptor. A certification
obtained by a holder releases the drawer from liability. (3)
A certified check is a check that has been drawn by a depositor and then
accepted by the bank on which it is drawn. (4)
A certified check is one that has been accepted by the drawee bank. In
other words, the bank has assumed primary liability and agreed to pay the
check upon a later presentment. (6)
Certified check: A check accepted by the bank on which it is drawn (7)
14. Cashiers Check. A check that a bank draws on its won funds and that the
cashier or some other responsible official of the bank signs is called a cashiers
check. It is accepted for payment when issued and delivered. Such a check may
be used by a bank in paying its own obligations, or it may be used by anyone else
who wishes to remit money in some form other than cash or a personal check. (3)
When a bank draws a check on itself, the check is called a cashiers check
and is a negotiable instrument on issue. (4)
Cashiers check means a draft with respect to which a drawer and drawee
are the same bank or branches of the same bank. (6)
Cashiers check means a draft with respect to which a drawer and drawee
are the same bank or branches of the same bank. (7)
15. Voucher Checks. A voucher check is a check with a voucher attached. The
voucher lists the items of an invoice for which the check is the means of payment.
In business the drawer of the check customarily writes on the check such words as
In full of account, For invoice NO. 1622, or similar notations. These notations make
the checks excellent receipts when the returned to the drawer. (3)
16. Bad Check. A bad check is a check that the holder sends to the drawee bank
and the bank refuses to pay, normally for insufficient funds. Usually these statutes
state that if the check is not made good within a specific period, such as ten days, a
presumption arises that the drawer originally issued the check with the intent to
defraud. (3)
17. Stale Check. A check that is presented more than six months after its date is
commonly called stale check. A bank acts in good faith may pay it. However,
unless the check is certified, the bank is not required to pay it. (3)
Stale Check. If a check is not presented to a bank within six months of its
date, the check is considered a stale check. (7)
18. Tellers Check is usually drawn by a bank on another bank; when drawn on a
nonblank, it is payable at or through a bank. (4)
Tellers check means a draft drawn by a bank (i) on another bank, or (ii)
payable at or through a bank. (6)
Tellers check is similar to a cashiers check in that both the drawer and the
drawee are banks. However, a tellers check is different because it is a check
that is drawn by one bank and usually drawn on another bank. In other
words, bank A is the drawer while bank B is the drawee. (7)
19. Travelers Check is an instrument that is payable on demand, drawn on or
payable at a bank and designated as a travelers check. (4)
Travelers Check means an instrument that (i) is payable on demand, (ii) is
drawn on or payable at or through a bank, (iii) is designated by the term
travelers check or by a substantially similar term, and (iv) requires as a
condition to payment, a countersignature by a person whose specimen
signature appears on the instrument. (6)
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(1) Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, Franck B. Cross
(1989). Wests Business Law Text Cases Legal Environment, 4 th Edition, West
Publishing Company.
(2) Henry R. Cheeseman (2000). Contemporary Business Law, 3rd Edition. Prentice
Hall, Upper Saddle River, New Jersey 07458.
(3) John D. Ashcroft, J.D., Janet E. Ashcroft, J.D. (1999). Law for Business, 13th
Edition, West Educational Publishing Company.
(4) Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, Franck B. Cross
(2004). Wests Business Law Text Cases Legal, Ethical, International, and ECommerce Environment, 9th Edition.
(5) R B Vermeesch, K E Lindgren (1984).
Butterworths Pty Limited 1983.
(6) Daniel V. Davidson, Brenda E. Knowles, Lynn M. Forsythe (2001). Business Law
Principles and Cases in the Legal Environment, 7 th Edition. West Legal Studies in
Business Thomson Learning.
(7) Nancy Kubasek, M. Neil Browne, Daniel J. Herron, Andrea Giampetro-Meyer,
Linda Barkacs, Lucien Dhooge, Carrie Williamson (2009). Dynamic Business Law.
McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue
of the Americas, New York, NY, 10020.
(8) Elliot I. Klaymann, John W. Bagby, Nan S. Ellis (1994). Irwins Business Law
Concepts, Analysis, Perspective. IRWIN Burr Ridge, Illinois; Boston, Massachusetts;
Sydney, Australia.
(9) Dorothy Duplessis, Steven Enman, Sally Gunz, Shannon OBryne (2001).
Canadian Business and the Law. Nelson Thomson Learning, Australia, Canada,
Mexico, Singapore, Spain, United Kingdom, United States.
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