| A | B |
|---|
| commercial paper | signed writing that contains an unconditional promise or order to pay an exact amount of money |
| draft | any instrument drawn on another that orders the drawee to pay a certain sum of money |
| drawer | a person who creates a draft |
| drawee | person who is ordered to pay money to another |
| payee | person to whom a negotiable instrument is payable |
| trade acceptance | draft drawn by and payable to the seller of goods by the purchaser of the goods |
| check | draft drawn on a bank payable to the payee on demand |
| promissory note | unconditional promise to paya sum of money to another by a certain time |
| maker | person who creates and is obligated under a promissory note or a certificate of deposit |
| certificate of deposit | instrument created by a bank acknowledging the receipt of money with a promise to repay |
| negotiable instruments | commercial paper that meets the requirements under the UCC for negotiability |
| order instrument | negotiable instrument that is payable to a specifc payee or to any person the payee by indorsement designates |
| bearer instrument | an instrument that does not designate a specific payee and is payable to anyone who has possession |
| bearer | person in possession of an instrument payable to bearer or indorsed blank |
| special indorsement | indorsement that specifies to whom or to whose order the instrument is payable |
| negotiation | transferring of a negotiable instrument to another in such a way that transferee becomes a holder |
| holder | person in possession of a negotiable instrument who is either the payee, a bearer, or one to whom the instrument is properly indorsed |
| indorsement | signature placed on an instrument for the purpose of transferring one's ownership in the instrument |
| indorser | person, either the payee or the holder of the instrument, who signs her or his name on the back of the instrument |
| indorsee | one to whom a negotiable instrument is transferred by indorsement |
| blank indorsement | an indorsement made by the mere writing of the indorser's name on the back of the instrument |
| qualified indorsement | indorsement to disclaim or limit the indorser's contract liability |
| restrictive indorsement | indorsement that places conditions on the further transfer of the instrument |
| holder in due course | any holder who acquires a negotiable instrument for value, in good faith and without notice that the insturment is overdue |
| real defense | defense that can be used to avoid payment to all holders of a negotiable instrument |
| personal defense | defense that can be used to avoid payment to an ordinary holder of a negotiable instrument |
| shelter principle | principle that the holder of a negotiable instrument who cannot qualify as an HDC, but who gets his or her title through an HDC |
| Cashier's check | draft drawn by a bank on itself |
| travelor's check | instrument purchased from a financial instrument that can be used as cash upon a second signature |
| certified check | check is drawn by an individual on his or her own account but bearing a guarantee by a bank |
| stale check | check, other than a certified check that is presented for payment more than six months after its date |
| stop-payment order | order by the drawer of a draft or ckeck directing the drawer's bank not to pay the draft |
