| A | B |
|---|
| negotiable instrument | financial document that transfers ownership form one person to another |
| promissory note | written promise to pay a certain sum of money on demand or on a specified date; a formal legal document serving as proof of a debt |
| principal | the amount of money borrowed |
| face value | tha amount written on the "face" of a promissory note |
| issue date | the date a promissory note is written |
| maturity date | the due date of a promissory note |
| term | the amount of time between the issue date and the maturity date of a promissory note |
| payee | one to whom a promissory note is issued |
| maker | one who issues a promisorry note |
| interest | the fee charged for the use of money |
| interest rate | the amount of interest expressed as a percentage of the principal |
| maturity value | principal plus interest |
| interest-bearing note | a promissory note requiring the payment of the principal plus interest on the maturity date |
| bank discount | the amount of interest deducted in advance when a promissory note is discounted |
| contingent liability | the liability an endorser has for the payment of a note |
| discount period | the period of time between the discount date and the maturity date of a note |
| discounted notes receivable | deducting the interest on a note payable at the time the note is issued |
| dishonored note | promissory note that the maker fails to pay or renew on the maturity date |
| proceeds | amount of cash actually received when a promissory note is discounted; maturity value minus bank discount |
| protest fee | a fee charged when a discounted note is dishonored |
