...In India, there is reason to believe that instrument to exchange were in use from early times and we find that papers representing money were introducing into the country by one of the Mohammedan sovereigns of Delhi in the early part of the fourtheenth century. The word 'hundi', a generic term used to denote instruments of exchange in vernacular is derived from the Sanskrit root 'hund' meaning 'to collect' and well expresses the purpose to which instruments were utilised in their origin. With the advent of British rule in India commercial activities increased to a great extent. The growing demands for money could not be met be mere supply of coins; and the instrument of credit took the function of money which they represented. Before the enactment of the Negotiable Instrument Act, 1881, the law of negotiable instruments as prevalent in England was applied by the Courts in India when any question relating to such instruments arose between Europeans. When then parties were Hindu or Mohammedans, their personal law was held to apply. Though neither the law books of Hindu nor those of Mohammedans contain any reference to negotiable instruments as such, the customs prevailing among the merchants of the respective community were recognised by the courts and applied to the transactions among them. During the course of time there had developed in the country a strong body of usage relating to “hundis”, which even the Legislature could not without hardship to Indian bankers and merchants...
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...to determine if the person currently possessing the instrument qualifies as a holder in due course. The basic definition is found in §3-302(a), which you should read carefully. Official Comment 4 to §3-302 makes it clear that the payee can qualify as a holder in due course in some rare situations. Normally, the payee is so involved in the underlying transaction that he or she has notice of problems affecting payment obligations, and thus cannot be a holder in due course. But the examples given in Official Comment 4 describe fact patterns where the payee is innocent of such knowledge and can therefore qualify for the protection given to holders in due course. See also Eldon’s Super Fresh Stores, Inc. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 296 Minn. 130, 207 N.W.2d 282, 12 U.C.C. Rep. Serv. 490 (1973), for an example of the payee as a holder in due course. 35 36 3. Holders in Due Course Subsection (c) gives a list of extraordinary transactions — creditors seizing instruments by judicial process, the sale of an inventoried business (a ‘‘bulk transaction’’), or the appointment of the administrator of an estate containing negotiable instruments — in which the transferee is statutorily denied holder in due course status.1 A. ‘‘Holder’’ Note first of all that in order to be a holder in due course the possessor of the instrument must qualify as a holder. This means that the instrument must be technically negotiable and must have been technically negotiated into the hands...
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...Running Head: Negotiable Instruments Negotiable Instruments ACC 543 January 9, 2012 This memo attempts to analyze financial decisions problems with creating lines of credit from banks for the purpose of technological infrastructure investments. Explaining negotiable instruments will occur with recommended financing transactions. Comparing the main and secondary liabilities of the parties to the negotiable instruments and examining the parts of the secured transaction the bank recommends. This will be included in the memo. Negotiable instruments are transferable instruments used as a means of money for trading. These instruments are a promise to pay such as checks, drafts, promissory notes, and certificate of deposits. “A negotiable instrument has three principal attributes: (1) an asset or property passes from the transferor to the transferee by mere delivery or endorsement of the instrument, (2) a transferee accepting the instrument in good faith and for value obtains an indefeasible title and may sue on the instrument in his or her name, and (3) a notice of the transfer is not given to the party liable in the instrument. “ (Business Dictionary, 2012) This business wants to create a line of credit from the bank to invest money in technological infrastructure. A draft can be the negotiable instrument to use with a line of credit. Drafts contain three parties, the drawer, the drawee, and the payee. The drawer creates instructions to demand the drawee...
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...THE NEGOTIABLE INSTRUMENT LAW SECTION . 5. Additional provisions not affecting negotiability. - An instrument which contains an order or promise to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which authorizes the sale of collateral securities in case the instrument be not paid at maturity; or (b) Authorizes a confession of judgment if the instrument be not paid at maturity; or (c) Waives the benefit of any law intended for the advantage or protection of the obligor; or (d) Gives the holder an election to require something to be done in lieu of payment of money. But nothing in this section shall validate any provision or stipulation otherwise illegal. Acts in addition to payment of money A negotiable instrument must be payable in “a sum certain in money.” (1) General Rule. – As a general rule, the instrument is non-negotiable if it contains a promise or order to do any act in addition to the payment of money. (par. 1.) The prohibition is based on the fact that while one could be indorsed, the other would have to be assigned. (see Sec. 30) EXAMPLES: “I promise to pay or order P1,000.00 and to deliver a horse.” (2) Exceptions. – The law, however, gives exceptions (Sec. 5 [a to d.] to the general rule. a. Sale of collateral securities. EXAMPLE: “I promise to pay P or order the sum of P10,000.00 on November 25,2004...
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...Assignment on Negotiable Instrument Course Title: Legal Environment of International Business Prepared by: Farha Fatema Date of Submission: 28/04/2011 Executive Summary Negotiable instruments are written orders or unconditional promises to pay a fixed sum of money on demand or at a certain time. Promissory notes, bills of exchange, checks, drafts, and certificates of deposit are all examples of negotiable instruments. Negotiable instruments may be transferred from one person to another, who is known as a holder in due course. Upon transfer, also called negotiation of the instrument, the holder in due course obtains full legal title to the instrument. Negotiable instruments may be transferred by delivery or by endorsement and delivery. One type of negotiable instrument, called a promissory note, involves only two parties, the maker of the note and the payee, or the party to whom the note is payable. With a promissory note, the maker promises to pay a certain amount to the payee. Another type of negotiable instrument, called a bill of exchange, involves three parties. The party who drafts the bill of exchange is known as the drawer. The party who is called on to make payment is known as the drawee, and the party to whom payment is to be made is known as the payee. A check is an example of a bill of exchange, where the individual or business writing the check is the drawer, the bank is the drawee, and the person or business...
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...Type of Negotiable Instrument Wiley v. Peoples Bank and Trust Company Marcus Wiley, James Tate, and James Irby were partners engaged in buying and selling used cars under the trade name Wiley, Tate & Irby. Over an extended period of time, the partnership sold a number of automobiles to Billy Houston, a sole proprietor doing business as Houston Auto Sales (Houston). In connection with each purchase, Houston executed and delivered to the partnership a negotiable instrument drawn on the Peoples Bank and Trust Company of Tupelo, Mississippi. Upon delivery of each negotiable instrument, the automobiles were delivered to Houston. Each of the instruments involved in these transactions contained a number of variations in text and form. However, each of them was similar in that each was drawn on a bank, signed by the maker, and contained an unconditional order to pay a sum certain on the demand of the payee. Wiley v. Peoples Bank and Trust Company, 438 F.2d 513, Web 1971 U.S. App. Lexis 11917 (United States Court of Appeals for the Fifth Circuit) What type of negotiable instrument is involved in these transactions? As defined by the Uniform Commercial Code (UCC) negotiable instruments include checks, draft, notes and certificates of deposit. Negotiable instruments must meet certain requirements for transfer. Article 3 of the Uniform Commercial Code states that a negotiable instrument must meet certain requirements. A negotiable instrument should be a substitute for money, act...
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...TYPES OF NEGOTIABLE INSTRUMENTS n Draft: An unconditional order to pay by which the party creating the draft (the drawer) orders another party (the drawee), typically a bank, to pay money to a third party (the payee) -- e.g., a check. n n n n Check: A draft ordering a drawee bank and payable on demand. Time Draft: A draft payable at a time certain. Sight Draft: A draft payable on presentment. Trade Acceptance: A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a specified future time. The buyer accepts the draft by signing and returning it to the seller. n Promissory Note: A written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee) on demand or at a specified future time. Certificate of Deposit: A note by which a bank or similar financial institution acknowledges the receipt of money from a party and promises to repay the money, plus interest, to the party on a certain date. 1 n NEGOTIABLE INSTRUMENTS: AN OVERVIEW n A Negotiable Instrument is a: (1) written instrument, (2) signed by the maker or drawer of the instrument, (3) that contains an unconditional promise or order to pay (4) an exact sum of money (with or without interest in a specified amount or at a specified rate) (5) on demand or at an exact future time (6) to a specific person, or to order, or to its bearer. 2 NEGOTIABILITY: SIGNATURES n For an instrument to be negotiable, it must...
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...THE NEGOTIABLE INSTRUMENTS ACT AND THE NEGOTIABLE INSTRUMENTS (AMENDMENT AND MISCELLANEOUS PROVISIONS) ACT, 2002 Negotiable instruments are of great importance in the business world and by extension in banking. They are instruments for making payments and discharging business obligations What is a Negotiable Instrument? The Negotiable Instruments Act does not define a negotiable instrument but merely states, “ a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer.” (Section 13). This section does not prohibit any other instrument that satisfies the essential features of portability. Justice K. C. Willis defines these as, “ one the property in which is acquired by anyone who takes it bonafide and for value notwithstanding any defect in title in the person from whom he took it.” Thomas defines it in his book “Commerce, Its theory and Practice “A negotiable instrument is one which is, by a legally recognized custom of trade or by law, transferable by delivery in such circumstances that (a) the holder of it for the time being may sue on it in his own name and (b) the property in it passes, free from equities, to a bona-fide transferee for value, notwithstanding any defect in the title of the transferor.” It : (1) entitles a person to a sum of money (2) is transferable (by customs of trade) by delivery, like cash, or by Endorsement and delivery and delivery, and (3) ...
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...1. Negotiable Instruments – written contracts for the payment of money; by its form, intended as a substitute for money and intended to pass from hand to hand, to give the holder in due course the right to hold the same and collect the sum due. 2. Characteristics of Negotiable Instruments: a. negotiability – right of transferee to hold the instrument and collect the sum due b. accumulation of secondary contracts – instrument is negotiated from person to person 3. Difference between Negotiable Instruments from Non-Negotiable Instruments: Negotiable Instruments | Non-negotiable Instruments | Contains all the requisites of Sec. 1 of the NIL | does not contain all the requisites of Sec. 1 of the NIL | Transferred by negotiation | transferred by assignment | Holder in due course may have better rights than transferor | transferee acquires rights only of his transferor | Prior parties warrant payment | prior parties merely warrant legality of title | Transferee has right of recourse against intermediate parties | transferee has no right of recourse | 4. Difference between Negotiable Instruments and Negotiable Documents of Title Negotiable Instruments | Negotiable Documents of Title | Have requisites of Sec. 1 of the NIL | does not contain requisites of Sec. 1 of NIL | Have right of recourse against intermediate parties who are secondarily liable | no secondary liability of intermediate parties | Holder in due course may...
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...Negotiable Instruments On the back of an envelope, Phoebe writes, “I promise to pay Quint or bearer $600 on demand. [Signed] Phoebe.” The type of instrument that is used in this scenario is a promissory note. When a promissory note is present, this is a written promise which involves two parties (Clark, Miller & Cross, 2014). The two parties that are present in a promissory note is the maker (payer) and the payee and the note may be made with a specific date mentioned or on demand-when the payee requests the money (Clark, Miller & Cross, 2014). In the scenario above, the maker is Phoebe and the payee is Quint and it the note is written to indicate that when Quint asks for the $600, Phoebe is to pay it at that time. In order for a note (or any other instrument) to be negotiable it must meet all six of the following requirements. These requirements are (Clark, Miller & Cross, 2014): 1. The instrument must be in writing-Phoebe wrote the promissory note on the back of an envelope. 2. It must be signed by the maker (payer) or the drawer-Phoebe signed the note 3. It must be an unconditional promise to pay-there were no conditions set by Phoebe that may hinder Quint from requesting payment (i.e.-I, Phoebe, will pay Quint the $600 if he calls me no later than noon on the day he requests payment) 4. The note must state a fixed amount of money-Phoebe’s promissory note listed $600. 5. The note must be payable on demand or at a definite amount of time-Phoebe’s...
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...Petitioner, v. THE COURT OF APPEALS, Respondent. EN BANC [G.R. No. L-2516. September 25, 1950.] ANG TEK LIAN, Petitioner, v. THE COURT OF APPEALS, Respondent. Laurel, Sabido, Almario & Laurel, for Petitioner. Solicitor General Felix Bautista Angelo and Solicitor Manuel Tomacruz, for Respondent. SYLLABUS 1. CRIMINAL LAW; ESTAFA" ; ISSUING CHECK WITH INSUFFICIENT BANK DEPOSIT TO COVER THE SAME. — One who issues a check payable to cash to accomplish deceit and knows that at the time had no sufficient deposit with the bank to cover the amount of the check and without informing the payee of such circumstances, is guilty of estafa as provided by article 315, paragraph (d), subsection 2 of the Revised Penal Code. 2. NEGOTIABLE INSTRUMENTS; CHECK DRAWN PAYABLE TO THE ORDER OF "CASH" ; INDORSEMENT. — A check payable to the order of "cash to the person presenting it for payment without the drawer’s indorsement. D E C I S I O N BENGZON, J.: For having issued a rubber check, Ang Tek Lian was convicted of estafa in the Court of First Instance of Manila. The Court of Appeals affirmed the verdict. It appears that, knowing he had no funds therefor, Ang Tek Lian drew on Saturday, November 16, 1946, the check Exhibit A upon the China Banking Corporation for the sum of P4,000, payable to the order of "cash." He delivered it to Lee Hua Hong in exchange for money which the latter handed in the act. On November 18, 1946, the next business day, the check was presented...
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...THE LAW ON NEGOTIABLE INSTRUMENTS Definition of Terms CHAPTER 1 Form and Interpretation Section 1. Form of Negotiable Instruments Commercial Paper – a written promises or obligations that arise out of commercial transactions from the use of such instruments as promissory notes and bills of exchange. Maker – the person issuing a promissory note Drawer – person issuing bill of exchange Money - medium of exchange authorized or adopted by a domestic or foreign government as part of its currency. In literal sense, the term means “cash.” It also includes all legal tender. Legal Tender – that currency which a debtor can legally compel a creditor to accept a payment of a debt in money when tendered by the debtor in the right amount. Non-negotiable Instrument – an instrument which is not negotiable, which does not meet the requirements lay down to qualify an instrument as a negotiable one, or an instrument which in its inception was negotiable but has lost its quality of negotiability. A non-negotiable instrument may not be negotiated but it may assigned or transferred Negotiable Promissory Note – an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money or to bearer. It is commonly referred to as a note. Payee – the party to whom the promise is made or the instrument is payable. Bill of exchange – an unconditional...
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...NEGOTIABLE INSTRUMENTS ACT,1881 Definition of a Negotiable Instrument. The law relating to negotiable instruments is contained in the Negotiable Instruments Act, 1881. It is an Act to define and amend the law relating to promissory notes, bills of exchange and cheques. The Act does not affect the custom or local usage relating to an instrument in oriental language i.e., a Hundi. The term "negotiable instrument" means a document transferable from one person to another. However the Act has not defined the term. It merely says that "A .negotiable instrument" means a promissory note, bill of exchange or cheque payab1e either to order or to bearer. [Section 13(1)] A negotiable instrument may be defined as "an instrument, the. property in which is acquired by anyone who takes it bona fide, and for value, notwithstan~ing any defect of title in the person from whom he took it, from which it follo~s that an instrument cannot be negotiable unless it is such and in such a state that the true owner could transfer the contract or engagement contained therein by simple delivery of instrument" (Willis- The Law of Negotiable Securities, Page 6). According to this definition the following are the conditions of negotiability: (i) The instrument should be freely transferable. An instrument cannot be negotiable unless it is such and in such state that the true owner could transfer by simple delivery or endorsement and delivery. (ii) The person who takes it for value...
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...se "My only mistake was that I shot my mouth off without really doing anything. Naturally, the media made me out to be a joker." - Vijay Kumar Sharma, Chairman, JVG Group, in 1998. The Doomed Depositors In October 1997, the Reserve Bank of India (RBI) banned all non-banking financial companies (NBFCs) of the JVG Group of companies - JVG Finance, JVG Leasing and JVG Securities - from accepting deposits from the public. This was after an investigation revealed that these companies had been accepting deposits in excess of their stipulated limits. Soon after, JVG downed the shutters of several of its offices in small towns of Maharashtra, Uttar Pradesh and Bihar, claiming it had detected huge irregularities in the operations. The closing of the offices created a panic among the depositors and strong voices were raised against the group in the media. In November 1997, JVG hurriedly rented an office in Gurgaon (Haryana) to accommodate irate investors. Hundreds of investors and agents camped on the grounds of the office. The agents (or the field-workers), who raised deposits from investors on behalf of JVG, were extremely worried. They said they could not go back to their local offices without collecting the dues fearing the wrath of the investors. More and more depositors and field workers teemed over the next few days with hopes of getting their money back. The situation seemed rather bleak with rumors of the JVG group being in deep financial crisis. At this point, JVG...
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...LETTER OF TRANSMITTAL June 11, 2012 Tahmina Akter Lecturer Department of Finance Faculty of Business Studies University of Dhaka Dear Madam, It is an immense pleasure for us to submit the term report on “Market and Demand Analysis”, which is prepared as a partial fulfillment of the requirement of course - “Capital Budgeting and project Management” of BBA program under Department of Finance of the Faculty of Business Studies, University of Dhaka. We would like to convey our special thanks and gratitude to you for patronizing our effort & giving us proper guidance. We have tried our best to cover all the relevant fields. We earnestly request you to call us if you think any further work should be done on the topic of the report. Sincerely yours, Name | Roll | FARHANA RAHMAN | 16-04 | FARHA FARZANA | 16-06 | MD. RASEL MIAH | 16-68 | SADIA KAMAL SANCHITA | 16-70 | MARUFA AKHTAR | 16-132 | 16th Batch, Sec: B Department of Finance, Faculty of Business Studies, University of Dhaka Table of contents SerialNo. | Description | Page No. | 01 | Executive Summary | 3 | 02 | Introduction | 4 | 03 | Company Description | 5 | 04 | Product Description | 6 | 05 | Situational Analysis | 7 | 06 | Market Survey | 10 | 07 | Characterization of Market | 14 | 08 | Demand Forecasting | 15 | 09 | Uncertainties | 20 | 10 | Marketing Plan | 21 | 11 | References | 27 | EXECUTIVE SUMMARY ________...
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