Chapter 25

A signed writing that contains an unconditional promise or order to pay an exact amount, either on demand or at a specific future time. Recall that writings include electronic records.

The first delivery of an instrument by the maker or drawer...for the purpose of giving rights on the istrument to any person.

An unconditional written order that involves three parties. The drawer, drawee, and payee. The most common type is a check.

The party creating the draft

The other party that is ordered to pay money, usually to a third party

A third party in a draft receiving payment

This is the drawee's written promise to pay the draft when it comes due.

In this, the seller of the goods is both the drawer and the payee. The buyer to whom credit is extended is the drawee. Essentially, the draft orders the buyer to pay a specified amount to the seller, usually at a stated time in the future.

When a draft orders the buyer's bank to pay, it is this. These are commonly used in international trade.

The most commonly used type of draft. These are demand instruments because they are payable on demand.

A written promise made by one person to pay another a specified sum. It can be made payable at a definite time or on demand.

One who makes a promissory note

This is another type of note. This is issued when a party deposits funds with a bank and the bank promises to repay the funds, with interest, on a certain date. The bank is the maker of the note, and the depositor is the payee.

Nearly any symbol executed or adopted by a person with the intent to authenticate a written or electronic document can be this. It can be made by a device, such as a rubber stamp, or a thumbprint. It can consist of any name, including a trade or assumed name, or a word, mark, or symbol.

This is a drawee who has accepted, or agreed to pay, an instrument when it is presented later for payment.

This occurs when a demand to either pay or accept an instrument is made by or on behalf of a person entitled to enforce the instrument. In other words,
this occurs when a person brings the instrument
to the appropriate party for payment or acceptance.

This allows the payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a specified event occurs.

Any person in possession of a negotiable instrument that is payable either to the bearer or to an identified person that is the person in possession.

This allows the date of maturity to be extended into the future. The interval of the extension must be specified if the right to extend the time of payment is given to the maker or the drawer of the instrument.

An instrument that is payable (1) "to the order of an identified person" or (2) "to an identified person or order". An identified person is the person "to whom the instrument is initially payable" as determined by the intent of the maker or drawer.

An instrument that does not designate a specific payee.

Refers to a person in possession of an instrument that is payable to ... or indorsed in blank (with a signature only)/