...interest at the yearly rate of ___8__% on the unpaid balance as specified below. 3. Payment Date. [X] Borrower will pay the entire amount of principal and interest on or before ________04/20/2018___________. [ ] Borrower will pay the entire amount of principal and interest on or before the earlier of (1) the occurrence of ___________________________________________, or (2) _______________________________________________________________. 4. Prepayment. Borrower may prepay all or any part of the principal without penalty. 5. Security. [ ] This is an unsecured note. [ ] Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by a security agreement and Uniform Commercial Code Financing Statement giving Lender a security interest in certain equipment, fixtures, inventory, or other assets, as described in the security agreement, of the business known as __________ Je T’aime Inc._________________________ ____________________________________________________________________. [ ] Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by the [choose one: mortgage / deed of trust] covering the real estate commonly known as ____________________________ and more fully described as follows: _____________________________________. 6. Collection Costs. If Lender prevails in a lawsuit...
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...RBI 2012-13/358 IDMD.PCD. 07 /14.01.02/2012-13 January 1, 2013 All market participants Dear Sir/Madam, Guidelines for Issue of Commercial Paper (CP) In the light of the recent developments in the financial markets, the directions applicable to issuance of CP have been reviewed in consultation with the Technical Advisory Committee on Money, Forex and Government Securities Market. 2. A copy of the RBI Notification No IDMD.PCD. 1284 /14.01.02/2012-13 dated October 16, 2012, consolidating and amending all earlier directions issued in this regard and published in the Gazette of India is enclosed. Yours faithfully, (K K Vohra) Chief General Manager The Gazette of India EXTRAORDINARY Part III – Section 4 Published by Authority RESERVE BANK OF INDIA NOTIFICATION Mumbai, October 16, 2012 Reserve Bank Commercial Paper Directions, 2012 Whereas the Reserve Bank of India, in exercise of the powers conferred by Sections 45J, 45K, 45L of the Reserve Bank of India Act, 1934, and of all the powers enabling it in this behalf, notified the Non-Banking Companies (Acceptance of Deposits through Commercial Paper) Directions 1989 vide Notification No.IECD.1/87(CP)-89/90 dated December 11, 1989; And whereas the said directions having been amended from time to time vide Notification No.IECD.14/08.15.01/96-97 dated September 6, 1996; Notification No.IECD.21/08.15.01/97-98 dated June 17, 1998, and Notification No IECD 3/08.15.01/2000-2001 dated October 10, 2000 respectively; And whereas...
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...1-1 A Modern Financial System—An Overview 1-2 Learning Objectives • Explain the functions of a financial system • The main types of financial institutions • Describe the main classes of financial instruments issued in a financial system • The flow of funds between savers / borrowers • Distinguish between various types of financial markets according to function • Appreciate the importance of globalisation • Understand the effects and consequences of a financial crisis on a financial system and economy 1-3 1 Functions of a Financial System • Money – Acts as medium of exchange – Solves the divisibility problem, i.e. where medium of exchange does not represent equal value for the p q parties to the transaction – Facilitates saving – Represents a store of wealth 1-4 Functions of a Financial System (cont.) • Role of markets – Facilitate exchange of goods and services by bringing opposite parties together establishing rates of exchange, i.e. prices • Financial Markets consist of: • Surplus units – Savers of funds available for lending • Deficit units – Borrowers of funds for capital investment and consumption 1-5 1.1 Functions of a Financial System (cont.) 1-6 2 Functions of a Financial System (cont.) • Financial instrument – Issued by a party raising funds, acknowledging a financial commitment and entitling the holder to specified future cash flows • Double coincidence of wants satisfied – A transaction between two parties that meets their...
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...Money Market Products | | | | | Money market products (T-bills, Commercial Paper and Banker’s Acceptances) are short-term fixed-income products that are sold at a discount and then mature at face value. The difference between your purchase price and par value is your return.Learn more about: * T-Bills * Banker’s Acceptances (BAs) * Commercial Paper * Crown Corporate PaperT-Bills * What are they? Treasury Bills (T-bills) are short-term debt instruments issued by both the US and Canadian governments. Similar to Federal T-bills, Provincial T-bills and promissory notes are backed in full by the issuing province. Their many attractive features make T-bills popular investment vehicles for individual, institutional, and corporate investors. T-bills offer the highest possible level of financial security. * Term/Liquidity T-bills have a maturity of one year or less and are issued in maturity terms of 30 days, 60 days, 90 days, 6 months, or one year. T-bills are highly liquid and many investors choose to hold them instead of holding cash. They may be sold at any time. * Risk/Return T-bills are considered very safe because they are fully guaranteed by the issuing government, however; they offer considerably lower returns than most other securities. * Minimum Investment Amount The minimum Par Value for purchasing a T-Bill is $10,000.00, trading in increments of $1,000.00. * Income The difference between your purchase price and par value is your return, and is...
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...HOLDER IN DUE COURSE The phrase ‘Holder in Due Course’ shortens considerable the heavy English equivalent ‘bona fide holder for value without notice’ and both the Indian and English Acts have adopted this phrase. Sec. 9 of the Negotiable Instruments Act stresses on a more stringent condition on a Holder in Due Course as compared to one under Section 29 (1) (b) of the Bills of Exchange Act, 1882. HE must not only have acquired the bill, note or cheque for valid consideration but should have acquired the instrument without having sufficient cause to believe that any defect existed in the title of the person from whom he received the instrument. This condition requires that he should act in good faith and with reasonable caution. However, just failure to prove bona fides, or absence of negligence on his part would adverse his claim. Section 9 of the Negotiable Instrument deals with the concept of Holder In Due Course. It is essential that a person who claims to be a holder in due course must show that he collected the instrument for valuable and lawful consideration, but Court cannot look into such lawful and valuable consideration. However, where the bona fides of the transaction is impeached, the extent of the consideration given is a factor that the court will consider in determining the question of bona fides. Consideration is something which not only party regards but the law can regard as having some value. It can be either positive in that, it requires doing of something...
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...FINC/070 CO PY IBS Center for Management Research Commercial Paper Market in India D O N O T This case was written by Nitya Nand Tripathi, IBS Center for Management Research and D.S. Chary, IBS, Hyderabad. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2011, IBS Center for Management Research. All rights reserved. To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org www.icmrindia.org FINC/070 Commercial Paper Market in India “Volumes of commercial papers will increase because it will be cheaper for companies to raise money through this route rather than loans from banks.”1 - Paritosh Kashyap, www.livemint.com, in March 2010 CO PY “Close to $210 billion have flown into the Indian debt market this calendar year alone. Investment by local banks in commercial paper has surged from Rs 25.188 billion in March 2010 to Rs 37.863 billion in August. Is the moribund Indian debt market finally showing signs of life 18 years after it was opened up to global money?… The current sets of circumstances have been favorable for the Indian bond market.”3 - Abheek Barua, The Economic Times4, November 2010 “CP issuances are going to rise...
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...Rogers and Blythe sold land to Holly Hill Acres, Ltd. Holly Hill Acres, Ltd. used a promissory note and a purchase money mortgage as consideration for the transaction. The note contained language “This note with interest is secured by a mortgage on real estate made by the maker in favor of said payee. The terms of said mortgage are by reference are made a part hereof.” Subsequently, Rogers and Blythe used the note and mortgage to secure their own loan from Charter Bank of Gainesville. Within a few months, Rogers and Blythe stopped paying their loan to Charter. Charter sued to recover from Holly Hill’s note and mortgage. Negotiable instruments are an important component of transactions between unrelated parties when doing business. Negotiable instruments are regulated by Article 3 of the UCC. Article 3 requires a document must meet certain criteria in order to be classified as a negotiable instrument. The instrument must be in writing, permanent and portable, signed by the maker, and it must be an unconditional promise to pay. It has to state a fixed sum of money and not require any additional undertaking besides the payment. It also has to be payable on demand or at a definite time and be payable to order or bearer. If these conditions are met, the holder of the negotiable instrument can transfer their interest in the instrument to a third party. The third party taking the negotiable instrument from the holder becomes the holder in due course. The promissory note...
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...Subject: Principles of Insurance and Banking Course Code: FM-306 Lesson: 1 Author: Dr. S.S. Kundu Vetter: Dr. B.S. Bodla NEGOTIABLE INSTRUMENTS ACT, 1881 STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 Objectives Introduction Meaning of Negotiable Instruments Characteristics of a negotiable instrument Presumptions as to negotiable instrument Types of negotiable Instrument 1.5.1 Promissory notes 1.5.2 Bill of exchange 1.5.3 Cheques 1.5.4 Hundis 1.6 Parties to negotiable instruments 1.6.1 Parties to Bill of Exchange 1.6.2 Parties to a Promissory Note 1.6.3 Parties to a Cheque 1.7 1.8 Negotiation 1.7.1 Modes of negotiation Assignment 1.8.1 Negotiation and Assignment Distinguished 1.8.2 Importance of delivery in negotiation 1.9 Endorsement 1.10 Instruments without Consideration 1.11 Holder in Due Course 1.12 Dishonour of a Negotiable instrument 1.13 Noting and protesting 1.14 Summary 1.15 Keywords 1.16 Self Assessment Questions 1.17 References/Suggested readings 1.0 OBJECTIVES After reading this lesson, you should be able to• • • • Understand meaning, essential characteristics and types of negotiable instruments; Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; Explain capacity and liability parties to a negotiable instruments; and Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. 1.1 INTRODUCTION The Negotiable Instruments...
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...the instrument is responsible for the loss. An example would be if an individual impersonates a person for whom a check has been cut or misrepresents himself as that person's agent. If the impostor receives the check, endorses it, and cashes it at the drawer's bank, the drawer is responsible for the loss, because the bank accepted the endorsement in good faith. The bank may be responsible for a percentage of the loss if it failed to exercise "ordinary care"; for example, if the bank did not check the impostor's identification. The imposter rule is based on the assumption that between the bank and the drawer, the drawer is in a better position to prevent the loss. The Fictitious Payee Rule is a principle of commercial law that if a drawer or maker issues commercial paper to a payee whom the drawer or maker does not actually intend to have any interest in the instrument, an ensuing forgery of the payee's name will be effective to pass good title to later transferees. Ordinarily, the drawer of a check is not liable on a forged endorsement. The "fictitious payee" rule is an exception to this principle, as it allocates the loss to the drawer if a person signing as or on behalf of a drawer intends the payee to have no interest in the instrument. The policy behind the fictitious payee rule is that it seeks to ensure that, the loss should be placed on the drawer of the check, rather than on the drawee or the depositary bank that took the check for collection because the drawer is in...
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...Subject: Principles of Insurance and Banking Course Code: FM-306 Lesson: 1 Author: Dr. S.S. Kundu Vetter: Dr. B.S. Bodla NEGOTIABLE INSTRUMENTS ACT, 1881 STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 Objectives Introduction Meaning of Negotiable Instruments Characteristics of a negotiable instrument Presumptions as to negotiable instrument Types of negotiable Instrument 1.5.1 Promissory notes 1.5.2 Bill of exchange 1.5.3 Cheques 1.5.4 Hundis 1.6 Parties to negotiable instruments 1.6.1 Parties to Bill of Exchange 1.6.2 Parties to a Promissory Note 1.6.3 Parties to a Cheque 1.7 1.8 Negotiation 1.7.1 Modes of negotiation Assignment 1.8.1 Negotiation and Assignment Distinguished 1.8.2 Importance of delivery in negotiation 1.9 Endorsement 1.10 Instruments without Consideration 1.11 Holder in Due Course 1.12 Dishonour of a Negotiable instrument 1.13 Noting and protesting 1.14 Summary 1.15 Keywords 1.16 Self Assessment Questions 1.17 References/Suggested readings 1.0 OBJECTIVES After reading this lesson, you should be able to• • • • Understand meaning, essential characteristics and types of negotiable instruments; Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; Explain capacity and liability parties to a negotiable instruments; and Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. 1.1 INTRODUCTION The Negotiable Instruments Act...
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...Goldman Sachs Group use Business Principles rather than a Mission Statement: 1. Our clients' interests always come first. Our experience shows that if we serve our clients well, our own success will follow. 2. Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us. Our continued success depends upon unswerving adherence to this standard. Vision A commitment to integrity, team work and the pursuit of excellence is at the core of everything we do History Goldman Sachs was founded in 1869 by German immigrant Marcus Goldman when he opened a commercial paper business on New York City's Pine Street. The...
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...B. 3:30-5:30 PM Title I. - Negotiable Instruments in General Article I. - Form and Interpretation. SEC. 1. An instrument to be negotiable must conform to the following requirements: 1. It must be in writing and signed by the maker or drawer. 2. Must contain an unconditional promise or order to pay a sum certain in money. 3.Must be payable on demand or at a fixed or determinable future time. 4. Must be payable to the order or to bearer; and, 5. Where the instrument is addressed to a drawee,he must be named or otherwise indicated therein with reasonable certainty. Writing And Signature Writing and signature of maker or drawer are essentialto negotiability. Our natural conception of a negotiable instrument is that of a written paper. "Writing" includes print.12 The substance of the impression may be ink or lead.13 The former is of course preferable from the standpoint of sound and safe business practice. Signature. An instrument to be negotiable must be signed. "No person is liable on the instrument whose signature does not appear thereon, except as herein otherwise expressly provided. But one who signs in a trade or assumed name will be liable to the same extent as if he had signed in his own name." Example 8. Anotesigned "Western Novelty Co., Unincorporated" binds all who go under that trade name, assuming that the note is given under the authority of those sought to be held. Printed or lithographed signature is a legal signature,15 but not good practice except...
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...Commercial Paper Thomas K. Hahn C ommercial paper is a short-term unsecured promissory note issued by corporations and foreign governments. For many large, creditworthy issuers, commercial paper is a low-cost alternative to bank loans. Issuers are able to efficiently raise large amounts of funds quickly and without expensive Securities and Exchange Commission (SEC) registration by selling paper, either directly or through independent dealers, to a large and varied pool of institutional buyers. Investors in commercial paper earn competitive, market-determined yields in notes whose maturity and amounts can be tailored to their specific needs. Because of the advantages of commercial paper for both investors and issuers, commercial paper has become one of America’s most important debt markets. Commercial paper outstanding grew at an annual rate of 14 percent from 1970 to 1991. Figure 1 shows commercial paper outstanding, which totaled $528 billion at the end of 1991. This article describes some of the important features of the commercial paper market. The first section reviews the characteristics of commercial paper. The second section describes the major participants in the market, including the issuers, investors, and dealers. The third section discusses the risks faced by investors in the commercial paper market along with the mechanisms that are used to control these risks. The fourth section discusses some recent innovations, including asset-backed commercial...
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...Memo To: Head Accountant of Tyler Corporation From: xxxx, Assistant Accountant of Tyler Corporation Date: January 15, 2011 Re: Classification of Note Payable on the December 31, 2010 Balance Sheet After checking the Generally Accepted Accounting Principles, I want to explain how to classify the $100,000 note payable on the December 31, 2010 balance sheet. According to Accounting Standard Codification 470-10-45-14, “A short-term obligation shall be excluded from current liabilities if the entity intends to refinance the obligation on a long-term basis”, and “After the date of an entity's balance sheet but before that balance sheet is issued or is available to be issued, a long-term obligation or equity securities have been issued for the purpose of refinancing the short-term obligation on a long-term basis. If equity securities have been issued, the short-term obligation, although excluded from current liabilities, shall not be included in owners' equity.” Tyler Corporation has the same situation above. On January 5, 2011, Tyler Corporation sold 2,000 shares of its $10 par common stock for $80,000. It intends to use these plus $20,000 cash on hand to repay the note payable on March 6. Therefore, the company should get $80,000 common stock out of owner’s equity and report the $80,000 as note payable in long-term liabilities on the December 31, 2010 balance sheet. For the $20,000 cash on hand, the company should report it as note payable in current liabilities on...
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...Short essay on the negotiable instruments in business law The law relating to “negotiable instruments” is contained in the Negotiable Instruments Act, 1881. The Act extends to the whole of India. The Negotiable Instruments Act, 1881, has been amended for more than a dozen times so far. The latest in the series are: (i) the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (effective from 1st April, 1989), and (ii) the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 (effective from 6th February, 2003). The provisions of all the Amendment Acts have been incorporated at relevant places in Part IV of this book. The Negotiable Instruments Act, 1881, as amended up-to-date, deals with three kinds of negotiable instruments, i.e., Promissory Notes, Bills of Exchange and Cheques. Definition: The word negotiable means ‘transferable by delivery,’ and the word instrument means ‘a written document by which a right is created in favour of some person.’ Thus, the term “negotiable instrument” literally means ‘a written document transferable by delivery.’ According to Section 13 of the Negotiable Instruments Act, “a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.” “A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees”...
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