Exam 22: Promissory Notes and Drafts

​ Coupon bonds carry detachable individual coupons to be presented for payment when due.

The maker of a promissory note has accountability for: ​

​ A secured bond or note issued by a government is called a debenture.

A voucher's check is a check drawn by one bank on another bank.

A is a written contract obligation, usually under seal, generally issued by a corporation, a municipality, or a government, that contains a promise to pay a fixed amount of money at a set or determinable future time.

The drawee's signature alone on the draft is not sufficient to constitute a valid acceptance.

In the case of a time draft, the holder can require payment of the paper before it matures.

​ Generally, the drawer draws a trade acceptance at the time goods are sold.

A check can be issued by a post office, bank, and express company.

A predated check is unlawful, but a postdated check is not.

What duties does a bank owe its depositor/drawer?

​ An acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money is known as a certificate of deposit.

Which of the following is true of a collateral note?

Explain the duties of a bank customer regarding checks drawn on the customer's account.

A is an ordinary check accepted by an official of the drawee bank

Which of the following best describes a debenture?

A check that is presented more than six months after its date is commonly called a stale check.

​ A foreign draft is one that shows on its face that it is drawn or payable outside the United States.

A is a draft payable on presentation by the payee or holder.

A is a promise by a bank to repay a sum of money received by it