13 Apr Negotiable Instruments
What Are Negotiable Instruments?
Definition of Negotiable Instruments: Negotiable Instruments are promissory notes on which the written right is strictly adhered to in the year, so that the right can only be requested with this document and transferred with this document. Negotiable instruments are in the hands of the creditor or the right holder. It shows the promise of the debtor and the right of the creditor. There are significant differences from ordinary promissory notes to be received. in order to understand these differences, especially the properties of the Negotiable Instruments must be known.
Properties Of Negotiable Instruments:
– The right must be transferable.
– Rights should be assessed in cash.
– There’s a tight bond between right and deed. Without the deed, the right cannot be claimed and transferred.
– The principle of abstraction is in effect. The underlying debt relationship that causes the bond to be issued cannot be understood from the precious documents.
– Types of Negotiable Instruments are specified in the law in a limiting number.
– Negotiable instruments are subject to strict form requirements.
Transfer Forms Of Negotiable Instruments:
Nama written deed: it is a deed on which the name of the first creditor is written and does not contain his record (giving others the right to transfer not only the deed, but also the actual claim which causes the deed to be written). The transfer and the results of the transfer are subject to the transfer procedures that you will receive.
Written deed: it is a deed that bears the name of the first creditor of the deed, but is also registered under his command (or, in some cases, this record is deemed to exist). Bills, policies and checks are considered to have this record. Therefore, if it is not given any other form (nama or bearer), it is considered by law to be a written deed. The promissory notes written on the order may be transferred by endorsement and delivery.
Bearer’s note: it is a note that whoever is the bearer of the goods will be considered the rightful owner. Therefore, there is no special shape for the transfer in such bills. It is sufficient for the bearer to hand the deed to the person he wants to transfer it to. The bond and policy are not written to the bearer, but the check can be written to the bearer.
Types Of Negotiable Instruments:
4.1. Exchange Notes: exchange notes are negotiable instruments that contain the receipt of money. The debtor of the exchange note undertakes to pay the bearer the amount written on the note. Bills, policies and cheques are accepted as exchange notes. Exchange notes have some characteristics.
The properties of exchange notes are as follows::
– Includes the right to a credit.
An international quality.
– It is the founding nature of a debt relationship.
– The principle of independence of signatures and declarations applies.
– To be paid, the deed must be submitted.
– Must comply with the required form requirements.
– It’s a written deed.
– The signers of the deed, even if they have signed as a guarantor, are in a fiduciary debtor state.
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