Finance-Kinds of Endorsement
Kinds of Endorsement
The main types of endorsements are as under:--
(1) Blank or general endorsement. If the holder of the instrument signs his name only and delivers it to the endorsee, it is called general or blank endorsement.
(2) Full endorsement. It contains not only the signature of the endorser but specifies the endorsee or to his order also.
(3) Restrictive endorsement. Here the endorser uses such words in endorsement which restricts further negotiation and transfer of bills.
(4) Sans Recourse endorsement. In this type of endorsement, the endorser refuses to accept any liability on the instrument to any subsequent party in case of dishonor of the instrument.
(5) Conditional endorsement. It contains an order to pay only when a condition expressly laid down by the endorser is met with.
(6) Partial endorsement. If contains an order to pay only a part of the amount mentioned in the instrument. This type of endorsement is not valid in law.
(7) Facultative endorsement. If refers to waiver of some right at the time of endorsing by adding appropriate words by the endorser. What is Presentment?
Presentment
A Grand Jury statement that a crime was committed; a written notice, initiated by a grand jury, that states that a crime occurred and that an indictment should be drawn.
Making a demand for payment of a promissory note when it is due
A report to a court by a grand jury, made on its own initiative without a request or presentation of evidence by the local prosecutor, that a "public" crime (illegal act by public officials or affecting the public good) has been committed.
Requirements of Negotiable Instruments
To be valid a negotiable instrument must meet four requirements.
First, itmust be in writing and signed by the maker or drawee. Second, it must contain an unconditional promise (promissory note) or order (bill of exchange) to pay a certain sum of money and no other promise except as authorized by the Uniform Commercial Code (UCC). Third, it must bepayable on demand or at a definite time. Finally, it must be payable either to order or to bearer.
“Holder in Due Course”
Legal term for an original or any subsequent holder of a negotiable instrument (check, draft, note, etc.) who has accepted it in good-faith and has exchanged something valuable for it. For example, anyone who accepts a third-party check is a holder in due course. He or she has certain legal rights, and is presumed to be unaware that (if such were the case) the instrument was at any time overdue, dishonored when presented for payment, had any claims against it, or the party required to pay it has valid reason for not doing so. Also called protected holder, or bona fide holder for value.
Advantages and Disadvantages of Checking Deposit
Advantages
Check cashing, access and security-The main benefits of checking account is to save that charged by storefronts and that provide check cashing services, and ability to access funds through writing checks, rather than carrying cash with you. They keep the fund in secure environment.
Direct Deposit- Checking account saves your time and energy affiliated with depositing check yourself, by having paychecks automatically deposited to checking account.
Disadvantages
Account fees-The fees affiliated with using it is one of the disadvantages of a checking account like fees per service fees that include talking with customer service or a flat monthly rate.
Over Draft-Biggest disadvantages is overdraft fees using checking account. If the overdraft is a even few cents then bank charges overdraft fees on that.
Requisite of Endorsement
The main types of endorsements are as under:--
(1) Blank or general endorsement. If the holder of the instrument signs his name only and delivers it to the endorsee, it is called general or blank endorsement.
(2) Full endorsement. It contains not only the signature of the endorser but specifies the endorsee or to his order also.
(3) Restrictive endorsement. Here the endorser uses such words in endorsement which restricts further negotiation and transfer of bills.
(4) Sans Recourse endorsement. In this type of endorsement, the endorser refuses to accept any liability on the instrument to any subsequent party in case of dishonor of the instrument.
(5) Conditional endorsement. It contains an order to pay only when a condition expressly laid down by the endorser is met with.
(6) Partial endorsement. If contains an order to pay only a part of the amount mentioned in the instrument. This type of endorsement is not valid in law.
(7) Facultative endorsement. If refers to waiver of some right at the time of endorsing by adding appropriate words by the endorser. What is Presentment?
Presentment
A Grand Jury statement that a crime was committed; a written notice, initiated by a grand jury, that states that a crime occurred and that an indictment should be drawn.
Making a demand for payment of a promissory note when it is due
A report to a court by a grand jury, made on its own initiative without a request or presentation of evidence by the local prosecutor, that a "public" crime (illegal act by public officials or affecting the public good) has been committed.
Requirements of Negotiable Instruments
To be valid a negotiable instrument must meet four requirements.
First, itmust be in writing and signed by the maker or drawee. Second, it must contain an unconditional promise (promissory note) or order (bill of exchange) to pay a certain sum of money and no other promise except as authorized by the Uniform Commercial Code (UCC). Third, it must bepayable on demand or at a definite time. Finally, it must be payable either to order or to bearer.
“Holder in Due Course”
Legal term for an original or any subsequent holder of a negotiable instrument (check, draft, note, etc.) who has accepted it in good-faith and has exchanged something valuable for it. For example, anyone who accepts a third-party check is a holder in due course. He or she has certain legal rights, and is presumed to be unaware that (if such were the case) the instrument was at any time overdue, dishonored when presented for payment, had any claims against it, or the party required to pay it has valid reason for not doing so. Also called protected holder, or bona fide holder for value.
Advantages and Disadvantages of Checking Deposit
Advantages
Check cashing, access and security-The main benefits of checking account is to save that charged by storefronts and that provide check cashing services, and ability to access funds through writing checks, rather than carrying cash with you. They keep the fund in secure environment.
Direct Deposit- Checking account saves your time and energy affiliated with depositing check yourself, by having paychecks automatically deposited to checking account.
Disadvantages
Account fees-The fees affiliated with using it is one of the disadvantages of a checking account like fees per service fees that include talking with customer service or a flat monthly rate.
Over Draft-Biggest disadvantages is overdraft fees using checking account. If the overdraft is a even few cents then bank charges overdraft fees on that.
Requisite of Endorsement