Saturday, November 12, 2011

Lesson-3 regarding General Banking


Question:  What is Endorsement ?
Answer:
Ø     Putting signature on the back of the instrument by the payee for negotiation.
Ø     Only payee can endorse a cheque.

Question: What is Allonge ?
Answer:
A paper attached to a negotiable instrument to enable writing endorsements when the back of the bill is full. An allonge is rare because bills of exchange are no longer very common.

Question: What is Payment in due Course ?
Answer:
Payment in accordance with the
Ø     Apparent tenor of the instrument
Ø     Payment in good faith & with out negligence.
Ø     Payment to a person who is entitled to receive the money.

Question: Who is Holder?
Answer:
Ø     Payee (who is entitled to receive the money)
Ø     In possession of the instrument

Related post



No comments:

Post a Comment