Promissory Note, Defined
Sec. 184. Promissory note, defined.
A negotiable promissory note within the meaning of this Act is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to order or to bearer. Where a note is drawn to the maker's own order, it is not complete until indorsed by him.
SPECIAL TYPES OF PROMISSORY NOTES
1. Certificate of deposit
2. Bonds
3. Bank notes
4. Due bills
CERTIFICATE OF DEPOSIT
> Written acknowledgment by a bank of the receipt of money on deposit which the bank promises to pay to the depositor, bearer, or to some other person or order
BONDS
> A promise, under seal to pay money
> More formal in character
> Runs for a longer period of time
> Issued under different legal circumstances
CLASSES OF BONDS
1. Mortgage bonds
2. Equipment bonds
3. Collateral trust bonds
4. Guaranteed bonds
5. Debentures
6. Income bonds
7. Convertible
8. Redeemable
9. Registered bonds
10. Coupon bonds