Negotiable Instruments

Promissory Note, Defined

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 


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Musikatorni is a musical project by Atty. Ranny Randolf B. Libayan, known for its original song compositions that blend insightful lyrics with captivating melodies.
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