Template:M intro repack negotiable instrument: Difference between revisions
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At a high level, debt securities closely resemble promissory notes. They are a form of securitised [[loan]]. | At a high level, debt securities closely resemble promissory notes. They are a form of securitised [[loan]]. | ||
There is some authority from Canada that bearer bonds are not promissory notes, but we are bound to say we are not persuaded by it. The suggestion is as follows: | |||
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A bond is not an unconditional promise to pay, but the bond itself ... is a promise to pay subject to all the conditions referred to in the bond.<ref> | |||
===Negotiability=== | |||
All this is further confused if the holder of a bill of exchange is entitled to negotiate it — to sell it, effectively, in the secondary market to a random third party. | All this is further confused if the holder of a bill of exchange is entitled to negotiate it — to sell it, effectively, in the secondary market to a random third party. | ||
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You might think there is some scope for fraud here, and you might be right. There are many provisions on the Bills of Exchange act about that. | You might think there is some scope for fraud here, and you might be right. There are many provisions on the Bills of Exchange act about that. | ||
===History: Lord Mansfield and all that=== | ===History: Lord Mansfield and all that=== | ||