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Template:M intro repack negotiable instrument: Difference between revisions
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Template:M intro repack negotiable instrument (view source)
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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]]. | ||
===Negotiability=== | ===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. | ||
If it is a | If it is a “bearer” bill, one can negotiate it by simple delivery. If the bill is made out to specified payee, the payee can “indorse” it, by signing it. | ||
You might think there is some scope for fraud here, and you might be right. There are many provisions on the Bills of Exchange | 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 to manage that contingency. | ||