Who are the parties to a negotiable instrument?
Meanings of maker/drawer, drawee, payee, holder, holder in due course, endorser, endorsee, endorsement, drawee in the case of need, Acceptor for honour, who are parties to a negotiable instrument is explained below. Maker/drawer: the person who makes or executes the note promising to pay the amount stated therein. Drawee: The person directed to pay the…
Read article What is the difference between Bills of Exchange and Promissory Note?
A promissory note or bill of exchange or cheque payables either to the order or bearer are deemed as the instruments under negotiable instrument acts of 1881. The promissory note is actually an undertaking from the debtor to pay a certain sum of amount to the creditor or to his order. The bill of exchange…
Read articleCommon loan application format for MSME loans up to Rs.2 Crore revised
As per RBI’s advise Indian Banks Association made certain changes in the current common loan application format for MSME loans and circulated to its member banks for adoption.The revised format for the common loan application is increased up to Rs.2 Crore. This is in view of enhancement in CGTMSE coverage up to Rs.2 crore from…
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What is the difference between Lien and Pledge?
Basically, lien and pledge are forms of the right to retain goods for the same purpose i.e. both are security interest options for payment of a debt. Though they look identical; there are certain differences which this article identifies herein. Lien: Lien is akin to bailment. It is the right to retain goods or securities…
Read article Difference between Assignment and Negotiation
An assignment is when the rights, title, and interest in debts due or accruing due to a person are transferred to another person. The debts which are sought to be assigned may be present, future, conditional or contingent charge by way of assignment can be created under actionable claim. Transfer of Life Insurance Policy, National…
What is the effect of “not negotiable” mark on a cheque?
Section 130 of Negotiable acts 1881 provides that ‘a person taking a cheque crossed generally or specially bearing in either case the words ‘not negotiable’ shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had’. According to above…
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