Terminology of Negotiable Insturment (Commercial Paper)

allonge—A separate piece of paper attached to the instrument on which the indorsement is written.
assignee—The party to whom the right has been transferred.
assignment—The transfer of contractual rights by the obligee to another party.
assignor—The party who transfers the right.
bearer paper—Bearer paper is negotiated by delivery: indorsement is not necessary.
blank indorsement—An indorsement that does not specify a particular indorsee. It creates bearer paper.
certificate of deposit (CD)—A two-party negotiable instrument that is a special form of note created when a depositor deposits money at a financial institution in exchange for the institution's promise to pay back the amount of the deposit plus and agreed-upon rate of interest upon the expiration of a set time period agreed upon by the parties.
check—An order by the drawer to the drawee bank to pay a specified sum of money from the drawer's checking accounting to the named payee (or holder).
collateral—Security against repayment of the note that lenders sometimes require; can be a car, a house, or other property.
demand instrument—An instrument payable on demand.
demand note—A note payable on demand.
draft—A three-party instrument that is an unconditional written order by one party that orders the second party to pay money to a third party.
drawee of a check—The financial institution where the drawer has his or her account.
drawee of a draft—The party who must pay the money stated in the draft. Also called the acceptor of a draft.
drawer of a check—The checking account holder and writer of the check.
drawer of a draft—The party who writes the order for a draft.
drawer's negligence—The drawer is liable if his or her negligence led to his or her forged signature or the alteration of a check. The payor bank is not liable in such circumstances.
fictitious payee rule—A rule that says a drawer or maker is liable on a forged or unauthorized indorsement of a fictitious payee.
fixed amount—A requirement of a negotiable instrument that ensures that the value of the instrument can be determined with certainty.
fixed amount of money—A negotiable instrument must contain a promise or order to pay a fixed amount of money.
forged indorsement—The forged signature of a payee or holder on a negotiable instrument.
holder—A person who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or his order, or to bearer, or in blank.
imposter—A person who impersonates a payee and induces a maker or drawer to issue an instrument in the payee's name and to give it to the imposter.
imposter rule—A rule that says if an imposter forges the indorsement of the named payee, the drawer or maker is liable on the instrument and bears the loss.
indorsee—The person to whom negotiable instrument is indorsed.
indorsement for deposit or collection—An indorsement that makes the indorsee the indorser's collecting agent (e.g. for deposit only)
indorsement—The signature (and other directions) written by or on behalf of the holder somewhere on the instrument.
indorser—The person who indorses a negotiable instrument.
instrument—Term that means negotiable instrument.
maker of a CD—The bank (borrower).
maker of a note—The party who makes the promise to pay (borrower).
money—A "medium of exchange authorized or adopted by a domestic or foreign government."
negotiable instrument—A special form of contract that satisfies the requirements established by Article 3 of the UCC. Also called commercial paper.
negotiation—Transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder.
nonnegotiable contract—Fails to meet the requirements of a negotiable instrument and, therefore, is not subject to the provisions of UCC Article 3.
nonrestrictive indorsement—An indorsement that has no instructions or conditions attached to the payment of the funds.
order paper—Order paper is negotiated by (1) delivery and (2) indorsement.
order to pay—A drawer's unconditional order to a drawee to pay a payee.
payable on demand or at a definite time requirement—A negotiable instrument must be payable either on demand or at a definite time.
payee of a CD—The depositor (lender).
payee of a check—The party to whom the check is written.
payee of a draft—The party who receives the money from a draft.
payee of a note—The party to whom the promise to pay is made (lender).
permanency requirement—A requirement of negotiable instruments that says they must be in permanent state, such as written on ordinary paper.
portability requirement—A requirement of negotiable instruments that says they must be able to be easily transported between areas.
promise to pay—A maker's (borrower's) unconditional and affirmative undertaking to repay a debt to a payee (lender).
promissory note—A two-party negotiable instrument that is an unconditional written promise by one party to pay money to another party.
restrictive indorsement—An indorsement that contains some sort of instruction from the indorser.
sight draft—A draft payable on sight. Also called a demand draft.
signature requirement—A negotiable instrument must be signed by the drawer or maker. Any symbol executed or adopted by a party with a present intent to authenticate a writing qualifies as his or her signature.
special indorsement—An indorsement that contains the signature of the indorser and specifies the person (indorsee) to whom the indorser intends the instrument to be payable. Creates order paper.
time draft—A draft payable at a designated future date.
time instrument—An instrument payable (1) at a fixed date, (2) on or before a stated date, (3) at a fixed period after sight, or (4) at a time readily ascertainable when the promise or order is issued.
time note—A note payable at a specific time.
trade acceptance—A sight draft that arises when credit is extended (by a seller to a buyer) with the sale of goods. The seller is both the drawer and the payee, and the buyer is the drawee.
unconditional—Promises to pay and orders to pay must be unconditional in order for them to be negotiable.
unconditional promise or order to pay requirement—A negotiable instrument must contain either an unconditional promise to pay (note or CD) or an unconditional order to pay (draft or check).
unqualified indorsement—An indorsement whereby the indorser promises to pay the holder or any subsequent indorser the amount of the instrument if the maker, drawer, or acceptor defaults on it.
unqualified indorser—An indorser who signs an unqualified indorsement to an instrument.

Some latin terms

Abatement = Removal or stopping of a nuisance.
Ab initio = Latin phrase meaning ‘from the beginning’.
Abjure = To swear not to bear allegiance to another country.
Abscond = To go away without permission or not to return to the court after being
released on bail or to escape from prison.
Actus Reus= Latin phrase meaning ‘Guilty Act’, Act which is forbidden by the Criminal
Law, one of the two elements of a crime.
Ad Idem = Latin phrase meaning ‘in Agreement.’
Adjourn = To stop a meeting for a period, to put off a legal hearing to the later date.
Ad Litem = Latin phrase meaning ‘referring to the case at Law’
Guardian ad Letem = Person who acts on behalf of a minor who is a
defendant in a court case.
Ad valorem = Latin phrase meaning ‘according to value’.
Alieni Juris= Latin phrase meaning ‘of another’s right’. A person (such as minor) who
has a right under the authority of a guardian.
Amicus Curiae = Latin phrase meaning ‘friend of the court’: Lawyer who does not
represent a party in a case but who is called upon to address the court
to help clear up a difficult legal point or to explain something which is
in the public interest.
Ante = Latin adverb meaning ‘which has taken place earlier’ or ‘before’.
Status Quo Ante = the situation as it was before.
A posteriori = Latin phrase meaning ‘from what has been concluded afterwards’.
A posteriori argument = Argument based on observation.
Affidavit = written statement which is signed & sworn before a solicitor and which can
then be used as evidence in court hearings.
Animus = Intention.
Animus cancellandi = the intention to cancel.
Animus Furandi = Intention to steal.
Animus Manendi = Intention to stay (in a place)
Animus Revocandi = Intention to revoke (A will)
Annul = To cancel or to stop something having a legal effect.
Appeal = Asking a higher court to change a decision of a lower court.
Arson = Notifiable offence of setting fire to a building.
Audi Alteram Partem = Latin phrase meaning ‘Hear the other side’: A rule in natural
justice that everyone has the right to speak in his own defence
and to have the case against him explained to him.
Automatism = Defence to a criminal charge whereby the accused states he acted
involuntarily.
Autopsy = Examination of a dead person to see what was the cause of death.
Autrefois Acquit = French phrase meaning ‘previously acquitted’. Plea that an accused
person has already been acquitted of the crime with which he is
charged.
Autrefois Convict = French phrase meaning ‘previously convicted’. Plea that an accused
person has already been convicted of the crime with which he is now
charged .
Aver = To make a statement or an allegation in pleadings.
Attorn = To transfer.
Asylum = Hospital for people who are mentally ill.
Arm’s length = Not closely connected, to deal with someone at arm’s length = To deal
as if there were no connections between the parties.
Appurtenant = To or belonging to.
Antedate = To put an earlier date o a document.
Amnesty = Pardon, often for political crimes, given to several people at he same
time.
Alimony = Money which a court orders a husband to pay regularly to his separated or
divorced wife.
Adjoin = To touch another property.
Accretion = Enlargement of a piece of land by natural causes.
Accredited = (Agent) who is appointed by a company to act on its behalf.
Alienation = Transfer of property to someone else.
A fortiori = Latin phrase meaning ‘for a stronger reason
Affray = Public fight which frightens other people

Aggrieved = Who has been damaged/ harmed by a defendant’s actions
Autarchy = Situation where a state has total power over itself & rules itself without
outside interference
Autarky = Situation where a state is self-sufficient & can provide all its needs without
outside help.

Secured Transaction

any loan or credit in which property is pledged as security in the event payment is not made

Scienter

Latin for "having knowledge." In criminal law, it refers to knowledge by a defendant that his/her acts were illegal or his/her statements were lies and thus fraudulent.

Escrow

A writing, deed money, stock, or other property is given to a third person to hold until all conditions in a contract are fulfilled.

bequest

A gift by will of personal property.

Bailiff

A court officer whose duties are to keep order in the courtroom and to have custody of the jury.

Acquittal

A release, absolution, or discharge of an obligation or liability. In criminal law the finding of not guilty.

Accomplice

1. A partner in a crime.
2. A person who knowingly and voluntarily participates with another in a criminal activity.

Abstract of title

A chronological summary of all official records and recorded documents affecting the title to a parcel of real property.

Cost, Insurance and Freight - CIF

A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery, payment, when the risk of loss shifts from the seller to the buyer and who pays the costs of freight and insurance. The most commonly known trade terms are Incoterms, published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms. It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. Contact an international trade lawyer before using any trade term.

Free On Board - FOB

A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail. When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, as well as who pays the costs of freight and insurance. The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce. These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms. It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

Bait and Switch

A dishonest sales practice in which a business advertises a bargain price for an item in order to draw customers into the store and then tells the prospective buyer that the advertised item is of poor quality or no longer available and attempts to switch the customer to a more expensive product.