Taking for Value

[dashboy]

INTO THE NITTY GRITTY
I dont see this discussion as an argument. I also do not recall saying anything that says deems any activity good or ill herein. IMHO, this kind of thread is is primarily for people who are just buying into catch phrases without actually giving them deep thought so that they know the hard-core, long-term principles rather than the theories. Its an opportunity to discuss related matters finely--should anyone choose to do so.Good post fulltitle,

I too do not see this as an argument, but I do think it important to understand that what we as the makers of theses intrument intend them to be is NOT necessarily what the bank intends it to be.

Everyday people go into banks believing that the promissory note they are signing is just that, a promise to pay back what they believe they have borrowed (MONEY/CAPITAL) from another, and thus are obligated to pay it back. That senario of course is not what the bank's intent truly is for that instrument. Their intent is to take that instrument as an asset from you without purchasing it from you while gaining ownership, and thus holder in due course status. There is a difference between a "holder" and a "Holder in Due Course"

For the most part instruments seem to follow a very distinct course through the system based upon what the intent of each instrument is.

The UCC defines a negotiable instrument as an unconditioned writing that promises or orders the payment of a fixed amount of money. Drafts and notes are the two categories of instruments. A draft is an Instrument that orders a payment to be made. What the bank is doing is making your promise to pay into an order to pay (draft) In essnces it becomes a check.

A note is an instrument that promises that a payment will be made. Certificates of deposit (CD's) are notes. Drafts and notes are commonly used in business transactions to finance the movement of goods and to secure and distribute loans. To be considered negotiable an Instrument must meet the requirements stated in Article 3. Negotiable instruments do not include money, payment ordersgoverned by article 4A (fund transfers) or to Securities governed by Article 8 (investment securities).



dashboy~

[fulltitle]

without Prejudice