A guarantee of payment by a third party, often a bank, on a bill of exchange or promissory note, ensuring the instrument is honored.
Debt is an amount of money borrowed by one party from another, which is often incurred by businesses and individuals to finance specific activities or projects.
A debt instrument is a document used to raise non-equity finance, typically consisting of a promissory note, bill of exchange, or any other legally binding bond.
Forfaiting is a form of debt discounting for exporters in which a forfaiter accepts at a discount, and without recourse, a promissory note, bill of exchange, letter of credit, etc., received from a foreign buyer by an exporter. This enables exporters to receive payment without risk at the cost of a discount.
A loan is a financial transaction where a lender provides property, typically money, to a borrower, who promises to return the property with interest after a specified period.
The term 'maker' has distinct meanings depending on the context. Generally, it refers to a producer of a product, such as a car manufacturer. In commercial law, it specifically designates the person who executes a note or endorses it before its delivery to the payee, thereby assuming the obligation to make a payment.
A Note Receivable is a financial instrument representing a written promise from a debtor to pay a specified sum of money to the creditor at a future date or on demand.
A note or note payable is a written document that acknowledges a debt and contains a promise to pay a specified sum to a certain party by a certain date. Maturity terms can be definite or become definite over time.
A promissory note is a negotiable instrument that contains a written promise to pay a specified sum of money to a named person, their order, or the bearer at a predetermined future date. It must be unconditional, signed by the maker, and delivered to the payee or bearer.
Tenor refers to the duration of time that must elapse before a financial instrument such as a bill of exchange or promissory note becomes due for payment.
A Vendor's Lien is a collateral granted to the seller of a property as security for a promissory note taken by the seller as part of the selling price.
