Sunday, December 16, 2012


01. The following are covered in negotiable instruments act: promissory note, bill of exchange, cheque, exchequer bill, circular note, dividend warrant, share warrant, bearer debenture, bank note, bank draft
02. The following are not negotiable instruments: money order, postal order, deposit receipt and share certificate
03. The following are semi negotiable instruments: bill of lading, dock warrant, carriers’ receipt, letters of credit, railway receipt and wharefinger’s certificate
04. The bill of exchange consists of three parties namely; drawer, drawee and payee
05. There are four caterogiries of cheques namely; open cheque, crossed cheque, bearer cheque and order cheque.
06. Open cheque is un crossed cheque or is called as blank cheque
07. Two parallel transverse lines on the face of the cheque denotes crossing of the cheque
08. When the name of any bank is written between the two transverse lines, it is called as special crossing
09. Normally all cheques are bearer cheques. It means that it can be payable to the payee or to the bearer of the cheque
10. By striking the words “bearer” in the cheque, the cheque can be made payable to order
11. Cheques can also be categorized into ante dated cheque, stale cheque, mutilated cheque and post dated cheque
12. When the cheque is out of date, it is said to be a stale one
13. When the cheque contains unwanted words or figures in the chque and some portion of the cheque is found missing, it is said to be mutilated
14. Post dated cheques are cheques where the date of the cheque is found to be the future date
15. The following are the varieties of hundies namely; darshani hundi, mitti hundi or muddati hundi, nam-jog hundi, furman jog hundi, dhani jog hundi, shah jog hundi, jokhim hundi, jawabi hundi, khaka hundi and khoti hundi
16. Dharshani hundi is payable immediately on demand
17. Mitti hundi is payable after the expiry of some period
18. Nam jog hundi is payable only to person named in the hundi
19. Furman jog hundi is payable to person the named in the hundi or any other person
20. Dhani jog hundi is payable to holder or bearer
21. Shah jog hundi is payable to shahs in the area
22. Johim hundi consists of conditions
23. Jawabi hundi invites acknowledgment from the person on acceptance
24. Khaka hundi is one which has been paid already
25. Khoti hundi is a defective hundi
26. In the case of deposit, the customer is creditor and the banker is debtor
27. In the case of overdraft account, the banker is creditor and the customer is debtor
28. A person who makes deposit with the bank is called as the depositor
29. A person who avails loan from the bank is called as the borrower
30. When any loan is backed by any immovable security like land, house, factory, it is said to be under mortgage
31. The person who mortgages the security is called as the mortgagor and the banker is called as the mortgagee
32. When any loan is backed by any movable security like auto, truck, computer etc. it is said to be under hypothecation
33. The person who hypothecates the security is called as the hypothecator and the banker is called as the hypothecatee
34. When a person avails any loan against the security of LIC policy, it is said to be under assignment
35. When a person offers a fixed deposit as security for a loan, it is treated as pledge
36. The customer who pledges the deposit is called as pledgor
37. The banker on whom the deposit is pledged is called as the pledge
38. In the case of locker, the customer is lessee and the banker is called as lessor
39. In the case of safe custody receipt, the customer is called as bailor and the banker is called as the bailee
40. The different types of customers are – individuals and others
41. The individuals can be single individuals, joint individuals, minors, married woman, pardanashin woman, illiterate person and lunatic
42. In the case of hindu undivided family, the seniormost male member is called as the karta
43. The business accounts can be opened by partnership firm, trustees, societies, charitable institutions and clubs
44. The person named in the will to receive the properties in the will is called as executor
45. In the absence of will, the person who is appointed by the court to receive the money is called as the administrator
46. Proprietorship firm is an account managed by a single individual called as proprietor
47. Companies can be divided into private limited company and public limited company
48. When the bank in India opens an account with a bank in a foreign country it is called as nostro account
49. When the bank in a foreign country opens an account with a bank in India, it is called as vostro account
50. When a bank in one foreign country opens an account with another bank in another country it is called as Loro account

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