会计专业英语：第七课 Promissory Note and Check

PromissoryNoteandCheckAPromissoryNoteApromissorynote,referredtoasanotepayableinaccounting,orcommonlyasjusta"note",isanegotiableinstrument,whereinoneparty(themakerorissuer)makesanunconditionalpromiseinwritingtopayasumofmoneytotheother(thepayee),eitheratafixedordeterminablefuturetimeorondemandofthepayee,underspecificterms.APromissoryNoteTheydifferfromIOUsinthattheycontainaspecificpromisetopay,ratherthansimplyacknowledgingthatadebtexists.Incommonspeech,otherterms,suchas"loan,""loanagreement,"and"loancontract"maybeusedinterchangeablywith"promissorynote"butthesetermsdonothavethesamelegalmeaning.Whereasapromissorynoteisevidenceofaloan,itisnottheloancontract,whichwouldcontainallthetermsandconditionsoftheloanagreement.APromissoryNoteThetermsofanoteusuallyincludetheprincipalamount,theinterestrateifany,theparties,thedate,thetermsofrepayment(whichcouldincludeinterest)andthematuritydate.Sometimes,provisionsareincludedconcerningthepayee'srightsintheeventofadefault,whichmayincludeforeclosureofthemaker'sassets.APromissoryNoteDemandpromissorynotesarenotesthatdonotcarryaspecificmaturitydate,butaredueondemandofthelender.Usuallythelenderwillonlygivetheborrowerafewdaysnoticebeforethepaymentisdue.Forloansbetweenindividuals,writingandsigningapromissorynoteareofteninstrumentalfortaxandrecordkeeping.APromissoryNoteIntheUnitedStates,apromissorynotethatmeetscertainconditionsisanegotiableinstrumentregulatedbyarticle3oftheUniformCommercialCode.Negotiablepromissorynotesareusedextensivelyincombinationwithmortgagesinthefinancingofrealestatetransactions.Promissorynotes,orcommercialpapers,arealsoissuedtoprovidecapitaltobusinesses.However,PromissoryNotesactasasourceofFinancetothecompany'screditors.CheckAchequeorcheck(AmericanEnglish)isapieceofpaper(usually)thatordersapaymentofmoney.Thepersonwritingthecheque,thedrawer,usuallyhasachequingaccountwheretheirmoneyisdeposited.Thedrawerwritesthevariousdetailsincludingthemoneyamount,date,andapayeeonthecheque,andsignsit,orderingtheirbank,knowasthedrawee,topaythispersonorcompanytheamountofmoneystated.CheckChequesareatypeofbillofexchangeandweredevelopedasawaytomakepaymentswithouttheneedtocarryaroundlargeamountsofgoldandsilver.Papermoneyalsoevolvedfrombillsofexchange,andaresimilartochequesinthattheyareawrittenordertopaythegivenamounttowhoeverhaditintheirpossession(the"bearer").CheckTechnically,achequeisanegotiableinstrumentinstructingafinancialinstitutiontopayaspecificamountofaspecificcurrencyfromaspecifieddemandaccountheldinthedrawer/depositor'snamewiththatinstitution.Boththedrawerandpayeemaybenaturalpersonsorlegalentities.Specifically,chequesare,asreflectedintheformula"Paytotheorderof..."–theyarenotingeneralpayablesimplytothebearer(asbearerinstrumentsare),butratherthepayeemustendorsethecheck,possiblyspecifyingbyordertowhomitshouldbepaid.CheckThefourmainitemsonachequeareDrawer,thepersonorentitywhomakesthecheque

Payee,therecipientofthemoneyDrawee,thebankorotherfinancialinstitutionwherethechequecanbepresentedforpaymentAmount,thecurrencyamountCheckPartiestoregularchequesgenerallyincludeadrawer,thedepositorwritingacheque;adrawee,thefinancialinstitutionwherethechequecanbepresentedforpayment;andapayee,theentitytowhomthedrawerissuesthecheque.Thedrawerdraftsordrawsacheque,whichisalsocalledcuttingacheck,especiallyintheUnitedStates.CheckApayeethatacceptsachequewilltypicallydeposititinanaccountatthepayee'sbank,andhavethebankprocessthecheque.Insomecases,thepayeewilltakethechequetoabranchofthedraweebank,andcashthechequethere.CheckIfachequeisrefusedatthedraweebank(orthedraweebankreturnsthechequetothebankthatitwasdepositedat)becausethereareinsufficientfundsforthechequetoclear,itissaidthatthechequehasbounced.Onceachequeisapprovedandallappropriateaccountsinvolvedhavebeencredited,thechequeisst