FINANCE (MONEY)

• •Maker – the drawer or writer of the check•Drawee – the bank which is order to pay the payeePayee – the one to whom the check is to be paid
•  Personal Check – issued by persons to be drawn against their own current/checking account in the bank
• Business Check

  – a check issued by companies/businesses. It is drawn on the issuer’s bank checking or current account. It is used for business transactions
• Cashier’s Check

  – it is issued by the bank against its own account ensuring availability of funds. It is purchased with a fee from a bank that issues the check. It can be signed by the bank cashier or any other bank official.
• Certified Check

  – it is issued by the bank certifying that the account of the person issuing it has available funds (just like any ordinary personal check). The bank certifies the availability of fund by earmarking the corresponding amount on the check which will only be used to pay the check itself.
• Traveler’s Check

  • it is a fixed amount check which is preprinted, allowing the signatory of the financial institution who is selling the traveler’s check to make an unconditional payment to whoever has the traveler’s check in his possession.
• Parties to a traveler’s check

  •Issuer or obligor – the company issuing or producing the traveler’s check•Agent – the financial institution who sells the traveler’s check.•Purchaser – the person buying the traveler’s check and will use it as a form of money•Payee – the seller of goods or services to be paid with the traveler’s check.
• Bank Draft

  •is issued by banks against their own account•Ensure availability of funds without any need to check on the character of the person issuing the check•Prevalent in the UK
• Types of Bank Draft

  •Demand Draft (sight draft) – payable on demand or upon sight•Time Draft – payable sometime in the future like post-dated check•Local Draft – issued by a bank in a single country•International Draft – used globally or internationally•Automatic Bank Draft (ABD)- takes out money from the payer’s account electronically at a regular intervals
• Money Order

  – it refers to the instrument issued generally by the post office of a country ordering a sum of money to be paid to the payee indicated on the instrument itself. This under R.A. 7354, an Act Creating the Philippine Postal Corporation under Art. II, Sec. 6.
• Warehouse Receipt (WR) •It covers all warehouses, whether public or private, bonded or not• A document of title to goods • A proof of the possession or control of the goods•Authorizing or purporting to authorize the possessor of the documents to transfer or receive, either by endorsement or by delivery goods represented by such document