Brent gets a loan from San Fransisco Bank. Brent signs a standard form note prepared by the bank. The note obligates Brent to pay the bank the amount of the loan, plus interest. The bank is the:
A) Maker of the note.
B) Drawer of the note.
C) Drawee of the note.
D) Payee of the note.
Solution
Promissory note
A promissory note is a written document which is prepared at the time of getting loan. It contains terms and conditions of loan including amount of loan, interest rate, repayment schedule , manner of repayment of loan etc. The note is signed by the borrower and then it is kept by lender as a evidence of loan. Promissory note is a negotiable instrument.
A note has two original parties.
Therefore in the given question San Fransisco is the payee of the notes.
Option D
.
Brent gets a loan from San Fransisco Bank- Brent signs a standard form.docx
1. Brent gets a loan from San Fransisco Bank. Brent signs a standard form note prepared by the
bank. The note obligates Brent to pay the bank the amount of the loan, plus interest. The bank is
the:
A) Maker of the note.
B) Drawer of the note.
C) Drawee of the note.
D) Payee of the note.
Solution
Promissory note
A promissory note is a written document which is prepared at the time of getting loan. It contains
terms and conditions of loan including amount of loan, interest rate, repayment schedule ,
manner of repayment of loan etc. The note is signed by the borrower and then it is kept by lender
as a evidence of loan. Promissory note is a negotiable instrument.
A note has two original parties.
Therefore in the given question San Fransisco is the payee of the notes.
Option D
