commercial paper

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commercial paper,

type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good that their notes are immediately accepted for trading. The notes are sold at a discount and mature in from three to six months. Commercial paper is an important source of cash for the issuing firm; it supplements bank loans and is usually payable at a lower rate of interest than the prime discount rate. Strictly speaking, it includes only those instruments that are used in commerce in place of money, as distinguished from paper used in investment, personal, estate, speculative, and public transactions. In addition to promissory notes, commercial paper may include drafts, bills of exchange and checks, acceptances, bills of lading, warehouse receipts, orders for delivery of goods, and express orders. See. N. D. Baxter, The Commercial Paper Market (1969); Steve H. Nickles, Commercial Paper (1988).
References in periodicals archive ?
The company said discharge from liability was granted to Jouni Torasvirta, chairman of the board; Patrik Hertsberg, member of the board; Mikko Larvala, member of the board; Tapani Rautiainen, member of the board; Veli Matti Salmenkyla, member of the board; Timo Valjakka, member of the board and Pekka Peiponen, executive director
BioGaia AB (STO:BIOGB) reported on Wednesday that the Annual General Meeting of 10 May 2016 voted to approve the resolutions of adoption of the annual report, discharge from liability for the board members and the managing director and a dividend of SEK5.
The AGM adopted PE[micro]yry PLC's annual accounts and granted the members of the Board of Directors and the President and CEO of the company discharge from liability for the financial period 1 January to 31 December 2013.
25 per share was approved and the AGM approved discharge from liability for the members of the board of directors and the managing director.
The company's board of directors and the CEO's were granted discharge from liability for the 2015 fiscal year.
Approval of profit and loss accounts and balance sheets, and discharge from liability of the board members and the managing director The profit and loss account and balance sheet as well as the consolidated profit and loss account and consolidated balance sheet were approved, and the managing director and the board members were discharged from liability with respect to their respective management of the company for financial year 2009.
It granted the directors and president discharge from liability in respect of the financial year 2015 and resolved that no dividends be paid for the financial year 2015.