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 ?
HAMILTON: They want security, negotiability, liquidity, punctuality, and banality.
He covers the basics of Islamic Law and finance principles and concepts, the role of Islamic scholars in the negotiability of debt, criticizing the resolutions of the Islamic Fiqh Academies regarding the tradability of debts, and many other related subjects.
Negotiability Example 2: Low-Pressure Pipeline Inspection
Negotiability of promissory notes is governed by Florida's Uniform Commercial Code, F.
52) Until recently, there were no reported decisions regarding the negotiability of the Fannie/Freddie uniform note or the HUD model note, (53) but the modern mortgage finance market is built upon an assumption of negotiability.
This negotiability makes us forever change things, alter things, give up space where it shouldn't be given up," Gupta said.
The negotiability of senders and receivers allows teleopoiesis, and the question of negotiability must be assumed as possible before proof.
The reason is partly tradition, and perhaps partly that the drafter wished to make the note negotiable in order to take advantage of the Holder in Due Course doctrine (which permits the holder of the note to take free of many defenses that the maker might raise), and could not accomplish this negotiability if the terms of the mortgage were incorporated into the note.
For a market in which programmed trading leads to a smaller increase in volume of trading, relative to that in the number of trades, liquidity would have expanded, and still the negotiability index would not show it.
Determination of the owner is essential for the negotiability of the instrument.
Along the same lines, the contemporary theoretical pragmatic principles of Negotiability (the speaker leaves room for different interpretations by the listener), Motivation (the speaker intentionally chooses one particular meaning and leaves no room for the listener to interpret otherwise), and Conventionality (expressions whose unambiguous meaning is rooted in usage) are discussed.
2 (ANI): Unveiling its 2012 Corporate Travel Forecast and Hotel Negotiability Index, leading travel management company Egencia has predicted that airline average ticket prices (ATPs) and hotel average daily rates (ADRs) for top corporate travel destinations will be slightly up overall in North America and Europe.