Presenting Negotiable Instrument for Payment

The video tutorial explains the concept of presentment in negotiable instruments, detailing how they are presented to the payor, either the maker or drawee, depending on whether it's a note or draft. It covers the requirements for a valid presentment and highlights the negotiability of such instruments, emphasizing their ability to be freely exchanged without losing value. Finally, it discusses when these instruments become payable, either on demand or at a future date.

What is the process called when an instrument is presented to the payor?

• Endorsement

• Presentment

• Negotiation

• Acceptance

Who is the payor in the case of a draft?

• Endorser

• Drawee

• Holder

• Maker

What does 'presentment dually made' imply?

• The instrument is dishonored

• All requirements for presentment are met

• The instrument is endorsed

• The instrument is void

What is a key characteristic of a negotiable instrument?

• It can only be exchanged once

• It must be presented within a day

• It loses value after exchange

• It is freely exchangeable and tradable

When does a negotiable instrument become payable?

• Only after dishonor

• Only after endorsement

• At a certain point in the future or on demand

• Only on demand