Non Negotialbe Intrument

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SENTHIL.E

GKMCCMT

S3 NO:-32


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A term relating to a good or security whose ownership is not easilytransferable from one party to another.

Securities that are considered non-negotiable cannot be transferred fromone party to the next and thus are typically illiquid.

An example of a non-negotiable instrument would be a governmentsavings bond. These can only be redeemed by the owner of the bond andare not allowed to be sold to other parties.

Also known as registered securities, non-marketable or non-transferable

securities.


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Document of title or a financial instrument (such as a crossed cheque)that may not be transferred from the holder or named party to another.


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I. Money orders.

II. Deposit receipts.

III. Share certificates

IV. Dock warrants.

V. Postal orders


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A money order is an order issued by the Post Office for the payment of a

sum of money to the person whose name the money order is sent throughthe agency of the Post Office.

A Payee is the person named in money order as the person to whomthe money is to be paid .

A money order is a payment order for a pre-specified amount of money.Because it is required that the funds be prepaid for the amount shown onit, it is a more trusted method of payment than a cheque.


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The advantage of sending money to someone through money order

is that the money is delivered at the house or his place of stay.

In India, a money order is a service provided by the Indian PostalService.

A payer who wants to send money to a payee pays the amount and asmall commission at a post office and receives a receipt for the same.


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The amount is then delivered as cash to the payee after a few daysby a postal employee, at the address specified by the payer.

A receipt from the payee is collected and delivered back to thepayer at his address.

This is more reliable and safer than sending cash in the mail.

It is commonly used for transferring funds to a payee who is in a

remote, rural area, where banks may not be conveniently accessibleor where many people may not use a bank account at all.

Money orders are the most economical way of sending money inIndia for small amounts.


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When you place money with a financial institution (FI) in a fixed deposit,the FI will issue you with a document bearing your name, account no., theamount of the principal you placed, the interest rate, the value date,the maturity date, the period for which this rate is fixed (can be 1 week, 1month, 3 months, 1 yr, etc) and the amount of interest you will get on the

maturity date, your instructions on the maturity date. This document isknown as a Fixed deposit receipt.


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Meaning

A share certificate is a written document signed on behalf of a corporation,and serves as legal proof of ownership of the number of shares indicated.

Definition

Legal document issued as proof of ownership in a firm. In themodern stock markets, the 'paper' share is now being replaced by the'electronic' share


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Share certificates provide a proof of ownership.

Share certificates are the proofs of ownership individual investors holdin a company.

Depending on the size of the company, share certificates may denoteeither individual shares or bundles thereof.

For example, the British Leyland Motor Corporation used to give outshare certificates that denoted individual shares, or tens, hundreds,thousands, tens of thousands, or hundreds of thousands of shares.


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A document by which the owner of a marine or river dock certifies that the

holder is entitled to goods imported and warehoused in the docks.

Definition

A document used by a shipping port authority that certifies title of goods to

a consignee or consignor while a shipment is stored ina warehouse or storage lot.


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A dock-warrant is a certificate given to the owner of goods warehousedat a dock, or orders for goods kept in the warehouses connected with

a dock.

They are granted by the proper officer at the dock to the importer infavour of any one that he may name.

These warrants are held to be negotiable, so that they may pass fromone holder to another, the property of them being always vested inthe holder.


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Meaning

A written order for the payment of a sum to a named individual;obtainable and payable at a post office.

Postal Orders are not legal tender, but a type of promissory note, similar

to a cheque.

A Postal Order is a form of money order which can or could be bought atthe Post Office but you could buy the Postal Order to send through thepost instead of a cheque or cash.


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Documents

Non Negotialbe Intrument