Discussion Responses 3
How is a check different from other drafts?
What are the requirements for an instrument to be negotiable? In your answer, give an example of a negotiable instrument and a non-negotiable instrument from your experience.
How do the requirements of the Electronic Funds Transfer Act effect your understanding of negotiable instruments?
How is a check different from other drafts?
The person receiving the check can draw the money immediately from the bank. To reduce the amount of time it takes to process checks, the Electronic Funds Transfer ACT was adopted. Some EFT’s include debit cards and ATMs, direct deposits for paychecks, and internal and external fund transfers between accounts.
What are the requirements for an instrument to be negotiable? In your answer, give an example of a negotiable instrument and a non-negotiable instrument from your experience.
