The person who promises is called the maker, and the person to whom he promises is called the payee.
The FACE of a note is the sum of money promised.
A negotiable note is one which is made payable to the bearer, or to the order of the payee. A negotiable note can be sold or transferred.
A note is non-negotiable when it is payable only to the person or persons named in the note.
An indorser of a note is a person who writes his name on the back of it. The person who indorses, by so doing guarantees its payment. An indorsement in blank is simply the signature of the indorser written across the back of the note or draft. When indorsed in this way the note or draft is made payable without further indorsement to any person holding.
A note or draft is indorsed in full when the indorser states, over his signature, the person to whose order the note or draft is to be paid. If an indorser does not wish to guarantee the payment of a note or draft, he writes “Without recourse” over his name when indorsing it.
A protest of a negotiable note or draft is a formal statement by a notary public that said note or draft was presented for payment or acceptance and refused.
A note, when due, must be presented at the place at which it is made payable. The day of maturity is the day on which a note becomes due.
The days of grace are the three days beyond the specified time for payment. Days of grace are now practically abolished throughout the United States.
Kinds of Notes.—There are three principal kinds of notes—Time Notes, Joint Notes, and Joint and Several Notes.