Gale Encyclopedia of American Law Volume 3 P4 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 18 COMMERCIAL PAPER ILLUSTRATION BY GGS CREATIVE RESOURCES. REPRODUCED BY PERMISSION OF GALE A PART OF CENGAGE LEARNING. Commercial Paper Outstanding 2004 to 2007 2 Non financial companies2 2 Financial companiesb 1 200 - 1 000 - 800 - 600 - 400 - 200 0 2004 aPublic utilities and firms engaged primarily in activities involving communications construction manufacturing mining wholesale and retail trade transportation and services. Institutions engaged primarily in commercial savings and mortgage banking sales personal and mortgage financing factoring finance leasing and other business lending insurance underwriting and other investment activities. source The Federal Reserve Board Statistical Supplement to the Federal Reserve Bulletin December 2008. also serves as a certificate of title to the goods which is ordinarily in the seller s name. Upon shipment the seller draws a draft against the buyer-drawee who is required to pay the draft. The seller s bank is named as the payee. The seller endorses the bill of lading to the payee and attaches the bill to the draft. The seller can either negotiate these instruments to the payee at a discount or use them as security for a loan. Subsequently the papers are endorsed by the seller s bank and delivered to a correspondent bank in the community where the buyer is located. The correspondent bank seeks payment of the draft from the buyer and when payment is made the bank transfers ownership of the goods from seller to buyer by endorsing the bill of lading to the buyer. The buyer can then obtain the goods from the carrier upon presentation of the bill of lading which demonstrates his or her title to the shipped goods. A check is a specific kind of draft which is drawn on a bank and payable on demand to a particular individual or to the bearer in which case it can be written payable to cash. An individual who opens a checking account is engaged in a contractual relationship with a bank. The individual agrees to deposit
