BUSI 2601 Chapter Notes - Chapter 8: Canadian Business, Promissory Note, Negotiable Instrument
Document Summary
The importance of banking, financing, and debtor-creditor law for business people. Knowledge of how financial institutions work can strengthen your position when dealing with them. A sound mixture of debt and equity financing may be your business"s recipe for success. If your business falls on hard times, sensible treatment of your creditors may keep you out of bankruptcy. Provincially chartered trust companies and credit unions are regulated by provinces. Banks use efts (electronic fund transfers), bills of exchange, cheques and promissory notes when dealing with money. When borrowing money, the borrower becomes a debtor and lender becomes a creditor to the business. If the debtor has insolvency and unable to pay the creditor, the creditor may petition for bankruptcy under the bankruptcy & insolvency act. Only the payee can cash negotiable instruments. Negotiable instruments are regulated under the federal bills of exchange act.
