Asked by Samuel Flores on May 20, 2024
Verified
According to the Uniform Commercial Code,money orders are considered promissory notes.
Money Orders
A payment order for a pre-specified amount of money, similar to a check, that is widely used for safe transfers of funds.
Promissory Notes
Written promises to pay a specified sum of money to a named party, under specified conditions.
- Distinguish among the various forms of negotiable instruments, including drafts, notes, and checks.
Verified Answer
AS
Abigail S TshabalalaMay 21, 2024
Final Answer :
False
Explanation :
According to Uniform Commercial Code Section 3-104,money orders,particularly personal money orders,are usually in the same form as personal checks and are considered checks.A check is a special kind of draft.A draft is an instrument that is an order.
Learning Objectives
- Distinguish among the various forms of negotiable instruments, including drafts, notes, and checks.