A Check May Fall Under Uniform Commercial Code Article 3

question 24

True/False

A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.

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Definitions:

Compound Interest

This approach to interest calculation includes both the initial principal amount and the compounded interest from earlier stages of a deposit or borrowing.

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders, typically including principal and interest.

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Bond Discount

The contrast in value between what a bond is worth in terms of its face value and the lesser amount it is sold for in the market.