Chapter 19 Whiteacre, Minnesota $1, January 16 20___ Ninety days after above date PAY TO THE ORDER OF THE FIRST NATIONAL BANK OF WHITEACRE, MINNESOTA One thousand and no/100____________________________________DOLLARS VALUE RECEIVED AND CHARGE THE SAME TO ACCOUNT OF To_________________________ ___________________________ By_____________________________ Eastman Supply Company Bank of Ourtown Ourtown, MichiganStephen L. Eastman Stephen L. Eastman, Pres. Payee Drawee Drawer A Typical Time Draft 01

Chapter 19 Mytown, California To____________________________________________________________________ By Agent or Officer___________________________ By_____________________________ Comfort Creations, Inc. Jackson River Fabrics Joe Jones, Pres. Payee Drawee-Acceptor Drawer A Typical Trade Acceptance On_________________PAY TO THE ORDER OF ____________________________ _____________________________________________DOLLARS_______________ _ _________ 20___ Comfort Creations, Inc. June 15, 2001Jackson River Fabrics Fifty thousand and no/ ($ , ) The obligations of the acceptor hereof arise out of the purchase of goods from the drawer. The drawee may accept this bill payable at any bank or trust company in the United States which drawee may designate. TRADE ACCEPTANCE Accepted at _________________________ on _________________20_________ March March 1501Blackacre, N.Y. Payable at __________________________ __________________________ Bank of Blackacre Blackacre, New York Buyer’s Signature ___________________________ Tom Smith, T.V. Pres. Drawee

Chapter 19 A Typical Promissory Note SECURITIES  INSURANCE SAVINGS OTHER  SEC. AGREEMENT 1. INV. & ACCTS. 2. CONSUMER GOODS 3. EQUIP NO.,__________ OFFICER______ BY___________ ACCURAL____  NEW REN’L SECURED__ UNSECURED Clark $___________Whiteacre, Minnesota __________ 20___ Due _________ ___________________________________________________after date. For value received, the undersigned jointly and severally promise to pay to the order of THE FIRST NATIONAL BANK OF WHITEACRE at its office in Whiteacre, Minnesota, $___________________ dollars with interest thereon from date hereof at the rate of _______ percent per annum (computed on the basis of actual days and a year of 360 days) indicated in No. ____ below.  INTEREST IS PAYABLE AT MATURITY  INTEREST IS PAID TO MATURITY  INTEREST IS PAYABLE ______ BEGINNING ON _____20____ SIGNATURE ______________________SIGNATURE ___________________________ 3, April /29/2001 Three thousand Margaret P. Roberts Laurence E. Roberts Co-makers Payee On or before sixty days

Chapter 19 A Typical Small CD THE FIRST NATIONAL BANK OF WHITEACRE NEGOTIABLE CERTIFICATE OF DEPOSIT WHITEACRE, MINN. ___________________20____ THIS CERTIFIES to the deposit in this Bank the sum of _______________ ____________________________________________________________DOLLARS which is payable to bearer on the _________ day of ____________, 20____ against presentation and surrender of this certificate, and bears interest at the rate of _______% per annum, to be computed (on the basis of 360 days and actual days elapsed) to, and payable at, maturity. No payment may be made prior to, and no interest runs after, that date. Payable at maturity in federal funds, and if desired, at Manufacturers Hanover Trust Company, New York. THE FIRST NATIONAL BANK OF WHITEACRE By _______________________________________ SIGNATURE Maker John Doe 15th February Five thousand and no/ August 01 Payee (Bearer) $5,

Chapter 19 Converting an Order Instrument to a Bearer Instrument and Vice Versa Jessie Arnold Pay to Mark Hyatt Jonas Tolling Instrument to a Bearer Instrument A check payable to the order of Jessie Arnold is an order instrument. Arnold indorses the check in blank (by simply signing her name), thus converting the instrument to a bearer instrument, and delivers the check to Jonas Tolling. Indorsement Converting a Bearer Instrument to an Order Instrument Jonas Tolling adds a special indorsement and negotiates the check to Mark Hyatt. The special indorsement, because it makes the instrument payable to a specific indorsee (Mark Hyatt), converts the bearer instrument back into an order instrument. To negotiate the instrument further, Mark Hyatt must indorse and deliver the instrument.

Chapter 19 A Blank Indorsement Alan Luberda

Chapter 19 A Special Indorsement Arthur Rabe Pay to Anthony Alfonso

Chapter 19 A Qualified Indorsement Bridgett Cage Pay to Elvie Ling, without recourse.

Chapter 19 For Deposit/For Collection Indorsements For Deposit Stephanie Mallak For Collection only Stephanie Mallak

Chapter 19 Trust Indorsements Pay to Ada Johnson in trust for Sarah Emerson Robert Emerson Pay to Ada Johson as Agent for Sarah Emerson Robert Emerson

Chapter 19 Negotiability and Transferability

Chapter 19 Negotiability and Transferability (Continued)

Chapter 19 Negotiability and Transferability (Continued)