The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1906-05-19
WOMEN IN BUSINESS
POINTS THEY SHOULD KNOW
ABOUT PRoMIssoRY NOTES.
answers to Questions About Joint
Notes, Collecting Payments, Dis
counting Notes, Endorsing Notes,
borrowing at the Bank, Etc.
BY KATHERINE LOUISE SMITH.

Az ~ AAStS Va
sasement by one person to pay another
thereln named, absolutely or uncondi.
llonaily, q certain sum of money at q
ume specified. This is the legal defini.
ion OF a promissory note. In reality
'he simplest form of written acknowl-
edgement of a loan of money due, is
y promissory note and as it is a spa-
cies of paper one should always under
stand and hesitate before signing, it is
well for a woman to comprehend the
exact meaning and the obligations in
vowed. 1t is an easy matter to sign
ones name to such a paper, but the
consequences such an act involves may
not be so readily fulfilled.
Of course, the principal purpose Sc
cured by a promissory note is On the
part OF the borrower, the obtaining of
money and postponement of payment
until a later time, which is agreed
upon. The lender, on his side, OBJ
tains written evidence of the debt,
which is important not alone to bind
the debtor. but because memories are
t~reacherOuS and death sometimes in
t%ervenes. He also obtains written ev-
idence of an obligation which must be
paid or the note will be dishonored.
Tho usual form for q promissory note
is as follows:
Chicago, Ill, Dec. 1, 1906.
"On demand Tor - days after date,
or months after date, or on the -
day of - 49,, l promise to pay to
the order of Jane Doe, -- dollars,
with interest, for value received.
-.
"RACHEL ROE"
Many rules applicable for checks
hold good in notes. For instance, the
date and amount must be plainly writ
ten. In writing the amount of the note
one should commence at the extreme
left of the blank and draw a line be-
tween the amount written n the
word dollars" Notes should also be
made payable "to order" Other re-
quirements are that the rate of inter-
est should be clearly expressed and
that the post Office address of each
party should be given after the name.
Some place should he designated fer
payment. Usually this Is a business
house or bank. The maker" OF q
prOmiSSOry note is the person who
gives it and "the payee" is the enc
indicated as the recipient of the prom
ised amount. In som states fixed
phrases are required in the body Of the
note, such as without discount" but
as a general rule that fact is under
stood.
A bank is usually the best place to
designate for the payment of a Iote
and blanks are provided for this pur-
pose. The borrower may leave funds
there and thus stop interest or protest,
in case she is out of town on the date
of payment. And the owner can leave
It for collection before it becomes due
and the bank will notify the maker.
In taking a note from a party who
cannot sign her name, the person
should be requested to make her mark.
For example.
"Her
"ELIZABETh (X) MORRISON.
mark.
witness to mark:
JANE WENTWORTH"
In other words, Elizabeth Morrison
has some one sign her name and she
makes the mark. Jane Wentworth, |
who watches this proceeding, signs her
name as witness. In ONE states two
witnesses are required by law.
SyVhof &c a ioint nnfa9 horo hoan
asked to sign one and do not like to
do so without understanding it,
Clara r.
You do right not to sign any paper
without understanding it's contents. A
joint note is one signed by two or
more persons. Each thus becomes re-
sponsible for the full amount in the
body of the note.
81 hold a mans note for 500. How
shall l credit his interest and pay
ments ?"-MrS. L. M. Baker.
Write each time on the back. under
the date, the amount paid you and
state if it is interest or a payment on
the principal. This is called an in
dorsement of payment and should
never be neglected. For instance,
you might know that he had paid
amount, but if you died,
your executor, seeing no indorse- {
ment on the back, might demand {
the amount again. Of course you un- s
ierstand that any mount paid above
he interest is deducted from the face s
value when the note falls due or is ]
aiken up. |
"How can I collect payment on q ,
tote given by a party who resides in !
mother town?"-A Working Woman. G
Send the note to a bank in the place
where the maker resides and ask them l
q collect the money and forward it to =.
you. The proper Endorsement will be .
N the back before it is returned to ,
,ou. with the amount received, less .
small percentage for the collection. :
W. noto shDuld he Sent several DAVIS