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Electronic ChecksA group of banks have signed up with TeleCheck Services, a checkacceptance company, to use an electronic payment service. The service iscalled Electronic Check Acceptance. It converts paper checks presented atretail stores into electronic transactions. The system delivers funds directly intothe merchant’s account. It also eliminates having to chase down bad checks.Consumers sign a receipt for the electronic transaction. They then receive thecancelled check along with a copy of the receipt. Electronic check returnsbecome TeleCheck’s responsibility. (Source: TechFocus, December 1, 2000,Issue #3712, p. 26)Connect Visit the Web site of one or more of your area banks. See if they offersimilar electronic check acceptance services.Demand Paper An instrument is payable on demand when it sostates, or when it is payable “on sight” or “on presentation.” These instrumentsare called demand paper . The key feature of demand instrumentsis that the holder can require payment at any time by making thedemand upon the person obligated to pay.Definite-Time Paper Instruments meet the definite-time requirementwhen they are payable on or before a stated date. Instrumentspayable “one year after date” and “thirty days after sight” also meet therequirement. These instruments are called definite-time paper .In contrast, an instrument payable only upon an act or event, thetime of whose occurrence is uncertain, is not payable at a definite time.For instance, an instrument payable when a person marries or reachesa certain age would not be negotiable.Example 3. If Jasmine’s uncle had given him a note that said“payable 30 days after my death,” the note would not be negotiablebecause it is not payable at a definite time. No one can becertain when Jasmine’s uncle will die.Payable to Order or BearerNegotiable instruments, except for checks, must be payable to orderor to bearer. The words to the order of and to bearer are called thewords of negotiability . The maker or drawer may stipulate “Pay to theorder of Jane Doe,” “Pay to Jane Doe or order,” or “Pay to Jane Doe or514 Unit 5: Using Your Purchasing Power