9:32
[kevin oleary]
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LSDefine
Simple English definitions for legal terms
acceptor
Read a random definition: hot check
A quick definition of acceptor:
Acceptor: An acceptor is someone who agrees to pay or do something that is written on a special piece of paper called a negotiable instrument. This means that they are responsible for making sure the payment or action is completed.
A more thorough explanation:
An acceptor is a person or entity that agrees to be responsible for the payment or performance of a negotiable instrument. This means that they are legally obligated to fulfill the terms of the instrument.
- When a business accepts a check as payment for goods or services, they become the acceptor of the check.
- A bank that accepts a promissory note from a borrower is also an acceptor.
These examples illustrate how an acceptor takes on the responsibility of fulfilling the terms of a negotiable instrument. In the case of a check, the business that accepts it becomes responsible for depositing it and ensuring that there are sufficient funds to cover the payment. Similarly, a bank that accepts a promissory note becomes responsible for collecting the payments from the borrower.