Credits and collections: . the transactions involve bank-ing credits or other loaning of money or credit. The usual form of plain note consists of address anddate and a promise to pay to the creditor, or his order,at a specified time and place the amount covered by thetransaction with interest, signed by the debtor. Figure2 shows the familiar blank form. This simple form may be, and frequently is, elaboratedby special with respect to the payment ofattorneys fees in case suit is necessary, and otheragreements in most frequent use in notes are: retaineragreements customary or exacted
Credits and collections: . the transactions involve bank-ing credits or other loaning of money or credit. The usual form of plain note consists of address anddate and a promise to pay to the creditor, or his order,at a specified time and place the amount covered by thetransaction with interest, signed by the debtor. Figure2 shows the familiar blank form. This simple form may be, and frequently is, elaboratedby special with respect to the payment ofattorneys fees in case suit is necessary, and otheragreements in most frequent use in notes are: retaineragreements customary or exacted by the creditor. Suchof title to articles for which the note is given; provisionconstituting the holder the agent of the maker with powerto confess judgment in case of default; provision in notesissued in series under which default in payment of anyone in the series matures the succeeding notes of theseries. Such provisions do not affect the negotiablecharacter of a note. It must be borne in mind, however, Form of Debt 133. 134 Collections that some of these are illegal in some states and that theyare restricted in others; hence, such forms should not beadopted except under legal advice. One such form isshown in Figure 3. Secuked Notes Special provision for assuring payment is more preva-lent in connection with notes than with open provision, called security, occurs in numerousforms of varying significance and efiQcacy, and calls forcollection treatment according to the custom and the lawappertaining to each case. Personal Security The most simple form of security is that known as*personal, and is evidenced by the signature of one ormore persons (other than the maker), who therebybecome sureties or guarantors for the debt. Theadditional signature or signatures may be written on theface of a note under that of the maker, in which casethey are designated as security or, in some localitiesor under certain conditions, as joint makers. Thenote is then known as a joint
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Keywords: ., bookcentury1900, bookdecade1920, booksubjectcredit, bookyear1920
