Acc/543 Wk 4- Debt Financing

1207 Words May 11th, 2013 5 Pages
INTEROFFICE MEMORANDUM
TO: OWNER
FROM: ACCOUNTING TEAM
SUBJECT: DEBT FINANCING FOR NEW LOCATIONS
DATE: 4/28/2013

Debt Financing
Home security systems are a growing industry in the current century because of what is happening in the news today. The security system helps the people feel a sense of ease knowing they are safe and secure in their own homes. The company is looking to upgrade the technology infrastructures for the opening new locations in five different locations to sell home security systems. The company does not have the up front cash and needs to do debt financing to upgrade the growing business. There are negotiable instruments, components of secured transactions, rights, responsibilities, and dissecting the banks
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The check is money in an institution written on a paper instrument to be paid on demand to the payee. The promissory note is a two-party instrument and a person borrows money from another, in which there is a maker and payee (Negotiable Instruments & Banks, 2013).
The certificate of deposit is a promise to pay an agreed amount but is not and order to pay. The certificate of deposit occurs when there is a deposited amount between two-parties that the institution promises to pay back with a predetermined interest rate. The certificate of deposit will have a set time frame to be paid back to the other party (Negotiable Instruments & Banks, 2013).
When the negotiable instruments the holder-in-due course occurs when the payment is still obligated under the contract from the drawer and is the holder of the promisory note or check. The promisory is a promise of good faith and when there is a disqualification the holder is the one still entitled to the responsibility of payment. For example, if the terms are because of late payments, damaged goods, or overdrawn fees the institution is still able to collect the money along with any fees associated (Negotiable Instruments & Banks, 2013).
The other way the company can go is by have a secure loan with the bank by putting an item they own up for collatoral in equal value of the loan amount needed. For example, if the company owns one of their companies the

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