2. Cashier's Checks

A check that a bank draws on itself and which is issued by an autho­rized bank officer is a cashier's check. Such checks are used by banks to pay their own obligations. They also may be purchased from a bank by persons who wish to send remittances (payments) but who either have no personal checking account or do not wish to use their personal checks.

Little Rock, Arkansas Pay to the order of The sum of	1203/456 Middle State Bank December 15 20 02
	Barrows Paper Company $ 375.50
	$375 and 50 cts dollars
	CASHIER'S CHECK Martha C. Todd
	Assistant manager

3. Bank Drafts

A draft drawn by a bank on funds that it has on deposit with an­other bank is a bank draft. Thus, such a document is a draft drawn by one bank on a second bank. Banks use these drafts in their own transactions. Sometimes a person or a business firm wishes to make an initial purchase for a big sum. The seller refuses to accept checks of customers whose credit is not established. Therefore such customers may use bank drafts purchased from a bank.

4. Money Orders

Money orders are often used by persons who do not have checking accounts. A money order is a draft issued by a post office, bank, express company, or telegraph company for use in making payment or transfer­ring funds upon the credit of the issuer. Money orders serve the same purpose as checks. For example, a money order is purchased from one post office, which orders payment by another post office in the home­town of the payee designated by the purchaser.

5. Traveller's Checks

Hotels and retailers around the world understandably prefer to take checks from persons they know and can trust only. At the same time, travellers do not want to carry cash on journeys. To meet the needs of both the traveller and the merchant, traveller's checks have been devised. A traveller's check is a check drawn by a reliable finan­cial institution (such as Bank of America or American Express Com­pany) on itself or its agent. Traveller's checks may be purchased from banks and other institutions. At the time they are purchased, each check is signed by the buyer. In a foreign land, when cashing one of the checks the traveller writes in the name of the payee and again signs her or his name as originally written on the check. This is done in the presence of the payee who can compare the signatures. The payee, who knows and trusts the drawee bank or issuing company, is usually willing to take the traveller's check. Thereafter, the payee may de­posit and collect the traveller's checks in the same manner as other checks. Although traveller's checks are still used, the greatly ex­panded use of credit cards throughout the world has reduced the need for them.

TASKS

I. Give Russian equivalents for the following words and word combinations:

bank draft

certificate of deposit

certified check

collateral note

comakers

dishonor

draft

judgment note

money order

mortgage note

sight draft

stop payment order

time draft

traveler's checks