LIABILITIES OF GENERAL

ENDORSER

A party who endorses

without any conditions or
qualification make the
following warranties.
• That the check is genuine and all
respect what it purpose to be;
• That he has good title to it;
• That all prior parties have the
capacity to contract;
• That the check is, at the time of his
endorsement valid and subsisting. It
will be paid, and if dishonored, he
will pay the amount thereof to the
holder or any subsequent endorser
who may be compelled to pay it.
GUIDELINES IN ACCEPTING CHECKS
FOR PAYMENT:
1. Date must be current (examine month
,day ,and year);
2. Amount in words must tally with the
amount in figures;
3. Payee must be the name of the
company(corporate accounts);
4. Must be signed by the drawer;
5. Any erasure or adjustment must be
validated by the full signature of the
6. If company check, corporate title
must be indicated. Also, ensure all
required signatories sign the check;
7. Whenever more than one receipt its
issued for a single check, write the
amount of the check number on all
receipts covered by it;
8. When payment is part cash and part
check, indicate how much is cash
and how much is the amount of
check.
BANK DRAFT AND BILL
EXCHANGE
A bill of exchange orders bank to make payment
to a specified party, usually either the exporter
or the exporter’s bank.

TWO MAIN TYPES:

SIGHT DRAFT-is payable on demand, that is, as
soon as the importer’s bank receives it.
TIME DRAFT- is payable on some future date.
TYPES OF BANK DEPOSITS
SAVING DEPOSIT- is an interest-earning deposit.
TIME DEPOSIT- is another interest-earning
deposit that may only withdrawn after a
stipulated period of time.
DEMAND DEPOSIT- also referred to as a checking
or current account, generally does not earn
interest.
NOW ACCOUNT- is also an interest-earning
savings deposit account from which a
withdrawal is made by means of a check
known as a “NEGOTIABLE ORDER OF
WITHDRAWAL”
THE PHILIPPINE MONEY MARKET

The Philippine money market is fairly

developed with an active commercial paper
and government securities in addition to
more typical interbank market.

TYPES OF MONEY MARKET INSTRUMENTS

USED:
CALL MONEY- are overnight placements by
bank with excess cash in other bank with
temporary reserve deficiencies.
FIXED TERM DEPOSITS- are deposits with
fixed term between one to twelve months
at a pre-agreed interest rate.

REPURCHASE AGREEMENT- are generally

short-term sale of government securities
with an agreement to repurchase on the
agreed maturity date.

TREASURY BILLS- are government debts

with maturities of less than a year issued
weekly through an auction.
BANK CERTIFICATES OF
DEPOSITS- are short-term
negotiable instruments issued
by banks for a fixed duration of
one to twelve months at a pre-
agreed interest rate
BANKER’S ACCEPTANCE - are
short-term debt obligations
guaranteed by large commercial
banks.
 THE MONEY MARKET
PARTICIPANTS
BUREAU OF TREASURY BILLS-these
short-term issues enable the
government to raise money to meet
necessary expenditures between
receipts of tax revenue.
BANGKO SENTRAL NG PILIPINAS-
participates in the money market
when conducting open market
operations.
GOVERNMENT SECURITIES ELIGIBLE
BIDDERS - make markets in treasury
securities by buying large blocks of
securities in the primary market and
disturbing them to customers.
COMMERCIAL BANKS- are the major money
market participants.
CORPORATE AND INSTITUTIONAL
INVESTORS - have at times large sums of
excess funds that are place in short-term
money market instruments.
THE PHILIPPINE BOND MARKET

THE PHILIPPINE DEBT MARKET IS

BROADLY DIVIDED INTO PUBLIC
SECTOR DEBT ISSUES AND PRIVATE
SECTOR DEBT ISSUES.
PUBLIC DEBT ISSUES - are issued by the
National Government, Bangko Sentral
and other government agencies.
PRIVATE DEBT ISSUES- are mainly issued
by commercial banks and corporations.
THE INSTRUMENTS COMMONLY
USED BY BOTH SECTORS ARE:
TREASURY BILLS(T-BILLS)- these are direct,
unconditional and general obligations of the
national government with an original maturity
of one year or less.

FLOATING RATE TREASURY NOTES(FRTNs)-

these are direct, unconditional and general
obligations of the national government with a
term of three years primarily aimed at long
term transformation of maturing treasury bills.
FIXED RATE TREASURY NOTES -these are
government securities aimed primarily
to develop the capital markets by
providing varying instruments and to
supplement the existing short-term
securities with longer term maturity.
NATIONAL GOVERNMENT - issues
government securities to finance public
expenditure.
COMMERCIAL BONDS- are allowed to float
bonds as part of their borrowing
activities.