Answer-A Demand Promissory Note (DPN) executed by a borrower in favor of a bank is best defined as which of...

Under Section 4 of the Negotiable Instruments Act, 1881, a Promissory Note is an instrument in writing not being a bank-note or a currency-note containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument. In banking facilities, a DPN ensures the debt is payable on demand whenever the bank chooses to recall the facility.

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A Demand Promissory Note (DP

N executed by a borrower in favor of a bank is best defined as which of the following?

A An unconditional written undertaking promising to pay a specified sum on demand or after a fixed period to the bearer only.

B An unconditional written promise signed by the maker to pay a specified sum of money on demand to, or to the order of, a specified person.

C A conditional order issued by the bank directing the borrower to pay funds upon presentation of shipping documents.

D A tripartite agreement involving the borrower, bank, and guarantor to secure immovable property against default.

E A non-negotiable receipt issued by the bank confirming physical custody of the borrower's stock inventory.

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A Demand Promissory Note (DP

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