Daily One Banking Term : ( 07 oct 2017 )


✔ General Lien: A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt.

✔ Guarantee: A contract between guarantor and beneficiary to ensure performance of a promise or discharge the liability of a third person. If promise is broken or not performed, the guarantor pays contracted amount to the beneficiary.

✔  Hedge: A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.

✔ Holder: Holder means any person entitled in his own name to the possession of the cheque, bill of exchange or promissory note and who is entitled to receive or recover the amount due on it from the parties. For example, if I give a cheque to my friend to withdraw money from my bank,he becomes holder of that cheque. Even if he loses the cheque, he continues to be holder. Finder cannot become the holder.