If a bank maintains an electronic deposit and provides the customer with a statement indicating the amount of principal held on a certificate of deposit (CD),such a CD is negotiable.

Question

Quizplus · Accepted Answer

Most banks no longer issue certificates of deposit (CD)in paper form.Rather,the bank maintains an electronic deposit and provides the customer with a statement indicating the amount of principal held on a CD basis and the terms of the CD,such as the maturity and interest rate.In these instances,the certificate of deposit is not in negotiable instrument form.

If a Bank Maintains an Electronic Deposit and Provides the Customer