DEFINITION of 'Two Name Paper'

A nickname assigned to trade paper. Both Trade Acceptances and Bankers Acceptances can be called "two name paper." In order to bear this name, these instruments must carry two signatures.

BREAKING DOWN 'Two Name Paper'

The signatures for two name paper can be either as endorser or drawer. If the issuer of one of these instruments cannot pay the acceptance, then the accepting bank becomes responsible for its payment.

RELATED TERMS
  1. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  2. Order Paper

    1. An order paper is a negotiable instrument that is payable ...
  3. Acceptance Market

    Investment market based on short-term credit instruments. An ...
  4. Short-Term Paper

    Financial instruments typically with original maturities of less ...
  5. Valuable Papers Insurance

    A special type of property-casualty insurance. Valuable papers ...
  6. Accommodation Paper

    A negotiable instrument that provides a third-party promise of ...
Related Articles
  1. Investing

    Commercial Paper

    Commercial paper is a short-term debt security issued by financial companies and large corporations. The corporation promises the buyer a return, or profit, for making the loan. The return is ...
  2. Personal Finance

    Banker's Acceptance 101

    A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ...
  3. Investing

    Five Paper Companies Licensed To Print Money

    Here's a sector that significantly outperformed the broader market year to date.
  4. Managing Wealth

    Panama Papers Data Dump: Biggest Surprises

    First of all, there aren't 214,000 entities mentioned--there are more than 320,000.
  5. Small Business

    4 Tips for Choosing the Right Name for Your Business

    Discover some advice pertaining to the best ways to name a new business; learn what characteristics the name should include as well as what to prepare for.
  6. Investing

    PIMCO Report: The Case for High Yield Bonds in 2016

    Discover how PIMCO's 2015 white paper strays from the company's mission to identify investment opportunities and risks for its clients.
  7. Investing

    Watch Out For The Mutual Fund Metamorphosis

    A new name may make a fund look fresh and exciting, but has anything really changed?
  8. Managing Wealth

    Laws & Regulations To Know Before Changing the Name of Your Business

    Discover some of the most important steps you need to take after making a decision to change your legally established business name.
  9. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
RELATED FAQS
  1. Why is marketing important to a company in the utilities sector?

    Find out what a banker's acceptance is, how it works, and why it should be considered a safe and liquid money market instrument. Read Answer >>
  2. How do I obtain a banker's acceptance?

    Find out how to obtain a banker's acceptance, why you should treat it like a short-term loan and when you would most likely ... Read Answer >>
  3. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
  4. What is the Activities of Daily Living (ADL) hierarchy scale?

    Find out how a banker's acceptance is different than a post-dated check, even though both instruments represent a claim against ... Read Answer >>
  5. What are some examples of securities that can be found in a money market fund?

    Learn about examples of securities found in money market accounts. These securities need to be safe, liquid and of short-term ... Read Answer >>
Hot Definitions
  1. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  2. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  3. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  4. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  5. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  6. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
Trading Center