Two Name Paper

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.