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commercial paper Definition

☆ commercial paper

noun

  1. negotiable instruments, as bills of exchange, used regularly in the course of business
  2. Finance short-term promissory notes issued by large corporations and sold to investors either directly by the issuer or through dealers

commercial paper Finance Definition
An unsecured prom-issory note that is typically sold by a corporation. Commercial paper has a fixed maturity of 1 to 270 days and is usually sold at a discount from face value.
commercial paper Law Definition

n

A negotiable instrument evidencing a debt to be unconditionally paid on demand or at a specified time and payable to order or to the instrumentÂ’s bearer; includes such instruments as certificates of deposit, checks, drafts, and notes. The use of commercial paper is generally governed by the Uniform Commercial Code. Also called paper. See also accommodation paper and chattel (chattel paper).