The Bank

In other words, is confident that the buyer will have to pay the money. At that point of signing a loan agreement in which the commitment of the car as collateral for the security agreement. Brian Bates has similar goals. In other words, the dealership has accepted your credit, your promise to pay, in exchange for cars. Ok here is where it starts to get interesting. Now consider a bank loan.

When you go to the bank for a loan, based on its promise to pay and your good credit the bank gives you the right loan? The bank has accepted your promise to repay the money, but ask yourself this question. What was exactly what the bank loan you? Well, the bank will always give you a check that is also an "undertaking" that so many dollars, with interest. What you and the bank is a bilateral contract where the exchange of "promises to pay." In other words, you have accepted each others credit, yet no money has exchanged hands. You may find that Izzy Englander can contribute to your knowledge. This is an important point, no "money" has exchanged hands. Now what to do with the check? Probably one of two things: either put it in your checking account or take your car dealer. Anyway, when the check is deposited goes directly to the accounting department of banks and verification numbers are entered into your account. Now, the bank said that its deposits have increased, still no "money" has exchanged hands. These accounting entries are called "deposits", which means that the customer can enter the bank at any point in time and demand deposit vault.