D is corrent. The instrument is a negotiable draft since it meets all of the requirements of a negotiable instrument and is a three-party instrument which contains an order on its face. Olympia Sales Corp. is the drawer, New City Bank is the drawee, and Donald Kerr is the payee. It is specifically a negotiable time draft since it is payable at some future, determinable time (60 days after date).
A is incorrect. A check is a form of a draft which is drawn on a bank and payable on demand. The instrument presented is not payable on demand but is payable 60 days after date.
B is incorrect. This instrument is not a trade acceptance since it is not drawn on and accepted by the buyer.
C is incorrect. A promissory note involves only two parties, a maker and a payee, and contains a promise on its face.
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