negotiable instrument

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Negotiable Instrument

A Commercial Paper, such as a check or promissory note, that contains the signature of the maker or drawer; an unconditional promise or order to pay a certain sum in cash that is payable either upon demand or at a specifically designated time to the order of a designated person or to its bearer.

negotiable instrument

n. check, promissory note, bill of exchange, security, or any document representing money payable which can be transferred to another by handing it over (delivery) and/or endorsing it (signing one's name on the back either with no instructions or directing it to another such as "pay to the order of Pamela Townsend.") (See: check, promissory note, bill of exchange)

negotiable instrument

noun bank check, bank note, bank paper, bill, bill of exchange, cashier's check, check, commercial instrument, commercial paper, commercial transition, debenture, draft, negotiable paper, note, personal check, promissory note
Associated concepts: dishonor, named payee presentment
See also: coupon, debenture, draft, letter of credit, note, security, stock

negotiable instrument

an instrument that constitutes an obligation to pay a sum of money and that is transferable by delivery so that the holder for the time being can sue in his own name. Negotiable instruments represent an exception to the general rule that a person cannot give a better title than he has. The categories of negotiable instrument include the BILL OF EXCHANGE, PROMISSORY NOTES and bearer bonds.
References in periodicals archive ?
Once created, the instrument is then sold by the supplier to an investor using a process similar to that of open-account receivables sales, but it usually involves a physical embodiment of the negotiable instrument.
An uncertainty which does not impair the functions of negotiable instruments in the judgment of business men ought not to be regarded by the courts.
Reification turns negotiable instruments into liquid assets by enabling some level of freedom from claims and defenses for all holders (not just those in due course), and it encourages borrowing by eliminating the risk of multiple satisfactions.
The UCC authors based Article 3 on a revision of the Uniform Negotiable Instruments Law, which closely mirrored the British Bill of Exchange Act of 1882, which codified English common law from the eighteenth and nineteenth centuries.
First, there was a direct physical loss of a check or negotiable instrument due to theft by deception.
Payette also makes an effort to consider, if only summarily, the impact of a wide range of devices such as compensation, subrogation, actual possession of a negotiable instrument, seizing creditor's priority, and the Paulian action that indirectly, or by ricochet, generate an execution preference (nos.
the only software solution provider for transferable electronic negotiable instruments, securities and source records, and Flagstar Bancorp, Inc.
Unconventionally large currency transactions, particularly in exchange for negotiable instruments or for the direct purchase of funds transfer services.
Agents have seized several of Furmanski's airplanes, and hundreds of thousands of dollars in cash and negotiable instruments from his Los Angeles residence, which the FBI has linked to the allegedly fraudulent profits.
Bearer shares are negotiable instruments with no record of ownership so that title of the underlying entity is held essentially by anyone who possesses the bearer shares.
The Walters relied on the negotiable instruments law as stated in Kahler, 18 TC 31 (1952).
In the years since China began its market reforms, negotiable instruments have played an increasingly important role in China's economy.