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 ?
Anyone can indorse a check, and checks, unlike some earlier types of negotiable instruments, are payable on demand, or without delay.
Articles 8 and 9 specify certain information that must be included in a negotiable instrument.
Indeed, under negotiable instrument law prior to Article 3, only a holder in due course was immune to the defense of theft, not a mere holder.
1) The most prevalent problem in the industry, by far, centers on check fraud, but also involves other counterfeit negotiable instruments, such as traveler's checks, credit cards, certified bank checks, money orders, and currency.
10) The idea is that if the note holder obtains a foreclosure or money judgment on the note, the negotiable instrument should be removed from the stream of commerce to avoid the possibility of a borrower facing a later claim by someone else claiming they are a holder in due course.
For example, corporate principals may be subject to personal liability because of the way they signed corporate checks or other negotiable instruments.
KPH lawyers have sent legal notice against bouncing of cheques to NVD Solar Limited, Saibal Kumar Hazra and other Directors of NVD Solar Limited U/ S 138 of The Negotiable Instrument Act, 1881, as amended, by The Banking Public Financial Institutions & Negotiable Instruments Laws Amendment Act, 1988 for bouncing of four cheques of ` 25 lakh each tendered by NVD India to KPH .
The bill also provides that if a check or other negotiable instrument is sent unsolicited, a consumer would not be liable for the debt unless the creditor could prove that the consumer received and negotiated the instrument.
The court passed the direction on a plea filed by Bhalla, challenging the metropolitan magistrate's order, which convicted him under the Negotiable Instrument Act.
Topics addressed include: applicability of Article 3, characteristics of a negotiable instrument, negotiation and endorsement, holder in due course, defenses, liability and warranty, checks and banking, documents of title and letters of credit.
The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which permits banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks.
Check 21 legalizes a negotiable instrument called a substitute check, which permits banks to truncate original checks, to process check information electronically and to deliver substitute checks to banks that want to continue receiving paper checks.