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 ?
Thus, negotiable instruments allow an investor working with a U.
In the final judgment, the trial court determined that the RISC was a negotiable instrument as defined by F.
When a transfer of a negotiable instrument is made to someone who qualifies as a holder in due course, all personal defenses against the holder in due course are stopped.
The First Circuit's decision also furthers the statute's purpose by requiring a more specific showing to vitiate a holder in due course defense when a fiduciary transfers a negotiable instrument to a defendant in violation of a duty owed to its principle.
What is gone, however, is nothing physical, only the intangible value of the check that comes from the rights that the payee has under the law of commercial paper and negotiable instruments.
19) According to the Negotiable Instruments Law, one does not have either liability or rights under a negotiable instrument except through the act of signing or affixing a seal to it.
Next, in resolving the question of whether Share Certificate #12093 was a negotiable instrument, the Court refers to subsection 53(3) of the OBCA, which states "Except where its transfer is restricted and noted on a security in accordance with subsection 56(3), a security is a negotiable instrument.
Therefore, the CDs were neither negotiable instruments nor certificated securities.
Criminal investigators working negotiable instrument fraud cases, especially involving organized groups, have begun to achieve significant results by using a task-force approach and by promoting effective cooperation with their international law enforcement counterparts.
The guaranty shall be either a bid bond (executed on the form furnished by the Owner), cashier%s check, certified check, or other negotiable instrument equivalent to (5) percent of the amount of the bid, as assurance that the bidder will, upon acceptance of his/her bid, execute the Contract and cause to be executed a Performance Bond and Payment Bond, acceptable to the Owner, within 10 calendar days following notice of contract award.
An official statement from the KPH Dream Cricket Pvt Ltd said that NVD has been asked to make the payment within 15 days from the date of receipt of the notice failing which a complaint under the Negotiable Instrument Act, 1881, would be filed against them in the Chandigarh Court.