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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
Thus, negotiable instruments allow an investor working with a U.S.-based buyer to purchase receivables from a wider universe of suppliers than it could under an open-account program.
[section]673.1041(1) of the words "with or without interest or other charges." (41) The requirement of precision in the amount of negotiable instruments applies to the principal amount, and not to ancillary and incidental additions of interest or exchange.
To appreciate how Article 3 functions as a title system, it is necessary to consider a key feature of negotiable instruments: under the doctrine of merger, the instrument is the reification of the payment obligation.
Negotiation--A person who holds a negotiable instrument is identified as a holder.
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.
The few published cases on homeowners property coverages, such as Crunk and Brown, can be further distinguished on the basis that the policies insured against risk of "loss" rather than "physical loss." Similarly, fidelity bonds, bankers bonds, crime policies, and additional coverages for employee dishonesty and money and securities can be distinguished as not only insuring against "loss" instead of "physical loss," but also as specifying "checks" or "negotiable instruments" as items of covered property (See for example, ISO BP 00 02 12 99 [G.3 and G.4]; Cumis ins.
A survey of fraud-control arrangements in Australian government agencies indicates that the most frequent internal fraud is inappropriate use of petty cash and other negotiable instruments, such as checks.
eOriginal Inc., 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.
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.(1) Their usage facilitates circulation of commodities, timely settlement of debts, and decreases reliance on cash.(2) Promoting the increased use of negotiable instruments is significant in light of China's huge circulation of cash,(3) which has made it difficult to control the total money supply, slowed the circulation of capital, and complicated monetary clearing procedures.(4) While negotiable instruments have been utilized for some time according to commercial practice and custom, no overarching legal framework has existed to clarify and protect parties' legal rights.(5)