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.
(51) Likewise, memoranda inserted into a negotiable instrument
for mere convenience in matters of reference generally do not affect the negotiability of the instrument because they are not incorporated into the instrument and cannot affect the liability of the maker, and so are immaterial.
UCC Article 3 applies only to negotiable instruments
. (43) For a promissory note to be negotiable under Article 3, it must comply with specific statutory requirements.
A person who is not himself a holder in due course, but who obtains a negotiable instrument
from a holder in due course is called a holder through a holder in due course.
The plaintiff asserted that it had properly vitiated the defendant's holder in due course defense by showing that the defendant had notice of the fiduciary's breach of duty, through which the defendant had received a negotiable instrument
Discussion: Under the ISO 1-10 00 03 10 00, personal property is generally insured under the following language: "We insure for direct physical loss to the property described in Coverage C caused by any of the following perils unless the loss is excluded in Section I Exclusions." A check, both as a tangible piece of paper and as a negotiable instrument
representing the intangible right to collect money upon presentment, would generally qualify as covered property under Coverage C.
Articles 8 and 9 specify certain information that must be included in a negotiable instrument
.(28) For example, Article 8 states that the monetary amount of the instrument shall be written out both in Chinese characters and in numbers.(29) One form does not govern over the other; in the event of a conflict between the two, the instrument is void.(30) Article 9 provides that the amount, date, and name of the payee cannot be altered without voiding the instrument.(31) However, the party issuing the instrument may modify other items in the instrument if he or she certifies the alterations by signature or seal.(32)
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
." [ 68]
The CDs were evidenced by a written notification saying "non-negotiable" and "non-transferable." Therefore, the CDs were neither negotiable instruments
nor certificated securities.
Outsider fraud now accounts for more than 60 percent of all fraud against financial institutions.(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.
Examination of the original purposes of negotiability, as well as recent changes to the Uniform Commercial Code, leads to the conclusion that mere possession of a negotiable instrument
(the promissory note) is insufficient to enforce a mortgage.
Generally, in order to enhance the credit quality of the trade paper, an aval or stamp, along with a signature, will be required to be placed directly on the negotiable instrument
as a form of endorsement from a local bank.