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

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.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. Id.
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.