negotiable instrument


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Negotiable instrument

An unconditional order or promise to pay some amount of money, easily transferable from one party to another.

Negotiable

A security that may be bought or sold. Generally, a negotiable security is traded on the secondary market, but the initial sale takes place on the primary market. Negotiable securities may be low-risk, such a Treasury bonds, or high-risk, such as stocks. They are also known as marketable securities. See also: Nonmarketable security.

negotiable instrument

A document signed by the maker or drawer,containing an unconditional promise to pay a certain sum of money on demand or at a definite time to the bearer or to order but without any other promise,order,obligation,or power.(See the Uniform Commercial Code,Article 3.)

References in periodicals archive ?
1041(1), which provides that a negotiable instrument "does not state any undertakings" in addition to the payment of money.
Reification turns negotiable instruments into liquid assets by enabling some level of freedom from claims and defenses for all holders (not just those in due course), and it encourages borrowing by eliminating the risk of multiple satisfactions.
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 court correctly held that chapter 106, section 3-307, of the General Laws of Massachusetts requires the plaintiff to show that defendant had knowledge of both the fiduciary's status as well as the fiduciary's breach to the plaintiff when tendering a negotiable instrument to the defendant.
Articles 8 and 9 specify certain information that must be included in a negotiable instrument.
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.
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 .
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.
Another holiday - but not under Negotiable Instrument Act - was declared on Kanshi Ram's birthday, on March 15.
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.
Under the UCC, a person who transfers a negotiable instrument may face warranty, liability if, for example, he or she endorses a negotiable instrument to a third party.
The BSP, after assuming power in 2007, had notified a holiday under negotiable instrument act on Nirvan Diwas (death anniversary) of Kanshiram.