The final judgment was prepared by the attorney for the defendants, who had argued at the hearing that the contract was a
negotiable instrument. In the final judgment, the trial court determined that the RISC was a
negotiable instrument as defined by F.S.
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.
Contractual liability--Refers to a liability of any party who signs a
negotiable instrument, whether as a maker, drawer, drawee, or endorser.
(21) In 1985, in an age where people began to conduct fewer face-to-face transactions, the ALI and NCCUSL responded to the need to modernize Article 3's governance of
negotiable instruments by considering broad changes to Article 3.
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. By exercising those rights, the person who cashes the check can obtain money in a tangible form, or deposit it as an intangible credit to his own account.
A
negotiable instrument shall be acquired against a
Counterfeiters duplicate corporate and payroll checks, traveler's checks, credit cards, certified bank checks, money orders, currency, and other
negotiable instruments, as well as personal identification.
The "holder in due course" doctrine is said to be, not only the primary feature of
negotiable instrument law, but "the most important principle in the whole law of bills and notes." (9) This doctrine grew out of an information vacuum typical in the age before computers and worldwide communications.
Various forms of
negotiable instruments have been deemed enforceable under these separate but distinct laws.
Exhibit 1, on page 39, summarizes the rules under the Uniform Commercial Code (UCC) regarding personal liability for
negotiable instruments. 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.
To preserve a lender's ability to sell a promissory note on the secondary market, nearly every note secured by a mortgage is intended to be, and usually is, a
negotiable instrument under Art.
