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 ?
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.
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.
Bid security in the form of a bid bond, certified check, or other negotiable instrument equivalent to five percent (5%) of the total bid is required and shall be made payable to the Little Rock Municipal Airport Commission (LRMAC).
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.