negotiable instrument

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negotiable instrument,

bill of exchange, check, promissory note, or other written contract for payment that may serve as a substitute for money. It is simple in form and easy to transfer. Transfer of a negotiable instrument, accomplished by delivery or endorsement and delivery, gives the new holder of the contract the right to enforce fulfillment in his own name. Negotiable instruments made payable to bearer are transferred by delivery; those made payable to order are transferred by endorsement and delivery. Like commercial papercommercial paper,
type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good
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, negotiable instruments were developed to meet the needs of trade. They are used by businessmen to facilitate long-distance transactions and to avoid the constant exchange of large amounts of cash.
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References in periodicals archive ?
To bypass these challenges, buyers sometimes opt to implement an alternative structure that utilizes negotiable instruments instead of accounts receivable.
The court needed to decide whether electronic transfers were similar to negotiable instruments. More generally, the court needed to compare new devices to old devices.
An uncertainty which does not impair the functions of negotiable instruments in the judgment of business men ought not to be regarded by the courts.
UCC Article 3 provides a method for transferring negotiable instruments. (56) Transfer of a negotiable instrument under Article 3 occurs through delivery of the instrument to the transferee "for the purpose of giving to the person receiving delivery the right to enforce the instrument." (57) Thus, for negotiable instruments, transfer is about enforcement rights.
A negotiable instrument is typically a written document that either provides evidence of financial credit or acts as a substitute for money.
Garland, A New Law of Negotiable Instruments: Revised Article 3 of the UCC, 109 BANKING L.J.
Upon successful completion, you should understand the role of credit in financial management, the components of effective credit department systems and procedures, specific government regulations that pertain to business credit, credit and policy procedures, selling terms, negotiable instruments, the Uniform Commercial Code, credit investigations, financing and insurance, business credit fraud, factors associated with credit limits, out-of-court settlements, and bankruptcy.
The purpose is to provide harmonized rules for the control of cash, including negotiable instruments, promissory notes, money orders, and currency.
West (Eagan, MN) has published "Nickle's Payment Law in a Nutshell," a softbound book that explains the fundamentals of negotiable instruments, including promissory notes, drafts, checks, and certificates of deposit.
Flint Ink Corporation, Ann Arbor, MI, and the SICPA Group, Lausanne, Switzerland, have finalized several business transactions in which Flint Ink has acquired SICPA's worldwide heatset and coldset ink business and SICPA has acquired Flint Ink's worldwide business for security inks used on currency and other negotiable instruments. Closing occurred on March 14.
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.
Negotiable instruments, for example, rely upon formal requirements, including a signature, for their ability to change hands with ease, rapidity, and minimal interruption.