negotiable instrument

(redirected from Negotiable instruments)
Also found in: Dictionary, Thesaurus, Legal, Financial.

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
..... Click the link for more information.
, 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.
References in periodicals archive ?
This means that, unlike with open-account programs, invoices sold as negotiable instruments will give the investor priority against claims of the supplier's other creditors, including in a bankruptcy proceeding.
The court needed to decide whether electronic transfers were similar to negotiable instruments.
21) The law draws a distinction, however, between collateral instruments qualifying the terms of negotiable instruments and collateral instruments destroying the negotiability of negotiable instruments.
UCC Article 3 provides a method for transferring negotiable instruments.
45) The decision properly effectuates the goal of the NCCUSL and ALI in drafting section 3-306 to facilitate commercial transactions by encouraging acceptance of negotiable instruments without fear of their invalidity.
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.
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.
So the impact of Book Six on negotiable instruments and on various intellectual property rights is extensively considered (nos.
Negotiable instruments, for example, rely upon formal requirements, including a signature, for their ability to change hands with ease, rapidity, and minimal interruption.
A survey of fraud-control arrangements in Australian government agencies indicates that the most frequent internal fraud is inappropriate use of petty cash and other negotiable instruments, such as checks.