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.
References in periodicals archive ?
If the purchaser of a negotiable instrument is a holder in due course, the purchaser may not be subject to many of the defenses available to creditors under Article 9 of the UCC.
51) Likewise, memoranda inserted into a negotiable instrument for mere convenience in matters of reference generally do not affect the negotiability of the instrument because they are not incorporated into the instrument and cannot affect the liability of the maker, and so are immaterial.
The negotiable instrument is thus "a courier without luggage.
A Holder In Due Course is entitled to payment on a negotiable instrument in spite of defenses otherwise available to the maker or drawer of the instrument.
31) Several state and federal courts, however, determined that revised UCC section 3-307 requires plaintiffs to prove that a defendant had knowledge of a fiduciary's relationship to the plaintiff, as well as notice of the fiduciary's breach in tendering a negotiable instrument to the defendant.
A check, both as a tangible piece of paper and as a negotiable instrument representing the intangible right to collect money upon presentment, would generally qualify as covered property under Coverage C.
So the impact of Book Six on negotiable instruments and on various intellectual property rights is extensively considered (nos.
The decision to address negotiable instrument usage in a limited fashion reflects a tension in the Chinese government's present approach to reform: to what degree should the state control economic activity?
The Cane Purchase Receipt (CPR) be turned into a negotiable instrument like a cheque and summary will be moved to introduce the policy changes.
The proposed CTA would facilitate check truncation by creating a negotiable instrument called a substitute check.
UCC Section 9-105(1)(i) defines an instrument as either (a) a negotiable instrument or a certificated security, or (b) any other writing that evidences a right to the payment of money (other than a security agreement or lease) if that writing "is of a type which is in the ordinary course of business, transferred by delivery with any necessary endorsement or assignment.