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 ?
To bypass these challenges, buyers sometimes opt to implement an alternative structure that utilizes negotiable instruments instead of accounts receivable.
On its face, F.S [section]673.1041(1) defines a negotiable instrument as an unconditional promise or order to pay "a fixed amount of money, with or without interest or other charges described in the promise or order." (35) A provision in a note calling for the payment of interest, thus, cannot as a matter of law destroy the negotiability of the note.
By enhancing freedom from defenses and freedom from claims, reification increases the liquidity, and hence the value, of negotiable instruments. The negotiable instrument is thus "a courier without luggage." (97) Increased liquidity may benefit both creditors and obligors.
They have lawyers who can sort out whether calling air miles a negotiable instrument is reasonable.
When a transfer of a negotiable instrument is made to someone who qualifies as a holder in due course, all personal defenses against the holder in due course are stopped.
The First Circuit's decision also furthers the statute's purpose by requiring a more specific showing to vitiate a holder in due course defense when a fiduciary transfers a negotiable instrument to a defendant in violation of a duty owed to its principle.
First, there was a direct physical loss of a check or negotiable instrument due to theft by deception.
The Negotiable Instruments Law acknowledges a need to standardize transactions involving negotiable instruments, as well as the need to protect parties' legal rights and to promote "the development of the socialist market economy."(19) According to the Negotiable Instruments Law, one does not have either liability or rights under a negotiable instrument except through the act of signing or affixing a seal to it.(20) Article 4 of the Negotiable Instruments Law states in part: "Other debtors who have put their signatures or seals on the negotiable instruments shall be obliged to perform the obligations arising out of the negotiable instruments.(21) The use of the term "other debtors" or "debtor" in Article 4 is ambiguous.
A certificate of deposit is a note of the bank." 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."
Criminal investigators working negotiable instrument fraud cases, especially involving organized groups, have begun to achieve significant results by using a task-force approach and by promoting effective cooperation with their international law enforcement counterparts.
KPH lawyers have sent legal notice against bouncing of cheques to NVD Solar Limited, Saibal Kumar Hazra and other Directors of NVD Solar Limited U/ S 138 of The Negotiable Instrument Act, 1881, as amended, by The Banking Public Financial Institutions & Negotiable Instruments Laws Amendment Act, 1988 for bouncing of four cheques of ` 25 lakh each tendered by NVD India to KPH .