Source: http://www.orderofmerchants.com/negotiable-instruments.html
Timestamp: 2018-08-17 18:30:00
Document Index: 243990613

Matched Legal Cases: ['art 1', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3']

What is a Negotiable Instrument? My title
​Negotiable Instruments
Are My Monthly Billing Statements Negotiable Instruments?
Discharging Negotiable Instruments - Part 1
Uniform Commercial Code § 3-104(a)
Except as provided in subsections (c) and (d), "negotiable instrument" means 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, if it:
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment
of money, but the promise or order may contain:
​Instrument Definition
§ 3-104(b)
​§ 3-104(e)​
"note" if it is a promise and is a
"draft" if it is an order.
§ 3-104(f)
A draft, other than a documentary draft, payable on demand and drawn on a bank or
A cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order."
§ 3-103(a)(12)
A written undertaking to pay money signed by the person undertaking to pay. An acknowledgement of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.
§ 3-103(a)(8)
A written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
What is an Unconditional Promise or Order?
§ 3-106 (a)
§ 3-106 (b)
Except as provided in this section, for the purposes of Section 3-104(a), a promise or order is unconditional unless it states
A promise or order is not made conditional
1. The definition of "negotiable instrument" defines the scope of Article 3 since section 3-102 states: "This Article applies to negotiable instruments." The definition in section 3-104(a) incorporates other definitions in Article 3. An instrument is either a "promise," defined in Section 3-103(a)(9), or "order," defined in 3-103(a)(6). A promise is a written undertaking to pay money signed by the person undertaking to pay. An order is a written instruction to pay money signed by the person giving the instruction. Thus, the term "negotiable instrument" is limited to a signed writing that orders or promises the payment of money. "Money" is defined in Section 1-201(24) and is not limited to United States Dollars. It also includes a medium of exchange established by a foreign government or monetary units of account established by an intergovernmental organization or by agreement between two or more nations.
Five other requirements are stated in Section 3-104(a):
First, the promise or order must be "unconditional." The quoted term is explained in Section 3-106.
Second, the amount of money must be "a fixed *** amount with or without interest or other charges described in the promise or order." Section 3-112(b) relates to interest.
Third, the promise or order must be "payable to bearer or to order." The quoted phrase is explained in Section 3-109. An exception to this requirement is stated in subsection (c).
Fourth, the promise or order must be payable "on demand or at a definite time." The quoted phrase is explained in Section 3-108.
Fifth, the promise or order may not state "any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money" with three exceptions. The quoted phrase is based on the first sentence of N.I.L. Section 5 which is the precursor of "no other promise, order, obligation or other power given by the maker or drawer" appearing in former Section 3-104(1)(b).
-Commercial and Debtor-Creditor
Law, 237-238 (2007 ed.)