GA Code § 11-3-104 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 3 - Negotiable Instruments|Part 1 - General Provisions and Definitions|§ 11-3-104. Negotiable Instrument

  Except as provided in subsections (c) and (d) of this Code section, "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:   Is payable to bearer or to order at the time it is issued or first comes into possession of a holder;   Is payable on demand or at a definite time; and   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" means a negotiable instrument.   An order that meets all of the requirements of subsection (a) of this Code section, except paragraph (1) of subsection (a) of this Code section, and otherwise falls within the definition of "check" in subsection (f) of this Code section is a negotiable instrument and a check.   A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this article.   An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either.   "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank; or (ii) 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."   "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.   "Teller's check" means a draft drawn by a bank (i) on another bank; or (ii) payable at or through a bank.   "Traveler's check" means an instrument that (i) is payable on demand; (ii) is drawn on or payable at or through a bank; (iii) is designated by the term "traveler's check" or by a substantially similar term; and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.   "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.    An undertaking or power to give, maintain, or protect collateral to secure payment;   An authorization or power to the holder to confess judgment or realize on or dispose of collateral; or   A waiver of the benefit of any law intended for the advantage or protection of an obligor.    (Code 1981, §11-3-104, enacted by Ga. L. 1996, p. 1306, § 3.)   Code Commission notes.   - Pursuant to Code Section 28-9-5, in 1996, semicolons were substituted for commas near the end of subparagraphs (a)(3)(i) and (a)(3)(ii).   Law reviews.   - For note, "The Law of Evidence in the Uniform Commercial Code," see 1 Ga. L. Rev. 44 (1966). For note analyzing consumer protection in retail installment contracts with reference to waiver of defenses by purchaser and the denial of holder in due course status to assignee of contract, in light of Geiger Fin. Co. v. Graham, 123 Ga. App. 771, 182 S.E.2d 521 (1971), see 23 Mercer L. Rev. 673 (1972). For note, "Negotiable Promissory Notes Containing Time and Demand Provisions: The Need for Consistent Interpretation," see 19 Ga. L. Rev. 717 (1984). For comment on Geiger Fin. Co. v. Graham, 123 Ga. App. 771, 182 S.E.2d 521 (1971), see 8 Ga. St. B.J. 400 (1972).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Unconditional Promise   "Order" or "Bearer"   Checks   Notes    OPINIONS OF THE ATTORNEY GENERAL   Money order.   - Since essence of commercial paper is negotiability, money order drawn as negotiable instrument is commercial paper. 1962 Op. Att'y Gen. p. 340.    Investing school funds in certificates of deposit issued by institutions other than those covered by O.C.G.A. § 20-2-411. - The phrase "certificates of deposit" as used in O.C.G.A. § 20-2-411 applies to certificates of deposit issued by commercial banks and by federal or state chartered savings and loan associations and investment of school funds in "certificates of deposit" issued by institutions other than those named would present a question of whether such investment was prudent and in exercise of sufficient care and diligence. 1969 Op. Att'y Gen. No. 69-306.   RESEARCH REFERENCES   Am. Jur. 2d.   - 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 653 et seq., 888. 11 Am. Jur. 2d, Bills and Notes, §§ 21 et seq., 44 et seq., 52 et seq., 88, 98, 128 et seq., 217. 17A Am. Jur. 2d, Contracts, §§ 300-302. 50 Am. Jur. 2d, Letters of Credit and Credit Cards, §§ 3, 5, 10, 19. 68A Am. Jur. 2d, Secured Transactions, §§ 14, 55. 69 Am. Jur. 2d, Securities Regulation - State, § 76.   C.J.S.   - 10 C.J.S., Bills and Notes, §§ 127, 135 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 3-104.   ALR.    - Bills and notes: negotiability as affected by provision in relation to interest or discount, 2 A.L.R. 139; 51 A.L.R. 294; 58 A.L.R. 1281.    Effect of verbal order with respect to payment of check or transfer of bank deposit, 2 A.L.R. 175.    Title to commercial paper deposited by the customer of a bank to his account, 11 A.L.R. 1043; 16 A.L.R. 1084; 42 A.L.R. 492; 68 A.L.R. 725; 99 A.L.R. 486.    Writing on the margin or on the back of a bill or a note at the time of its execution as a part thereof, 13 A.L.R. 251; 155 A.L.R. 218.    Reference to extrinsic agreements as affecting negotiability of bill or note, 14 A.L.R. 1126; 33 A.L.R. 1173; 37 A.L.R. 655; 61 A.L.R. 815; 104 A.L.R. 1378.    Negotiability of instrument as affected by incompleteness of the attempt to fix due date, 19 A.L.R. 508.    Absence of revenue stamp as affecting bona fides of purchaser of bill or note, 21 A.L.R. 1125.    Private corporate bonds as negotiable within the meaning of Negotiable Instruments Act, 31 A.L.R. 1390.    Acceleration provision as affecting negotiability, 34 A.L.R. 872; 72 A.L.R. 268.    Negotiability of instrument payable in "current funds," "currency," etc., 36 A.L.R. 1358.    Negotiability of municipal bonds as affected by reference to fund from which they are to be paid, 42 A.L.R. 1027.    Right of holder to sue bank in respect of deposit made, for payment of existing obligation other than check, 50 A.L.R. 1012.    Passing of title to goods by acceptance of draft for purchase price, with warehouse receipt attached, or by transfer of draft with receipt, 55 A.L.R. 1116.    Assignability of nonnegotiable certificate of deposit, 59 A.L.R. 1478.    Necessity that checks be signed by all persons in whose name the deposit stands, 61 A.L.R. 967.    Validity and effect of provision in contract that it shall be regarded as a negotiable instrument, 79 A.L.R. 33.    Liability of endorser of non-negotiable commercial paper, 79 A.L.R. 719.    Negotiability as affected by reservation of obligor's right to anticipate time of payments, 81 A.L.R. 396.    Bank deposit for purpose of meeting certain checks or classes of checks, 86 A.L.R. 375.    Right to insist upon production and surrender of non-negotiable instrument, or upon indemnity bond, as condition of payment, 98 A.L.R. 1489.    Negotiability of bill or note as affected by provision authorizing confession of judgment, 117 A.L.R. 673.    Provision of negotiable instruments law declaring conclusive presumption in favor of holder in due course of valid delivery of negotiable paper as applicable where instrument never had inception by delivery, 123 A.L.R. 1360.    Validity, nature, and enforceability of an instrument which states that a specified sum is owed, but includes no express promise to pay it, 127 A.L.R. 650.    Negotiability of paper as affected by provisions therein relating to future contingent fund or security for its payment, 134 A.L.R. 946.    Construction and application of provision of Uniform Negotiable Instruments Act that waiver embodied in instrument itself is binding upon all parties, 140 A.L.R. 1253.    Conflict between provisions of note and of conditional sale instrument in connection with which note is given, 143 A.L.R. 591.    Recovery back of money paid for bank draft, 153 A.L.R. 393.   Validity of provision in promissory note or other evidence of indebtedness for payment, as attorneys' fees, expenses, and costs of collection, of specified percentage of note, 17 A.L.R.2d 288.   Necessity of introducing evidence to show reasonableness of attorney's fees where promissory note provides for such fees, 18 A.L.R.3d 733.   What constitutes unconditional promise to pay under Uniform Commercial Code § 3-104(1)(b), 88 A.L.R.3d 1100.   Effect on negotiability of instrument, under terms of UCC § 3-104(1), of statements expressly limiting negotiability or transferability, 58 A.L.R.4th 632.   What constitutes undertaking or instruction to do any act in addition to payment of money as limitation on definition of negotiable instrument under UCC § 3-104, 75 A.L.R.5th 559.   What constitutes "fixed amount of money" for purposes of § 3-104 of Uniform Commercial Code providing that negotiable instrument must contain unconditional promise to pay fixed amount of money, 76 A.L.R.5th 289.   When is instrument "payable to bearer or to order" as required to constitute negotiable instrument under Article 3 of the Uniform Commercial Code §§ 3-104(a)(1) and 3-109, 77 A.L.R.5th 523.