Negotiable Instruments

person possessing a negotiable instrument that is payable upon demand to whoever presents it for payment

empty signature on a negotiable instrument that does not specify a particular endorsee or owner of said instrument, payable to the bearer

type of negotiable instrument that is a promise to pay a sum at a future date; usually issued by a bank or other financial institution

type of negotiable instrument that is an order to pay an amount on demand or when it is presented

common name for short-term, unsecured negotiable instruments issued by companies

type of negotiable instrument that is payable when it is presented for payment or on demand

three-party negotiable instrument in which one party orders another party to pay a third party on demand; often submitted electronically

one who makes the order to pay on a check; i.e., the one who signs it

one who is ordered to pay on a check, usually a bank

signature added to a negotiable instrument to transfer ownership rights in the instrument; for example, the signature on a paycheck

person in possession of a negotiable instrument received in good faith without any notice of defect

party who makes the promise to pay in a note

signed document that includes an unconditional promise or order to pay a precise amount, either on demand or at a specified time

person or organization receiving funds

person or organization that distributes funds

defense that can be asserted against a holder of a negotiable instrument but not a holder in due course; similar to defenses for breach of contract

two-party negotiable instrument that includes a promise to pay a specific amount at a specific time, usually in the form of a loan

method of signing a negotiable instrument when passing title to another in which the signer of the instrument disclaims any legal liability for responsibility for payment on the note, often with the notation "without recourse"

method of signing a negotiable instrument by the payee that restricts to whom it may be transferred

method of signing a negotiable instrument that identifies a specific person or institution that can receive the funds when different from the one the instrument was originally made out to

negotiable instrument that is payable at a specific future date. Examples are promissory notes and certificates of deposit with specific maturity dates.

method to avoid payment to all holders of a negotiable instrument, including a holder in due course (HDC)