Sample Negotiable Check
- in writing
- signed by the maker, who makes a promise to pay, or drawer, who is ordered to pay on a check, usually a bank
- contains unconditional promise to pay
- has a fixed amount of money from the drawee, who makes the order to pay on a check
- on demand or at a definite time
- payable to order or bearer
There are also other conditions. For example, it must be written on something permanent, such as a piece of paper. Writing on materials such as a chalkboard or in pencil would not be considered permanent. The writing must also be portable, so it cannot be painted on the side of a barn, for instance. Signatures must be on the face of the instrument, but they can be in any form, including a rubber stamp. To satisfy the need for an unconditional promise or order to pay, the negotiable instrument must have words such as "pay on demand" or something that designates that payment is not subject to any conditions or restrictions. The payment amount must be set and easy to understand from the face of the instrument by being either a set amount or for an interest rate with a formula that is easy to calculate and cannot be payable in something that isn't money, such as shares of stock or barrels of oil. Finally, it must be clear who the payor or the payee is. The payor is the person or organization that distributes funds and the payee is the person or organization that receives the funds. This person or organization can be named in a check, draft, or promissory note. If payee information is missing, then the payment is payable to the bearer, which is whoever presents the instrument for payment.