negotiable instrument – formal document signed by the maker or drawer; with a promise or order to pay, on demand or at a certain time, an amount of money, to order or to bearer

     This page is continued from Legal Instruments:

***********************

negotiable instrument:
(18c)

1. A written instrument that

(1) is signed by the maker or drawer,
(2) includes an unconditional promise or order to pay a specified sum of money,
(3) is payable on demand or at a definite time, and
(4) is payable to order or to bearer. UCC § 3-104(a).  * 

Among the various types of negotiable instruments are bills of exchange, promissory notes, bank checks, certificates of deposit, and other negotiable securities. — aka negotiable paper; negotiable note. [1]

Literally, an instrument having the transferable quality known as negotiability.  An instrument, constituting a valid contract, for the payment of money in a certain, definite sum, to order or bearer, on demand, at sight, or in a certain time, or on the happening of an event which must occur, and payable absolutely, not on a contingency. 11 Am 12d B & N § 56.

An instrument in writing signed by the maker or drawer; containing an unconditional promise or order to pay a sum certain in money; payable on demand, or at a fixed or determinable future time; payable to order or to bearer; and where addressed to a drawee, the latter is named or otherwise indicated with reasonable certainty. Uniform Negotiable Instruments Law § 1; Anno: 44 ALR2d 57, § 11.

An instrument signed by the maker or drawer; containing an unconditional promise or order to pay a sum certain in money and no other promise, order, obligation, or power given by the maker or drawer except as authorized by statute; payable on demand or at a definite time; and payable to order or to bearer. UCC § 3-104(1).

A bill of exchange, draft, check, promissory note, certificate of deposit, bearer bond, or other instrument to which there is extended the quality of negotiability by the Uniform Commercial Code or other statute. 11 Am J2d B & N § 6. [2]

1. Under the Uniform Commercial Code, a signed writing that orders or promises payment of money if: it is unconditional, it is in a fixed amount, it is payable on demand to bearer or to order or at a definite time, and it “does not state any undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money.” (EXAMPLES: a check; a money order; a certificate of deposit; a bond; a note, a bill of lading; a warehouse receipt.)  Negotiable instruments are also referred to as commercial paper or negotiable paper. [3]

     Excerpt from Thomas E. Holland’s The Elements of Jurisprudence (13th ed. 1924):

     “What are called ‘negotiable instruments,’ or ‘paper to bearer,’ such as bills of exchange, or promissory notes, do really pass from hand to hand, either by delivery or indorsement, giving to each successive recipient a right against the debtor, to which no notice to the debtor is essential, and which, if the paper is held bona fide and for value, is unaffected by flaws in the title of intermediate assignors. [4]

     Excerpt from James J. White & Robert S. Summers’ Uniform Commercial Code (4th ed. 1995):

     “One must first understand that a negotiable instrument is a peculiar animal and that many animals calling for the payment of money and others loosely called ‘commercial paper’ are not negotiable instruments and not subject to the rules of Article 3. [5]

Related Terms:

negotiable – capable of being transferred by delivery or indorsement when the transferee takes the instrument for value, in good faith, and without notice of conflicting title claims or defenses.  The four methods of transfer include indorsement, assignment, delivery, and

transfer – negotiation of an instrument according to the forms of law: the four methods of transfer are by indorsement, by delivery, by assignment, and by operation of law.

 

  • indorsement – the signing of one’s name on the back of a negotiable instrument, to transfer title to the paper to another person, usually to guarantee payment.

 

  • assignment – the transfer of property or right in property, or the instrument of such transfer.

 

maker – one who obligates himself by entering into a contract, executing (signing) a promissory note, drawing a bill of exchange, or, in the case of lawmakers, framing, promulgating, or ordaining.

  • accommodation maker – the drawer of a bill, or the maker of a note as a surety, to which he has put his name for the purpose of accommodating, by a loan of his credit, some other person who is to provide for the bill or note when it falls due.
  • prime maker the person who is primarily liable on a note or other negotiable instrument.

bill of exchange – an unconditional written order (often a check) signed by the drawer directing the drawee or payor, to pay a sum of money, on demand or at a definite time, to a third person (either the payee or the bearer).— aka draft; draught; letter of exchange.

  • drawer – someone who directs a person or entity, usually a bank, to pay a sum of money stated in a draft or bill of exchange (i.e. a person who writes a check). UCC § 3-103(a)(5)
  • drawee – the person upon whom a draft or bill of exchange is drawn; the person to whom the paper is presented for acceptance and payment (the drawee of a check is always a bank).

suretyship – a contractual relation, resulting from a primary, original, absolute, and unconditional engagement, whereby one person, the surety, engages to be answerable for the debt, default, or miscarriage of another, the principal.

  • surety – a person who promises to pay the debt or to satisfy the obligation of another person (the principal); as opposed to the obligation of the guarantor, the obligation of a surety is both primary and absolute; that is, not depending upon a default by the principal.
  • principal – the person for whose debt or default a surety is responsible under a contract of suretyship.

presentment – the formal production of a negotiable instrument as a demand for acceptance or payment made on the maker, acceptor, drawee, or other payor by or on behalf of the holder.

  • presentment for acceptance – production of a negotiable instrument, to the drawee, acceptor, or maker, for his acceptance and agreement to pay the bill, usually at some time in the future.
  • presentment for payment –  production of a negotiable instrument, by the holder, to the drawee, acceptor, or maker, on or after the date the instrument matures, to demand payment.

References:

Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition
 by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

[4]: Thomas E. Holland, The Elements of Jurisprudence 315-16 (13th ed. 1924).

[5]: James J. White & Robert S. Summers, 2 Uniform Commercial Code 5 16-1, at 70 (4th ed. 1995).

 

******************************************

Back to Legal Instruments

Like this website?

Please Support Our Fundraiser

or donate via PayPal:

  • please set some widgets to show from Appearance -> Widgets.

Disclaimer: Wild Willpower does not condone the actions of Maximilian Robespierre, however the above quote is excellent!

This website is being broadcast for First Amendment purposes courtesy of

Questions?  Suggestion(s)?
[email protected].
We look forward to hearing from you!

Disclaimer and Terms of Service

Last updated: March 12, 2018

     Read these Terms of Use (“Terms”, “Terms of Use”) carefully before using the https://reunitethestates.org website (the “Service”) operated by Wild Willpower (“us”, “we”, or “our”).

     Your access to and use of the Service is conditioned on your acceptance of and compliance with these Terms. These Terms apply to all visitors, users and others who access or use the Service.

     By accessing or using the Service you agree to be bound by these Terms. If you disagree with any part of the terms then you may not access the Service.

Service

      This webpage constitutes a grassroots attempt to make the justice system more accessible for the average civilian. Information throughout this page does not constitute legal advice, nor should it be construed a replacement thereof. The information contained on this website is for informational purposes only.  Some information may be incorrect or out of date.  The author assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness. We make no representation or warranty with respect to the information on this site. This webpage is being broadcast for First Amendment purposes, and represents a good-faith attempt to assist fellow civilians in finding justice for when they cannot find help from an attorney or from government agencies.  Our use of all content is being used explicitly for noncommercial purposes, and is protected in accord with Fair Use laws. To help us improve the website, or to point out somewhere it may need fixed or amended, email [email protected].  By continuing to read this website, you are thereby using our Service, within the scope and understanding as defined here.

Changes

     We reserve the right, at our sole discretion, to modify or replace these Terms at any time.  What constitutes a material change will be determined at our sole discretion.

     By continuing to access or use our Service after those revisions become effective, you agree to be bound by the revised terms. If you do not agree to the new terms, yet continue to use our Service, you agree that Wild Willpower PAC nor its officers may be held liable for any actions taken or misunderstandings on your part; do not use this website as your sole source of law-related information.

Accounts

     When you create an account with us, you must provide us information that is accurate, complete, and current at all times. Failure to do so constitutes a breach of the Terms, which may result in immediate termination of your account on our Service.

     You are responsible for safeguarding the password that you use to access the Service and for any activities or actions under your password, whether your password is with our Service or a third-party service.

     You agree not to disclose your password to any third party. You must notify us immediately upon becoming aware of any breach of security or unauthorized use of your account.

Intellectual Property

     The  Service and its original content, features and functionality (the layout and manner in which information is arranged) are and will remain the exclusive property of Wild Willpower and its licensors, and may be sold or transferred at any time.

Limitation of Liability

     Wild Willpower PAC is committed to providing high-quality products and services to our users. However, we understand that unforeseen circumstances may arise, and we want to ensure that our users are aware of the limitations of our liability.

    In no event shall Wild Willpower PAC or its affiliates, directors, officers, employees, agents, or suppliers be liable for any direct, indirect, punitive, incidental, special, or consequential damages arising out of or in any way connected with the use of our products or services, including but not limited to damages for loss of profits, use, data, or other intangible losses.

     Our liability is limited to the extent permitted by law, and in no event shall it exceed the amount paid by the user for the product or service in question. This limitation of liability applies regardless of the legal theory upon which the claim is based, whether in contract, tort, negligence, strict liability, or otherwise, even if we have been advised of the possibility of such damages.

    By using our products or services, you acknowledge and agree to this limitation of liability. If you do not agree with this limitation, your only remedy is to discontinue the use of our products and services.

Limitation of Damages

    Wild Willpower PAC values its users and strives to provide the best possible products and services. However, in the event of unforeseen circumstances, we want to make sure our users are aware of the limitations of our liability.

    In no event shall Wild Willpower PAC or its affiliates, directors, officers, employees, agents, or suppliers be liable for any direct, indirect, incidental, consequential, special, or exemplary damages arising out of or in any way connected with the use of our products or services, even if we have been advised of the possibility of such damages.

     Our liability is limited to the extent permitted by law and shall not exceed the total amount paid by the users for the product or service in question. This limitation of damages applies whether the claim is based on breach of contract, breach of warranty, tort (including negligence), or any other legal theory.

    In no event shall Wild Willpower PAC be liable for any damages arising from the use of third-party products or services, including but not limited to those provided by our partners or affiliates.

    By using our products or services, you acknowledge and agree to this limitation of damages. If you do not agree with this limitation, your only remedy is to discontinue the use of our products and services.

    This limitation of damages statement is intended to be enforceable to the fullest extent permitted by applicable law, and if any portion of this limitation is deemed invalid or unenforceable, the remainder of the limitation shall remain in full force and effect.

Forum

     This agreement shall be governed by and construed in accordance with the laws of the State of Iowa and the United States of America. Any legal action or proceeding arising out of or related to this agreement shall be brought exclusively in federal or state courts located in Iowa, and each party irrevocably consents to the jurisdiction of such courts for the purpose of any such action or proceeding.

Links To Other Web Sites

     Our Service may contain links to third-party web sites or services that are not owned or controlled by Wild Willpower.

     Wild Willpower has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that Wild Willpower shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services available on or through any such web sites or services.

     We strongly advise you to read the terms and conditions and privacy policies of any third-party web sites or services that you visit.

Termination

     We may terminate or suspend your account immediately, without prior notice or liability, for any reason whatsoever, including without limitation if you breach the Terms.

     Upon termination, your right to use the Service will immediately cease. If you wish to terminate your account, you may simply discontinue using the Service.

     All provisions of the Terms which by their nature should survive termination shall survive termination, including, without limitation, ownership provisions, warranty disclaimers, indemnity and limitations of liability.

Disclaimer

     Your use of the Service is at your sole risk. The Service is provided on an “AS IS” and “AS AVAILABLE” basis. The Service is provided without warranties of any kind, whether express or implied, including, but not limited to, implied warranties of merchantability, fitness for a particular purpose, non-infringement or course of performance.

Governing Law

     These Terms shall be governed and construed in accordance with the laws of United States and the State of Iowa.

     Our failure to enforce any right or provision of these Terms will not be considered a waiver of those rights.  These Terms constitute the entire agreement between us regarding our Service, and supersede and replace any prior agreements we might have between us regarding the Service.

Severability

   If any portion of this Disclaimer and/or Terms of Use are deemed unenforceable, that shall not affect any other part of this Agreement. The unenforceable or illegal portion will be deemed deleted, and the Terms remaining shall remain valid and enforceable.

Contact Us

    If you have any questions about these Terms, please contact us: [email protected].