In This Chapter
• Defining negotiable instruments
• The requirements that make an instrument negotiable
• How to negotiate bearer and order instruments
• Negotiation problems
• Negotiation warranties
• What is a holder in due course?
The rules governing negotiable instruments streamline the flow of monetary obligations between entities and individuals. This chapter will define negotiable instruments and then provide an overview of how those instruments are transferred and the common problems that arise.
Negotiable Instruments Defined
The Uniform Commercial Code (UCC) defines a negotiable instrument as an unconditional promise or order to pay a fixed amount of money if …
• It is payable to bearer or order.
• It is ...