Negotiable instrument
In general, any financial document that directs payment to its holder or a named party. More specifically, a negotiable instrument must be written, signed by the maker, include an unconditional promise or order to pay a sum of money to the holder or specific party, and be payable any time or on a specific date. Examples include bank checks, promissory notes, certificates of deposit, and bills of exchange.
Definition from Nolo’s Plain-English Law Dictionary
A written document that represents an unconditional promise to pay a specified amount of money upon the demand of its owner. Examples include checks and promissory notes. Negotiable instruments can be transferred from one person to another, as when you write "pay to the order of" on the back of a check and turn it over to someone else.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:20 pm
