negotiable instrument
A negotiable instrument, sometimes called an instrument , is 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 of negotiable instruments include bank checks , promissory notes , certificates of deposit , and bills of exchange .
The issuance and transfer of negotiable instruments in the United States are governed by Article 3 of the Uniform Commercial Code , Article 4 of the Uniform Commercial Code , and Article 8 of the Uniform Commercial Code .
[Last reviewed in July of 2023 by the Wex Definitions Team ]
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