LAW 3220 Lecture Notes - Lecture 13: Promissory Note, Credit Score, Security Interest
Document Summary
Negotiable instruments come under the ucc: non negotiable instruments do not (cid:1) They can substitute as cash, like a check, or provide a way to. Types of negotiable instruments: orders to pay. You are ordering that bank to pay some body. A check is a subset of a draft. Aka a draft: takes 2 parties to make a draft, promise to pay. The bank is promising to pay you an interest rate (cid:1) (cid:1) (cid:1: to transfer a bearer check it just needs to be delivered. Payable to order of: delivered to a third party. Requirements for holders in due course: transferee must have value of the instrument, must be taken without knowledge it was taken, has to take it in food faith, know difference between holder and holder in due course. Check: draft drawn from bank that is payable on demand, bank pay, gives you money right then and there, cashiers check.
