§ 6A-3-104 - Negotiable instrument.
SECTION 6A-3-104
§ 6A-3-104 Negotiable instrument. –(a) Except as provided in subsections (c) and (d), "negotiable instrument"means an unconditional promise or order to pay a fixed amount of money, with orwithout interest or other charges described in the promise or order, if it:
(1) Is payable to bearer or to order at the time it is issuedor first comes into possession of a holder;
(2) Is payable on demand or at a definite time; and
(3) Does not state any other undertaking or instruction bythe person promising or ordering payment to do any act in addition to thepayment of money, but the promise or order may contain (i) an undertaking orpower to give, maintain, or protect collateral to secure payment, (ii) anauthorization or power to the holder to confess judgment or realize on ordispose of collateral, or (iii) a waiver of the benefit of any law intended forthe advantage or protection of an obligor.
(b) "Instrument" means a negotiable instrument.
(c) An order that meets all of the requirements of subsection(a), except paragraph (1), and otherwise falls within the definition of "check"in subsection (f) is a negotiable instrument and a check.
(d) A promise or order other than a check is not aninstrument if, at the time it is issued or first comes into possession of aholder, it contains a conspicuous statement, however expressed, to the effectthat the promise or order is not negotiable or is not an instrument governed bythis chapter.
(e) An instrument is a "note" if it is a promise and is a"draft" if it is an order. If an instrument falls within the definition of both"note" and "draft," a person entitled to enforce the instrument may treat it aseither.
(f) "Check" means (i) a draft, other than a documentarydraft, payable on demand and drawn on a bank or (ii) a cashier's check orteller's check. An instrument may be a check even though it is described on itsface by another term, such as "money order."
(g) "Cashier's check" means a draft with respect to which thedrawer and drawee are the same bank or branches of the same bank.
(h) "Teller's check" means a draft drawn by a bank (i) onanother bank, or (ii) payable at or through a bank.
(i) "Traveler's check" means an instrument that (i) ispayable on demand, (ii) is drawn on or payable at or through a bank, (iii) isdesignated by the term "traveler's check" or by a substantially similar term,and (iv) requires, as a condition to payment, a countersignature by a personwhose specimen signature appears on the instrument.
(j) "Certificate of deposit" means an instrument containingan acknowledgment by a bank that a sum of money has been received by the bankand a promise by the bank to repay the sum of money. A certificate of depositis a note of the bank.