Running Head: NEGOTIABLE INSTRUMENTS 1

Negotiable Instruments
Name
Institution
ate
NEGOTIABLE INSTRUMENTS !
State la"s go#ern negotiable instruments and states $a#e ado%ted t$e U&& 'odes t$at
$a#e modi(i'ations) a''ording to t$e U&&* negotiable instruments are "ritings t$at are
un'onditioned and are used in %romising or ma+ing orders o( %a,ments t$at are to be made- Most
business transa'tions are allo"ed to use dra(ts* notes* and 'erti(i'ate o( de%osit "$en (inan'ing
t$e mo#ement o( goods in order to se'ure and distribute loans ./e+os* 10001- An instrument $as
to meet re2uirements t$at are stated in arti'le 3* on t$e ot$er $and* negotiable instruments does
not in'lude mone,* %a,ment orders t$at are go#erned b, arti'le 4A* or (rom se'urities t$at are
go#erned b, arti'le 5 t$at deals "it$ in#estment se'urities-
T$ere are #arious insured a''ounts obligations t$at re2uires 'redit union t$at $a#e
e#iden'e su'$ as negotiable 'erti(i'ate a''ount* dra(ts o( negotiable* negotiable 'erti(ied '$e'+*
or negotiable '$e'+ (or tra#elers- An o"ner $a#ing an, o( t$e abo#e a''ounts obligations "ill be
re'ogni6ed (or an, 'laim %ur%oses (or an a''ount t$at is insured to t$e same e7tent .Nara,an*
!8801- T$is seem as i( t$e name and interest $a#e been dis'losed on t$e 'redit union9s re'ords
t$at %ro#ides t$e instrument (or t$e negotiation on be$al( o( t$e o"ner %rior to t$e date o( 'losing
t$e 'redit union- In all t$e 'ases* t$ere must be t$e o((ering o( a((irmati#e %roo( o( t$e
negotiation t$at "ill be used in substantiating t$e 'laim .Bis"as* !8131-
NEGOTIABLE INSTRUMENTS 3
Re(eren'es
Bis"as* L- &- .!8131- Traditional legal principle has been bent to facilitate the operation of
negotiable instruments such as letter of credit or bill of exchange: A response to the well-
known myth- Ro'$ester: So'ial S'ien'e Resear'$ Net"or+-
doi:$tt%:::d7-doi-org:18-!130:ssrn-!!;34;;
Nara,an* <- .!8801- Assessing corporate criminial liability through section 141 of the negotiable
instruments act in india- Ro'$ester: So'ial S'ien'e Resear'$ Net"or+-
doi:$tt%:::d7-doi-org:18-!130:ssrn-1453808
/e+os* G- I- .10001- T$e 'ontra'tual role o( straig$t .non=negotiable1 bills o( lading under US*
englis$ and gree+ la"- Managerial Law 41.11* 1=!3-