Mortgage Resources

Company Info

Negotiable Instrument

 

A negotiable instrument is a written unconditional promise or order to pay a certain amount of money at a definite time or on demand.  A promissory note is a negotiable instrument.  It is written promise or order to pay money (ie. a California home loan).  The most common type of negotiable instrument is an ordinary bank check.  A check is an order to the bank to pay money to the person named.  A promissory note for a California home loan is the same thing.  It can transferred by endorsement, just  like a check.  If correctly prepared, it is considered the same as cash.

 

In order to be considered a negotiable instrument, however, the document much be considered with statutory definition and all of the following must be present.

 

A Negotiable Instrument Must Be:

 

·         Signed by the maker or drawer

·         An unconditional promise or order to pay a certain amount in money

·         Payable on demand or at a definite time
payable to order or bearer

 

Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538

ssp

 

Contact Us