What does UCC Article 3 cover?

Uniform Commercial Code Article 3 governs negotiable instruments: drafts (including checks) and notes representing a promise to pay a sum of money, and that have independent value because they are negotiable.

What are the 3 negotiable instruments?

The Negotiable Instruments (Amendment) Bill, 2017 The bill defines the promissory note, bill of exchange, and cheques.

What section of the UCC defines negotiation of a negotiable instrument and who is a holder?

§ 3-201. NEGOTIATION. (a) “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder.

Which article of the UCC specifically labels commercial paper as a negotiable instrument?

Article 3 of the UCC applies to negotiable instruments, specifically notes and drafts.

How are negotiable instruments used in the UCC?

The UCC and Negotiable Instruments – Part 1 of 2. An overview of a few of the most basic UCC rules for how checks, promissory notes, and other negotiable instruments work. A negotiable instrument is a special piece of paper that can be passed from one person to another and, ultimately, exchanged for money.

Which is a negotiable instrument in the Commercial Code?

Article 3, Negotiable Instruments Uniform Commercial Code Article 3 governs negotiable instruments: drafts (including checks) and notes representing a promise to pay a sum of money, and that have independent value because they are negotiable.

When was the uniform Negotiable Instruments Act passed?

The Uniform Negotiable Instruments Law was approved in 1896, and soon enacted in every state. More commercial laws soon followed: the Uniform Sales Act and Uniform Warehouse Receipts Act in 1906; the Uniform Bills of Lading Act and Uniform Stock Transfer Act in 1909; and the Uniform Conditional Sales Act in 1918.

What makes an order 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.