347
Am37

CONTENTS

TEXT OF THE ACT AS RECOMMENDED BY THE COMMISSIONERS ON UNI-
FORM STATE Laws .

THE NEGOTIABLE INSTRUMENTS LAW

I

James Barr Ames. 30

Lyman D. Brewster 47

James Barr Ames. 61

Lyman D. Brewster 69

James Barr Ames. 83

Lyman D. Brewster 84

TIBBYBA

MAEBOLLA OL

THE NEGOTIABLE INSTRUMENTS LAW.

A GENERAL ACT RELATING TO NEGOTIABLE INSTRU-
MENTS (BEING AN ACT TO ESTABLISH A LAW UNI-
FORM WITH THE LAWS OF OTHER STATES ON THAT
SUBJECT). 1

1

TITLE I.

NEGOTIABLE INSTRUMENTS IN GENERAL.

ARTICLE I.

FORM AND INTERPRETATION.

SECTION 1. Be it enacted, etc., An instrument to be negotiable must conform to the following requirements:

4. It must be in writing and signed by the maker or drawer; 2. Must contain an unconditional promise or order to pay a sum certain in money;

3. Must be payable on demand, or at a fixed or determinable future time;

4. Must be payable to order or to bearer; and,

5. Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.

Sec. 2. The sum payable is a sum certain within the meaning litudes birt of this act, although it is to be paid, —

1. With interest; or

what

3. By stated instalments, with a provision that upon default in payment of any instalment or of interest the whole shall become due; or

4.

With exchange, whether at a fixed rate or at the current
rate; or

5. With costs of collection or an attorney's fee, in case pay-
ment shall not be made at maturity.

1 The Act here given is that recommended by the Committee on Commercial Law of the BOARDS OF COMMISSIONERS FOR PROMOTING UNIFORMITY OF LEGISLATION IN THE UNITED STATES.

Sec. 3. An unqualified order or promise to pay is unconditional
within the meaning of this act, though coupled with -

I. An indication of a particular fund out of which reimburse-
ment is to be made, or a particular account to be debited
with the amount; or

2. A statement of the transaction which gives rise to the in-
strument.

But an order or promise to pay out of a particular fund is not

unconditional.

what Coust

Sec. 4. An instrument is payable at a determinable future time,
within the meaning of this act, which is expressed to be payable,
I. At a fixed period after date or sight; or

2. On or before a fixed or determinable future time specified.
therein; or

3. On or at a fixed period after the occurrence of a specified
event, which is certain to happen, though the time of
happening be uncertain.

An instrument payable upon a contingency is not negotiable,
and the happening of the event does not cure the defect.

Additional √ Sec. 5. An instrument which contains an order or promise to
Provisions do any act in addition to the payment of money is not negotiable.
not affecting But the negotiable character of an instrument otherwise negotiable
negou ablit is not affected by a provision, which

1

1. Authorizes the sale of collateral securities in case the instru

ment be not paid.at maturity; or::.:

2. Authorizes a confession of judgment the instrument be
not paid at maturity.; or

3. Waives the benefit of any law tatended for the advantage
or protection of the obligor; or

4 Gives the holder an election to require something to be done
in lieu of payment of money.

But nothing in this section shall validate any provision or stip-
ulation otherwise illegal.

Sec. 6. The validity and negotiable character of an instrument
are not affected by the fact that

I. It is not dated; or

Seal, Past.

2. Does not specify the value given, or that any value has been

given therefor; or

3. Does not specify the place where it is drawn or the place

where it is payable; or

4. Bears a seal; or

5. Designates a particular kind of current money in which pay

ment is to be made.

But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the consideration

to be stated in the instrument.

Sec. 7. An instrument is payable on demand:

when Pay-on De

I. Where it is expressed to be payable on demand, or at sight,
or on presentation; or

2. In which no time for payment is expressed.
Where an instrument is issued, accepted, or indorsed when
overdue, it is, as regards the person so issuing, accept-
ing, or indorsing it, payable on demand.

When Pay

Sec. 8. The instrument is payable to order where it is drawn payable to the order of a specified person or to him or his order.

It may be drawn payable to the order of

1. A payee who is not maker, drawer, or drawee; or

2. The drawer or maker; or

3. The drawee; or

4. Two or more payees jointly; or

5. One or some of several payees; or

6. The holder of an office for the time being.

Pay. To Orde

to Orderd indonnent by Eatter

4 or B.

Where the instrument is payable to order the payee must be named or otherwise indicated therein with reasonable

certainty. when

Sec. 9. The instrument is payable to bearer —

1. When it is expressed to be so payable; or

2. When it is payable to a person named therein or bearer; or 3. When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person making it so payable; or

4. When the name of the payee does not purport to be the name of any person; or

When the only or last indorsement is an indorsement in

blank.

Serves when
Sufficient

Sec. 10. The instrument need not follow the language of this S act, but any terms are sufficient which clearly indicate an intention to conform to the requirements hereof.

Sec. 11. Where the instrument or an acceptance of any indorse-Date, lesum

ment thereon is dated, such date is deemed prima facie to be the a to Same true date of the making, drawing, acceptance, or indorsement as

the case may be.

Sec. 12. The instrument is not invalid for the reason only that bute dated it is ante-dated or post-dated, provided this is not done for an illegal

or fraudulent purpose. The person to whom an instrument so

Post Dated