SEC.

1 Form of
Negotiable
Instruments

NEGOTIABLE INSTRUMENTS LAW

F. AMPIL

1. MUST BE IN
WRITING &
SIGNED BY
MAKER OR
DRAWER

ATTY.
SEC. 10 TERMS,
SEC. 4 DETERMINABLE
WHEN SUFFICIENT
FUTURE TIME
SEC. 14 BLANKS,
WHEN MAY BE FILLED

SEC. 17
CONSTRUCTION OF
SEC. 7 WHEN
PAYABLE
AMBIGUITIES
ON DEMAND

SEC. 18 PERSONS
SEC. 8 PAYABLE
LIABLETO
ON AN
ORDER
INSTRUMENT

SEC. 22 EFFECT OF
INDORSEMENT BY
CORPORATIONS/
MINORS
2. MUST CONTAIN
AN
UNCONDITIONAL
PROMISE OR
ORDER TO PAY A
SUM CERTAIN IN
MONEY

SEC. 23 FORGED
SIGNATURE
SEC. 9 PAYABLE TO
SEC. 2 CERTAINTY OF
BEARER
SUM PAYABLE

SEC. 3 UNCONDITIONAL
PROMISE / ORDER TO PAY

SEC. 6 ALLOWABLE OMISSIONS

A. AT A FIXED PERIOD AFTER DATE OR SIGHT

SEC. 11 PRESUMPTION AS TO DATE

1. NOT DATED
2. VALUE GIVEN NOT
SPECIFIED
SEC.24
B. 15
ON OR
BEFORE A UNDELIVERED
FIXED OR DETERMINABLE FUTURE TIME
SPECIFIED
THEREIN
SEC.
INCOMPLETE
SEC. 12 ANTE-DATED & POST-DATED
3. DOES NOT SPECIFY
PLACE
DRAWN
OR
C. ON OR AT A FIXED PERIOD AFTER THE OCCURRENCE OF A SPECIFIED EVENT WHICH
IS 16
CERTAIN
TO HAPPEN,
THOUGH THE TIME OF HAPPENINGPAYABLE
BE UNCERTAIN
SEC.
COMPLETE
UNDELIVERED
SEC. 13 WHEN DATE MAY BE INSERTED
4. BEARS A SEAL
AN INSTRUMENT PAYABLE UPON CONTINGENCY IS NOT5.
NEGOTIABLE,
DESIGNATESAND THE
HAPPENING OF THE EVENT DOES NOT CURE THE DEFECT.PARTICULAR KIND OF
SEC. 125
SEC. 124
CURRENT MONEY IN
1. SUM PAYABLE WORDS PREVAIL, THEN FIGURES
DELIBERATE
EFFECTS OF
WHICH
PAYMENT
2. INTEREST
A. WHERE W/O
IT ISDATE
EXPRESSED
AS TO STARTTO BE PAYABLE
DATE OF ON DEMAND, OR
AT SIGHT,
OR ONIS TO
INSERTION OF
MATERIAL
BE MADE
INSTRUMENT;
PRESENTATION,
THEN
OR DATE OF ISSUE
WRONG DATE IS
ALTERATION
3. NO DATE DATED AS TO TIME WAS ISSUED
MATERIAL
4. WRITTEN
B. IN WHICH
OVER
NO PRINTED
TIME FOR PAYMENT IS EXPRESSED
ALTERATION
5. BILL OR NOTE HOLDER MAY ELECT
6. SIGNATURE
WHERE AN INSTRUMENT
NOT CLEAR INISWHAT
ISSUED,
CAPACITY
ACCEPTED OR INDORSED WHEN OVERDUE, IT IS,
AS REGARDS
AS INDORSER
THE PERSON SO ISSUING, ACCEPTING OR INDORSING IT, PAYABLE ON
3 EXCEPTIONS TO GENERAL RULE
7. IDEMAND.
PROMISE TO PAY SIGNED BY 2 OR MORE
SEC. 20 AGENT IS NOT
JOINTLY & SEVERALLY LIABLE [SOLIDARY]
SEC.18 [2] TRADE NAME OR ASSUMED NAME
PERSONALLY LIABLE IF HE
INSTRUMENT IS PAYABLE TO ORDER WHERE IT IS DRAWN PAYABLE TO THE ORDER OF A SPECIFIED PERSON
SIGNED, BUT MUST BE
OR RULE:
TO HIMONLY
OR TO
HIS ORDER. IT MAY BE DRAWN PAYABLE TO THE ORDER OF:
GENERAL
PERSONS
DULY AUTHORIZED AND
SEC.19 DULY AUTHORIZED AGENT
WHOSE SIGNATURE APPEAR ON
MUST DISCLOSE
A.
A
PAYEE
WHO
IS
NOT
MAKER,
DRAWER
OR
DRAWEE
INSTRUMENT ARE LIABLE THEREON
PRINCIPAL
B. THE DRAWER OR MAKER
C. THE DRAWEE
THE INDORSEMENT
OR ASSIGNMENT OF
SEC. 23 FORGER IS LIABLE EVEN IF HIS
D. TWO OR MORE
PAYEES JOINTLY
THE INSTRUMENT
BY A CORPORATION
OR
OWN SIGNATURE DOES NOT APPEAR
ONE OR
MORETHE
OF SEVERAL
PAYEES
SEC. 21 SIGNATURE BY
BY AN E.
INFANT
PASSES
PROPERTY
F. THE
HOLDER OF AN OFFICE
FOR THE TIME BEING
PROCURATION IS LIMITED
THEREIN,
NOTWITHSTANDING
THAT FROM
AUTHORITY TO SIGN,
WANT OF CAPACITY, THE CORP/INFANT MAY WHEN A SIGNATURE IS FORGED OR MADE W/O AUTHORITY OF
THE INSTRUMENT
TO ORDER,
PAYEE
MUST BE NAMED
OR OTHERWISE
PERSONTHE
WHOSE
SIGNATURE
IT PURPORTS
TO BE, IT INDICATED
IS
PRINCIPAL IS BOUND
INCURWHERE
NO LIABILITY
THEREON. IS PAYABLE THE
THEREIN WITH REASONABLE CERTAINTY.
WHOLLY INOPERATIVE AND NO RIGHT TO RETAIN THE
ONLY IF AGENT ACTED
INSTRUMENT, OR TO GIVE A DISCHARGE THEREFOR OR TO
W/IN AUTHORITY
ENFORCE PAYMENT THEREOF AGAINST ANY PARTY THERETO
MAY BE THROUGH OR UNDER SUCH SIGNATURE UNLESS THE
1. WITH INTEREST
A. WHEN IT IS EXPRESSED TO BE SO PAYABLE
PARTY AGAINST WHOM IT IS SOUGHT TO ENFORCE SUCH RIGHT
2. BY STATED INSTALLMENTS
IS PRECLUDED
FROM
SETTING UP THE FORGERY OR WANT OF
3. BY STATED
W/ A TO A PERSON NAMED
B. INSTALLMENTS
WHEN IT IS PAYABLE
THEREIN OR
BEARER
AUTHORITY.
PROVISION THAT UPON DEFAULT IN
PAYMENT
ANY IT
INSTALLMENT
ORTHE
OF ORDER OF A FICTIITIOUS OR NON-EXISTING PERSON, AND SUCH FACT WAS
C.OF
WHEN
IS PAYABLE TO
A. AN INDICATION OF A PARTICULAR FUND OUT OF WHICH
INTEREST, THE
WHOLE
BECOME
KNOWN
TOSHALL
THE PERSON
MAKING IT SO PAYABLE
REIMBURSEMENT IS TO BE MADE OR A PARTICULAR ACCOUNT
DUE
TO BE DEBITED WITH THE AMOUNT.
4. WITH EXCHANGE,
WHETHER
AT
A
FIXED
D. WHEN THE NAME OF THE PAYEE DOES NOT PURPORT TO BE THE NAME OF ANY PERSON
RATE OR AT THE CURRENT RATE
B. A STATEMENT OF THE TRANSACTION WHICH GIVES RISE TO
5. W/ COSTSE.OF
COLLECTION
WHEN
THE ONLYOR
ORAN
LAST INDORSEMENT IS AN INDORSEMENT
IN BLANK.
THE INSTRUMENT.
ATTORNEYS FEE, IN CASE PAYMENT
SHALL NOT BE MADE AT MATURITY
BUT AN ORDER OR PROMISE TO PAY OUT OF A PARTICULAR FUND
IS NOT UNCONDITIONAL.

3. MUST BE
PAYABLE ON
DEMAND OR AT A
JenFIXED
Laygo
OR 2D 05
DETERMINABLE
FUTURE TIME

SEC. 5 ADDITIONAL
PROVISIONS THAT DO NOT
AFFECT NEGOTIABILITY

GENERAL RULE: AN INSTRUMENT W/C

CONTAINS AN ORDER/PROMISE TO
DO ANY ACT IN ADDITION TO THE
PAYMENT OF MONEY IS NONNEGOTIABLE
EXCEPTIONS:

A. SALE OF COLLATERAL SECURITIES IN CASE INSTRUMENT IS NOT PAID AT MATURITY

B. AUTHORIZES CONFESSION OF JUDGMENT IF INSTRUMENT NOT PAID AT MATURITY
C. WAIVES BENEFIT OF ANY LAW INTENDED FOR ADVANTAGE OR PROTECTION OF
OBLIGOR
D. 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/STIPULATION
1
OTHERWISE ILLEGAL,