${site.data.firmName} ${site.data.firmName}
Free Consultation No recovery - No Fee
215-822-7575 / 800-358-9367
Practice Areas

Financial fraud can involve negotiable instruments

Cases of financial fraud in Pennsylvania can often involve documents known as negotiable instruments. According to the FBI’s most recent “Financial Crimes Report to the Public,” which covers the period from October 2009 to September 2011, the agency has been involved in a number of financial institution fraud cases, which can include investigations into counterfeit negotiable instruments as well as check kiting, check fraud and mortgage fraud. Those who are being investigated for such offenses may want to educate themselves on the legal definition of these types of documents.

The Cornell University’s Legal Information Institute explains that negotiable instruments are, under the definition of the Uniform Commercial Code, writings that deal with the promise or order to pay a set amount of money. These writings are a common part of business and personal finance transactions. 

According to the LII, the defining characteristic of negotiable instruments is the suspension of the rule of derivative title. In general, this rule prevents the transfer of property rights if those rights are greater than those held by the transferor. This rule applies in most legal situations as a protective measure. Because it is suspended for negotiable instruments, UCC Article 3 protects the parties involved in these transactions through the provision of warranties.

Negotiable instruments fall under two general categories: notes and drafts. Promises to make a payment are called notes. These can include certificates of deposits. Orders to make a payment are called drafts. Perhaps the most commonly known example of a draft is a personal or business check.

Negotiable instruments are a common part of financial transactions, but it is important to note that not all financial documents fall under this category. Fund transfers and investment securities, for example, are not considered negotiable instruments. 

No Comments

Leave a comment
Comment Information
Gregory R. Gifford
  • RGS&G Firm News

    "Matthew Taylor Wilkov, Esquire, Graduates from U.S. Army War College"
    LANSDALE – Gregory Gifford, managing partner of Rubin, Glickman, Steinberg and Gifford, P.C. says the firm is honored to have a U.S. Army War College graduate among its ranks.Read more...

  • Super Lawyers | Rising Stars
  • National board of legal speciality certification
  • American college of trial lawyers
  • National board of trial advocacy | EST 1977
  • 2013 | Subarbanlife | Awesome Attorneys
  • PennSuburban | Chamber of commerce

Rubin, Glickman, Steinberg and Gifford has been a member of the local Penn Suburban Chamber of Commerce (previously known as North Penn Suburban Chamber of Commerce) for more than 25 years.

You Have Questions? We Have Answers. Fill out the form and an attorney will be in touch with you shortly.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

start now. send your request