Negotiable Instruments

What is a Negotiable Document?

Definition of Negotiable Instruments: Negotiable instruments are bills of exchange in which the right written on them is strictly tied to the year, therefore, the right can only be claimed with this document and transferred with this document. The negotiable instrument is in the possession of the creditor or the right holder. It shows the debtor’s promise and the creditor’s right. There are important differences from the ordinary promissory notes showing the receivable. in order to understand these differences, it is necessary to know especially the characteristics of the precious document.
Characteristics of Negotiable Instruments:
– The right must be transferable to someone else.
– The right should be evaluated in cash.
– There is a close connection between the right and Decency. The right without a deed cannot be asserted and cannot be transferred.
– The principle of abstraction is in effect. The basic debt relationship that causes the promissory note to be issued cannot be understood from the negotiable instrument.
– The types of negotiable instruments are specified in the law in a limiting number.
– Negotiable documents are subject to strict form requirements.
Transfer Forms of Negotiable Instruments:
Registered Deed: It is a deed on which the name of the first creditor is written and does not contain his registration at his disposal (which gives others the right to transfer not only the deed, and therefore abstractly written in the deed, but the actual receipt that caused the deed to be written). The transfer of these and the results of the transfer are subject to the assignment procedures that you will receive.

Written Deed to Order: It is a deed that has the name of the first creditor of the deed written, but also carries a record to his order (or in some cases this record is considered to exist). The bond, policy and check are considered to have this record. Therefore, if it is not given another form (name or bearer), it is considered as a written deed to the order by law. The order can be transferred by written promissory notes, endorsement and delivery.

Bearer Written Bonds: Whoever is the bearer (bearer, possessor, owner) is the deed to which he will be considered the rightful owner. Therefore, there is no special form for transfer in such promissory notes. It is enough for the bearer to hand over the ticker in his hand to the person he wants to transfer the receipt to. The bond and policy are not written to the bearer, but the check can be written to the bearer.

Types of Negotiable Instruments:
4.1. Bills of Exchange: Bills of exchange are negotiable instruments containing the receipt of money. The debtor of the exchange promissory note undertakes to pay the bearer the amount written on the promissory note. Bonds, policies and cheques have been accepted as exchange notes. Exchange notes have some features.

The characteristics of bills of exchange are as follows:
– Includes a receivable right.
– It has an international character.
– It is the constituent nature of a debt relationship.
– The principle of independence of signatures and declarations applies.
– Presentation of the deed is required for paying.
– It must comply with the necessary shape conditions.
– They are written promissory notes to the order.
– Those who sign the deed are in the position of a fiduciary debtor, even if they have signed it in the capacity of a guarantor.

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