Non-negotiable Instrument Definition In Banking
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FAQ
Non-negotiable adjective (NOT DISCUSSED) The terms of this agreement are non-negotiable.
Contracts, deeds, and certain types of promissory notes are non-negotiable instruments.
Examples of negotiable instruments include bank checks, promissory notes, certificates of deposit, and bills of exchange.
Non-negotiable securities and products are those that cannot be transferred from one party to the next. An example of a non-negotiable instrument, also referred to as a non-marketable instrument, would be a government savings bond.
An instrument to be negotiable must conform to the following requirements: (1) 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 ...