Georgia § 11-3-104 - Negotiable instrument.

§ 11-3-104. Negotiable instrument.

Except as provided in subsections (c) and (d) of this Code section, "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: Is payable to bearer or to order at the time it is issued or first comes into possession of a holder; Is payable on demand or at a definite time; and Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain: An undertaking or power to give, maintain, or protect collateral to secure payment; An authorization or power to the holder to confess judgment or realize on or dispose of collateral; or A waiver of the benefit of any law intended for the advantage or protection of an obligor. "Instrument" means a negotiable instrument. An order that meets all of the requirements of subsection (a) of this Code section, except paragraph (1) of subsection (a) of this Code section, and otherwise falls within the definition of "check" in subsection (f) of this Code section is a negotiable instrument and a check. A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this article. An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either. "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank; or (ii) a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order." "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank. "Teller's check" means a draft drawn by a bank (i) on another bank; or (ii) payable at or through a bank. "Traveler's check" means an instrument that (i) is payable on demand; (ii) is drawn on or payable at or through a bank; (iii) is designated by the term "traveler's check" or by a substantially similar term; and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument. "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank. (Code 1981, § 11-3-104 , enacted by Ga. L. 1996, p. 1306, § 3.) Code Commission notes. - Pursuant to Code Section 28-9-5, in 1996, semicolons were substituted for commas near the end of subparagraphs (a)(3)(i) and (a)(3)(ii). Law reviews. - For note, "The Law of Evidence in the Uniform Commercial Code," see 1 Ga. L. Rev. 44 (1966). For note analyzing consumer protection in retail installment contracts with reference to waiver of defenses by purchaser and the denial of holder in due course status to assignee of contract, in light of Geiger Fin. Co. v. Graham, 123 Ga. App. 771 , 182 S.E.2d 521 (1971), see 23 Mercer L. Rev. 673 (1972). For note, "Negotiable Promissory Notes Containing Time and Demand Provisions: The Need for Consistent Interpretation," see 19 Ga. L. Rev. 717 (1984). For comment on Geiger Fin. Co. v. Graham, 123 Ga. App. 771 , 182 S.E.2d 521 (1971), see 8 Ga. St. B.J. 400 (1972).