Vermont § 104 - § 3—104.

§ 104. § 3—104.

• Negotiable instrument (a) Except as provided in subsections (c) and (d) of this 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: (1) is payable to bearer or to order at the time it is issued or first comes into possession
  of a holder; (2) is payable on demand or at a definite time; and (3) 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 (i) an undertaking or power to give, maintain, or protect collateral to
  secure payment, (ii) an authorization or power to the holder to confess judgment or
  realize on or dispose of collateral, (iii) a waiver of the benefit of any law intended
  for the advantage or protection of an obligor, (iv) a term that specifies the law
  that governs the promise or order, or (v) an undertaking to resolve in a specified
  forum a dispute concerning the promise or order. (b) “Instrument” means a negotiable instrument. (c) An order that meets all of the requirements of subsection (a) of this section, except
  paragraph (1), and otherwise falls within the definition of “check” in subsection
  (f) of this section is a negotiable instrument and a check. (d) 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. (e) 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. (f) “Check” means (i) a draft, other than a documentary draft, payable on demand and drawn
  on a bank; (ii) a cashier’s check or teller’s check; or (iii) a demand draft. An instrument
  may be a check even though it is described on its face by another term, such as “money
  order.” (g) “Cashier’s check” means a draft with respect to which the drawer and drawee are the
  same bank or branches of the same bank. (h) “Teller’s check” means a draft drawn by a bank (i) on another bank, or (ii) payable
  at or through a bank. (i) “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. (j) “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. (k) “Demand draft” means a writing not signed by a customer that is created by a third
  party under the purported authority of the customer for the purpose of charging the
  customer’s account with a bank. A demand draft shall contain the customer’s account
  number and may contain any or all of the following: (i) the customer’s printed or
  typewritten name; (ii) a notation that the customer authorized the draft; and (iii)
  the statement “No Signature Required” or words to that effect. A demand draft shall
  not include a check purportedly drawn by and bearing the signature of a fiduciary,
  as defined in section 3—307(a)(1) of this title. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995; amended 2003, No. 87 (Adj. Sess.), §§ 1, 2; 2025, No. 17, § 4, eff. July 1, 2025.)