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Negotiable Instrument (Noun)

Meaning

An unconditional order or promise to pay an amount of money.

Classification

Nouns denoting communicative processes and contents.

Examples

  • A check is a type of negotiable instrument that allows the holder to receive the specified amount of money at a bank.
  • The company issued a promissory note, a negotiable instrument, promising to repay the loan with interest.
  • A negotiable instrument enables the holder to demand payment from the issuer or drawer.
  • The bank verified the negotiable instrument before honoring the payment to the payee.
  • As a negotiable instrument, a bill of exchange can be freely transferred or assigned to a third party.

Hypernyms

  • Instrument
  • Legal Instrument
  • Official Document

Hyponyms

  • Order Of Payment
  • Bill Of Exchange
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