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Can you summarize Tex. Bus. & Com. Section 3.104?
GENERAL PROVISIONS AND DEFINITIONS > NEGOTIABLE INSTRUMENT.
Short Summary
This section of the Texas Statutes, Business and Commerce Code, falls under the Uniform Commercial Code and governs negotiable instruments. A negotiable instrument is an unconditional promise or order to pay a fixed amount of money. It must be payable to bearer or to order, payable on demand or at a definite time, and must not contain any other undertaking or instruction apart from the payment of money. However, it may include provisions for collateral, confession of judgment, or waiver of certain laws. This section also defines various types of negotiable instruments, such as checks, cashier’s checks, teller’s checks, traveler’s checks, and certificates of deposit. It clarifies that an instrument may be considered a check even if it is described differently on its face. The section also provides definitions for terms like note and draft. It further states that an instrument that explicitly states it is not negotiable or not governed by this chapter is not considered an instrument. This section does not specify any penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Holders and issuers of negotiable instruments
What does it govern?
Negotiable instruments
What are exemptions?
Instruments that contain a statement indicating they are not negotiable or not governed by this chapter
What are the Penalties?
No specific penalties mentioned in this section
Jurisdiction
Texas