Sec. 42a-3-104. Negotiable instrument. - Connecticut Statutes

      Sec. 42a-3-104. Negotiable instrument. (a) Except as provided in subsections (c) and (d), "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, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor.

      (b) "Instrument" means a negotiable instrument.

      (c) An order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) 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 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".

      (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.

      (1959, P.A. 133, S. 3-104; P.A. 91-304, S. 4.)

      History: P.A. 91-304 substantially revised section and added definitions of "cashier's check", "teller's check" and "traveler's check".

      Annotations to former statutes:

      (1958 Rev., S. 39-1): Law does not recognize a "renewal note". 92 C. 707. A written order for the payment of money to a particular person to be charged to the account of the drawer is not a negotiable instrument. 93 C. 399.

      (1958 Rev., S. 39-2): Negotiable coupon bonds payable to bearer are within the act. 80 C. 60; 82 C. 333. Seal does not affect negotiability. 81 C. 670. A certificate of stock is not a negotiable instrument. 94 C. 607. (2) Provision including taxes in note rendered the sum uncertain and so destroyed negotiability before the 1927 amendment. 104 C. 700; 111 C. 67. Cited. 110 C. 441. Cited. 122 C. 170. Cited. 126 C. 38.

      Subsec. (2): Requirement not met if the promise is to pay a sum plus another indefinite sum. 4 CS 211.

      (1958 Rev., S. 39-127): Request by subcontractor to original contractor to pay certain sum to third person not a negotiable bill of exchange. 86 C. 511; 93 C. 399.

      (1958 Rev., S. 39-186): Check properly delivered, though drawer was to substitute another for it, imports consideration. 83 C. 526. Cited. 110 C. 399. Cited. 122 C. 170. Cited. 128 C. 482.

      Annotations to present section:

      Cited. 149 C. 159; Id., 558. Cited. 156 C. 243. Waiver of defense clause void as attempt to impart negotiability to otherwise nonnegotiable instrument. 158 C. 543. Cited. 203 C. 394. Cited. 210 C. 734. Cited. 221 C. 530.

      Cited. 5 CA 366. Note was a negotiable instrument in accordance with this section. 91 CA 268.

      Cashier's check, in which issuing bank acts as both drawer and drawee, is equivalent to negotiable promissory note payable on demand. 33 CS 641. Cited. 40 CS 287.

      Former Subsec. (1):

      A promissory note remains a simple contract and is enforceable as such even though lacking an element essential for negotiability. 181 C. 207. Cited. 182 C. 530.

      Cited. 36 CS 213.

      Former Subsec. (2):

      Subdiv. (b) cited. 202 C. 277. Subdiv. (c) cited. 205 C. 604.

      Subsec. (a):

      Cited. 230 C. 486.

      Subsec. (b):

      Cited. 230 C. 486.