400.3-104. Negotiable instruments.

MISSOURI STATUTES AND CODES

400.3-104. Negotiable instruments.

Negotiable instruments.

400.3-104. (a) Except as provided in subsections (c) and (d),"negotiable instrument" means an unconditional promise or order to pay afixed amount of money, with or without interest or other charges describedin the promise or order, if it:

(1) is payable to bearer or to order at the time it is issued orfirst 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 personpromising or ordering payment to do any act in addition to the payment ofmoney, but the promise or order may contain (i) an undertaking or power togive, maintain, or protect collateral to secure payment, (ii) anauthorization or power to the holder to confess judgment or realize on ordispose of collateral, or (iii) a waiver of the benefit of any law intendedfor 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, atthe time it is issued or first comes into possession of a holder, itcontains a conspicuous statement, however expressed, to the effect that thepromise or order is not negotiable or is not an instrument governed by thisArticle.

(e) An instrument is a "note" if it is a promise and is a "draft" ifit is an order. If an instrument falls within the definition of both"note" and "draft," a person entitled to enforce the instrument may treatit 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'scheck. An instrument may be a check even though it is described on itsface by another term, such as "money order."

(g) "Cashier's check" means a draft with respect to which the drawerand drawee are the same bank or branches of the same bank.

(h) "Teller's check" means a draft drawn by a bank (i) on anotherbank, or (ii) payable at or through a bank.

(i) "Traveler's check" means an instrument that (i) is payable ondemand, (ii) is drawn on or payable at or through a bank, (iii) isdesignated by the term "traveler's check" or by a substantially similarterm, and (iv) requires, as a condition to payment, a countersignature by aperson whose specimen signature appears on the instrument.

(j) "Certificate of deposit" means an instrument containing anacknowledgement by a bank that a sum of money has been received by the bankand a promise by the bank to repay the sum of money. A certificate ofdeposit is a note of the bank.

(k) "Demand draft", a writing not signed by the customer that iscreated by a third party under the purported authority of the customer forthe purpose of charging the customer's account with a bank. A demand draftshall contain the customer's account number and may contain any or all ofthe following:

a. The customer's printed or typewritten name;

b. A notation that the customer authorized the draft; or

c. The statement "No signature required" or words to that effect.

A demand draft shall not include a check purportedly drawn by and bearingthe signature of a fiduciary, as defined in paragraph (1) of subsection (a)of section 400.3.-307.