§ 25-3-104. Negotiable instrument. - North Carolina Statutes

§ 25‑3‑104. Negotiable instrument.

(a)        Except as providedin subsections (c) and (d) of this section, "negotiable instrument"means an unconditional promise or order to pay a fixed amount of money, with orwithout interest or other charges described in the promise or order, if it:

(1)        Is payable to beareror to order at the time it is issued or first comes into possession of aholder;

(2)        Is payable on demandor at a definite time; and

(3)        Does not state anyother undertaking or instruction by the person promising or ordering payment todo any act in addition to the payment of money, but the promise or order maycontain (i) an undertaking or power to give, maintain, or protect collateral tosecure payment, (ii) an authorization or power to the holder to confessjudgment or realize on or dispose of collateral, or (iii) a waiver of thebenefit of any law intended for the advantage or protection of an obligor.

(b)        "Instrument"means a negotiable instrument.

(c)        An order that meetsall of the requirements of subsection (a) of this section, except subdivision(1), and otherwise falls within the definition of "check" insubsection (f) is a negotiable instrument and a check.

(d)        A promise or orderother than a check is not an instrument if, at the time it is issued or firstcomes into possession of a holder, it contains a conspicuous statement, howeverexpressed, to the effect that the promise or order is not negotiable or is notan instrument governed by this Article.

(e)        An instrument is a"note" if it is a promise and is a "draft" if it is anorder. If an instrument falls within the definition of both "note"and "draft", a person entitled to enforce the instrument may treat itas either.

(f)         "Check"means (i) a draft, other than a documentary draft, payable on demand and drawnon a bank or (ii) a cashier's check or teller's check. An instrument may be acheck even though it is described on its face by another term, such as"money order".

(g)        "Cashier'scheck" means a draft with respect to which the drawer and drawee are thesame bank or branches of the same bank.

(h)        "Teller'scheck" means a draft drawn by a bank (i) on another bank, or (ii) payableat or through a bank.

(i)         "Traveler'scheck" means an instrument that (i) is payable on demand, (ii) is drawn onor 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 whosespecimen signature appears on the instrument.

(j)         "Certificateof deposit" means an instrument containing an acknowledgment by a bankthat a sum of money has been received by the bank and a promise by the bank torepay the sum of money. A certificate of deposit is a note of the bank. (1899,c. 733, ss. 1, 2, 5, 6, 10, 17, 86, 126, 184, 185, 197; 1905, c. 327; Rev., ss.1952, 2151, 2152, 2154, 2155, 2160, 2217, 2276, 2334, 2335, 2341, 2346; C.S.,ss. 2982, 2983, 2986, 2987, 2991, 2998, 3049, 3108, 3166, 3167; 1965, c. 700,s. 1; 1995, c. 232, s. 1.)