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Negotiable
Instrument:
A written order to pay, such as an ACCEPTANCE, CHECK, BILL
OF EXCHANGE, or
PROMISSORY NOTE.
Under Article 3 of the
UNIFORM COMMERCIAL
CODE, an instrument is negotiable if it is: (1) a written
instrument signed by the endorser or maker; (2) an unconditional promise to pay
a certain amount of money, either on demand or at a future date; and (3) payable
to the holder or bearer.
A person who becomes a holder in due course of a
negotiable instrument by delivery, or by delivery and endorsement, has an
unrestricted claim to the instrument.
The
Scam: The swindler will persuade you to either assign him a POWER
OF ATTORNEY over your negotiable instrument, or persuade
you to sign the instrument over to him (endorse
the instrument). In
either case, the swindler promises you that he will
invest the funds for you at a huge percentage of return.
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