2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 31 - General Provisions and Definitions
3104 - Negotiable instrument.

     § 3104.  Negotiable instrument.
        (a)  Definition of "negotiable instrument".--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)  Definition of "instrument".--"Instrument" means a
     negotiable instrument.
        (c)  Negotiable instrument and check.--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)  When promise or order not an instrument.--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 division.
        (e)  Note and draft.--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)  Definition of "check".--"Check" means:
            (1)  a draft, other than a documentary draft, payable on
        demand and drawn on a bank; or
            (2)  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)  Definition of "cashier's check".--"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)  Definition of "teller's check".--"Teller's check" means
     a draft drawn by a bank:
            (1)  on another bank; or
            (2)  payable at or through a bank.
        (i)  Definition of "traveler's check".--"Traveler's check"
     means an instrument that:
            (1)  is payable on demand;
            (2)  is drawn on or payable at or through a bank;
            (3)  is designated by the term "traveler's check" or by a
        substantially similar term; and
            (4)  requires, as a condition to payment, a
        countersignature by a person whose specimen signature appears
        on the instrument.
        (j)  Definition of "certificate of deposit".--"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.

        Cross References.  Section 3104 is referred to in sections
     2103, 3103, 3106, 3115, 4104, 9102 of this title.