Ala. Code » Title 7 · Article 3 · Part 1

Ala. Code § 7-3-104

Negotiable Instrument

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Section 7-3-104

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, (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor, (iv) a term that specifies the law that governs the promise or order, or (v) an undertaking to resolve in a specified forum a dispute concerning the promise or order.

(b) “Instrument” means a negotiable instrument.

(c) An order that meets all of the requirements of subsection (a), except subdivision (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.

(Acts 1965, No. 549, p. 811; repealed by Acts 1995, No. 95-668, p. 1381, §1; added by Acts 1995, No. 95-668, p. 1381, §1; Act 2023-492, §1.)

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Notes of Decisions
Cited in 28 cases (4 in the last 5 years), 1981–2025 · leading case: Blasco v. Money Services Center (In Re Blasco)
Sort: Relevance Newest Treatment
Blasco v. Money Services Center (In Re Blasco) (2006) alnb · cites it 8× “Section 7-3-104, which requires a negotiable instrument not to state any other undertaking or instruction by the maker in addition to the payment of money.”
Thomas v. Wells Fargo Bank, N.A. (2012) alacivapp · cites it 4× “See Ala.Code 1975, § 7-3-104. Under § 7-3-301, Ala.”
Foster v. HACIENDA NIRVANA, INC. (2009) ala · cites it 11× “” Official Comment ¶ 3, § 7-3-104, Ala.Code 1975; see, e.g., Morgan v.”
Perry v. Federal National Mortgage Ass'n (2012) alacivapp · cites it 2× “See Ala.Code 1975, § 7-3-104. The parties also do not dispute that EverHome became, at some point, a “holder” of the note.”
Strickland v. Kafko Mfg., Inc. (1987) ala · cites it 3× “Code 1975, § 7-3-104. This check was signed by the maker (the bank), and was payable to order of Kafko.”
Summerlin v. Shellpoint Mortgage Services (2016) alnd · cites it 2× “2011) (citing Ala. Code §§ 7-3-104 (a), 35-10-11 to 35-10-14; Triple J Cattle, 551 So.”
Atlantic Nat. Trust, LLC v. McNamee (2007) ala “NOTES [1] Implicit in the district court's certificate is its determination that the promissory note at issue satisfies each of the requirements detailed in § 7-3-104 and therefore constitutes a "negotiable instrument" as defined in that section.”
Crum v. LaSalle Bank, N.A. (2009) alacivapp · cites it 2× “See Ala.Code 1975, § 7-3-104(a). In sum, the materials submitted by the assignee in support of its summary-judgment motion made a prima facie showing that it had acquired title to the property via its bid at an auction authorized under its power of sale after the borrower had…”
Nelson v. Federal National Mortgage Ass'n (2012) alacivapp · cites it 2× “” See § 7-3-104, Ala.Code 1975. The Nelsons maintain that the following provision in the note requires an undertaking other than the payment of money: “[The mortgage] instrument describes how and under what conditions I may be required to make immediate payment in full of all I…”
Janos Farkas v. Sun Trust Mortgage (2011) ca11 “See Ala.Code 7-3-104(a) (1975) (defining a negotiable instrument); Ala.”
McKerall v. Kaiser (2010) ala · cites it 3× “” We conclude that the note constitutes a negotiable instrument because it meets all the characteristics of negotiable instruments in § 7-3-104(a). The note is “an unconditional promise .”
Reed v. Chase Home Finance, LLC (2012) alsd · cites it 3× “Ala.Code § 7-3-104(a). As used in that chapter, “ ‘[¡Instrument’ means a negotiable instrument.”
Show all 28 citing cases →
— Ala. Code § 7-3-104(1)(d) — 1 case
O'GRADY v. City of Hoover (1987) ala
— Ala. Code § 7-3-104(2)(c) — 1 case
Birmingham Trust National Bank v. Herren (In Re Herren) (1981) alnb
— Ala. Code § 7-3-104(3) — 1 case
White v. Dawson (In Re Dawson) (1984) alnb
— Ala. Code § 7-3-104(a) — 9 cases
Foster v. HACIENDA NIRVANA, INC. (2009) ala “” Official Comment ¶ 3, § 7-3-104, Ala.Code 1975; see, e.g., Morgan v.”
Blasco v. Money Services Center (In Re Blasco) (2006) alnb “Section 7-3-104, which requires a negotiable instrument not to state any other undertaking or instruction by the maker in addition to the payment of money.”
Crum v. LaSalle Bank, N.A. (2009) alacivapp “See Ala.Code 1975, § 7-3-104(a). In sum, the materials submitted by the assignee in support of its summary-judgment motion made a prima facie showing that it had acquired title to the property via its bid at an auction authorized under its power of sale after the borrower had…”
Janos Farkas v. Sun Trust Mortgage (2011) ca11 “See Ala.Code 7-3-104(a) (1975) (defining a negotiable instrument); Ala.”
McKerall v. Kaiser (2010) ala “” We conclude that the note constitutes a negotiable instrument because it meets all the characteristics of negotiable instruments in § 7-3-104(a). The note is “an unconditional promise .”
— Ala. Code § 7-3-104(a)(2) — 1 case
Bennett v. CIT Bank, N.A. (2021) alnd
— Ala. Code § 7-3-104(a)(3) — 2 cases
Thomas v. Wells Fargo Bank, N.A. (2012) alacivapp “See Ala.Code 1975, § 7-3-104. Under § 7-3-301, Ala.”
Nelson v. Federal National Mortgage Ass'n (2012) alacivapp “” See § 7-3-104, Ala.Code 1975. The Nelsons maintain that the following provision in the note requires an undertaking other than the payment of money: “[The mortgage] instrument describes how and under what conditions I may be required to make immediate payment in full of all I…”
— Ala. Code § 7-3-104(a)(l) — 1 case
Blasco v. Money Services Center (In Re Blasco) (2006) alnb “Section 7-3-104, which requires a negotiable instrument not to state any other undertaking or instruction by the maker in addition to the payment of money.”
— Ala. Code § 7-3-104(b) — 3 cases
Reed v. Chase Home Finance, LLC (2012) alsd “Ala.Code § 7-3-104(a). As used in that chapter, “ ‘[¡Instrument’ means a negotiable instrument.”
Brooks ex rel. Vickers v. First Federal Savings & Loan Ass'n of Sylacauga (1998) ala
Brooks v. FIRST FEDERAL SAV. & LOAN ASS'N (1998) ala
— Ala. Code § 7-3-104(d) — 1 case
Foster v. HACIENDA NIRVANA, INC. (2009) ala “” Official Comment ¶ 3, § 7-3-104, Ala.Code 1975; see, e.g., Morgan v.”
— Ala. Code § 7-3-104(f) — 2 cases
Blasco v. Money Services Center (In Re Blasco) (2006) alnb “Section 7-3-104, which requires a negotiable instrument not to state any other undertaking or instruction by the maker in addition to the payment of money.”
John Svensen v. Jeff Hester (Appeal from Lauderdale Circuit Court: CV-20-900339). (2024) ala
— Ala. Code § 7-3-104(l)(b) — 1 case
Willson v. MLA, Inc. (In Re Ascot Mortgage, Inc.) (1993) ganb
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.