(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.)
Notes of Decisions
Blasco v. Money Servs. Ctr. (In Re Blasco), 352 B.R. 888 (Bankr. N.D. Ala. 2006).
· 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.”
Perry v. Fed. Nat'l Mortg. Ass'n, 100 So. 3d 1090 (Ala. Civ. App. 2012).
· 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., 512 So. 2d 714 (Ala. 1987).
· cites it 3× “Code 1975, § 7-3-104. This check was signed by the maker (the bank), and was payable to order of Kafko.”
Atl. Nat. Trust, LLC v. McNamee, 984 So. 2d 375 (Ala. 2007).
“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., 55 So. 3d 266 (Ala. Civ. App. 2009).
· 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. Fed. Nat'l Mortg. Ass'n, 97 So. 3d 770 (Ala. Civ. App. 2012).
· 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…”
McKerall v. Kaiser, 60 So. 3d 288 (Ala. 2010).
· 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 Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012).
· cites it 3× “Ala.Code § 7-3-104(a). As used in that chapter, “ ‘[¡Instrument’ means a negotiable instrument.”
— Ala. Code § 7-3-104(1)(d) — 1 case
— Ala. Code § 7-3-104(2)(c) — 1 case
— Ala. Code § 7-3-104(3) — 1 case
— Ala. Code § 7-3-104(a) — 9 cases
Blasco v. Money Servs. Ctr. (In Re Blasco), 352 B.R. 888 (Bankr. N.D. Ala. 2006).
“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., 55 So. 3d 266 (Ala. Civ. App. 2009).
“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…”
McKerall v. Kaiser, 60 So. 3d 288 (Ala. 2010).
“” 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
— Ala. Code § 7-3-104(a)(3) — 2 cases
Nelson v. Fed. Nat'l Mortg. Ass'n, 97 So. 3d 770 (Ala. Civ. App. 2012).
“” 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 Servs. Ctr. (In Re Blasco), 352 B.R. 888 (Bankr. N.D. Ala. 2006).
“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 Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012).
“Ala.Code § 7-3-104(a). As used in that chapter, “ ‘[¡Instrument’ means a negotiable instrument.”
— Ala. Code § 7-3-104(d) — 1 case
— Ala. Code § 7-3-104(f) — 2 cases
Blasco v. Money Servs. Ctr. (In Re Blasco), 352 B.R. 888 (Bankr. N.D. Ala. 2006).
“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(l)(b) — 1 case
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