Cal. Codes » Commercial Code / DIVISION 3. NEGOTIABLE INSTRUMENTS / CHAPTER 1. General Provisions and Definitions
California Codes

Cal. Commercial Code § 3102 (2026)

General Provisions and Definitions — Negotiable Instruments

✓ leginfo export of Sept. 26, 2026 (applied Oct. 1, 2026)
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(a)This division applies to negotiable instruments. It does not apply to money, to payment orders governed by Division 11 (commencing with Section 11101), or to securities governed by Division 8 (commencing with Section 8101).

(b)If there is conflict between this division and Division 4 (commencing with Section 4101) or Division 9 (commencing with Section 9101), Divisions 4 and 9 govern.

(c)Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this division to the extent of the inconsistency.

Notes of Decisions
Cited in 4 cases, 1969–2018 · leading case: People v. Norwood, 26 Cal. App. 3d 148 (Cal. Ct. App. 1972).
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People v. Norwood, 26 Cal. App. 3d 148 (Cal. Ct. App. 1972). “” (Com. Code, § 3102, subd. (l)(b).) “An instrument which states that it is payable at a bank is not of itself an order or authorization to the bank to pay it unless the bank is the drawee.”
Smith v. CitiMortgage, Inc. (In re Smith), 509 B.R. 260 (Bankr. N.D. Cal. 2014). “Cal. Comm. Code § 3102 . Article 9 governs the sale of most payment rights, including the sale of both negotiable and non-negotiable promissory notes.”
De La Rochelle v. Woodbridge Grp. of Cos. (In re Woodbridge Grp. of Cos.), 593 B.R. 200 (Bankr. D. Del. 2018). “6, § 3-102 (a) ; Cal. Com. Code § 3102 (a) ("This division applies to negotiable instruments.”
1880 Corp. v. Atlas Corp., 1 Cal. App. 3d 326 (Cal. Ct. App. 1969). “It is true that the word “issue” means the first delivery of an instrument to a holder or a remitter (Com. Code, § 3102, subd. (1) (a)), but the provision in the contract refers to issuance and sale.”
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