(a)Except as provided in subdivisions (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 is all of the following:
(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.
(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 subdivision (a), except paragraph (1), and otherwise falls within the definition of “check” in subdivision (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 division.
(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 (1) a draft, other than a documentary draft, payable on demand and drawn on a bank, (2) a cashier’s check or teller’s check, or (3) a demand draft. 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 (1) on another bank, or (2) payable at or through a bank.
(i)“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)“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.
(k)“Demand draft” means a writing not signed by a customer that is created by a third party under the purported authority of the customer for the purpose of charging the customer’s account with a bank. A demand draft shall contain the customer’s account number and may contain any or all of the following:
(1)The customer’s printed or typewritten name.
(2)A notation that the customer authorized the draft.
(3)The
statement “No Signature Required” or words to that effect.
A demand draft shall not include a check purportedly drawn by and bearing the signature of a fiduciary, as defined in paragraph (1) of subdivision (a) of Section 3307.
Notes of Decisions
Champlaie v. BAC Home Loans Servicing, LP, 706 F. Supp. 2d 1029 (E.D. Cal. 2009).
· cites it 2× “Plaintiff assumes, without discussion, that the promissory note at issue here is a negotiable instrument as defined by Cal. Comm.Code section 3104. 13 Section 3301 provides that a negotiable instrument may be enforced by “(a) the holder of the instrument, (b) a nonholder in…”
People v. Norwood, 11 U.C.C. Rep. Serv. (West) 118 (Cal. Ct. App. 1972).
· cites it 2× “‘order’ is a direction to pay and must be more than an authorization or request.”
Smith v. CitiMortgage, Inc. (In re Smith), 509 B.R. 260 (Bankr. N.D. Cal. 2014).
· cites it 3× “” Cal. Comm. Code § 3104 (a). For an instrument to be negotiable under California law: (1) it must be made payable to bearer or order at the time it is issued or first comes into possession of a holder; (2) it must be payable on demand or at a definite time; and (3) it must not…”
In Re Flamingo 55, Inc., 378 B.R. 893 (Bankr. D. Nev. 2007).
“Cal. Comm.Code § 3104(a). Article 3 recognizes a right of sub-rogation for parties it labels as “accommodation parties.”
Los Angeles Nat'l Bank v. Bank of Canton, 91 Cal. Daily Op. Serv. 3281 (Cal. Ct. App. 1991).
· cites it 2× “(Com. Code, § 3104, subd. (2)(b).) A draft is an order to pay a sum certain in money, signed by the drawer, payable on demand or at a definite time, and to order or bearer.”
Simi Mgmt. Corp. v. Bank of Am., N.A., 930 F. Supp. 2d 1082 (N.D. Cal. 2013).
“…same bank or branches of the same bank,” it is unclear how BofA would acquire a duty to Plaintiff when issuing one. Cal. Comm.Code § 3104(g).”
In Re Zapanta, 204 B.R. 762 (Bankr. S.D. Cal. 1997).
· cites it 3× “A check that meets the requirements of Cal.Com.Code section 3104(a) is a negotiable instrument.”
Radisson Hotels Int'l, Inc. v. Majestic Towers, Inc., 488 F. Supp. 2d 953 (C.D. Cal. 2007).
“” Cal. Comm.Code § 3104. Second, as stated before, Lee failed to provide any indication in the guaranty that he was signing the document solely in his capacity as trustee.”
Bank of Am. v. Sec. Pac. Nat'l Bank, 10 U.C.C. Rep. Serv. (West) 434 (Cal. Ct. App. 1972).
“A draft is a negotiable instrument drawn by the maker ordering the payor bank to pay the holder, or order, the amount specified (Com. Code, § 3104). The payor bank has no obligation to a holder or endorsee until the draft is accepted by it.”
Champion Home Builders Co. v. Sipes, 219 Cal. App. 3d 1415 (Cal. Ct. App. 1990).
“) The Sipeses assert a writing is required by Civil Code section 955 which provides in pertinent part: “A transfer other than one intended to create a security interest [] of a nonnegotiable instrument which is otherwise negotiable within Division 3 of the Commercial Code but…”
Aetna Cas. & Sur. Co. v. Schmitt, 441 F. Supp. 440 (N.D. Cal. 1977).
“If negotiable, see Cal.Comm.Code § 3104, “purchaser” includes “holder”: “Negotiation is the transfer of an instrument in such form that the transferee becomes a holder.”
— Cal. Commercial Code § 3104(a) — 2 cases
In Re Flamingo 55, Inc., 378 B.R. 893 (Bankr. D. Nev. 2007).
“Cal. Comm.Code § 3104(a). Article 3 recognizes a right of sub-rogation for parties it labels as “accommodation parties.”
In Re Zapanta, 204 B.R. 762 (Bankr. S.D. Cal. 1997).
“A check that meets the requirements of Cal.Com.Code section 3104(a) is a negotiable instrument.”
— Cal. Commercial Code § 3104(c) — 1 case
— Cal. Commercial Code § 3104(g) — 1 case
Simi Mgmt. Corp. v. Bank of Am., N.A., 930 F. Supp. 2d 1082 (N.D. Cal. 2013).
“…same bank or branches of the same bank,” it is unclear how BofA would acquire a duty to Plaintiff when issuing one. Cal. Comm.Code § 3104(g).”
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