1(1) 2Except as provided in subsections (3), (4), and (11), the term “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:43(a) 44Is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
65(b) 66Is payable on demand or at a definite time; and
76(c) 77Does 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:1101. 111An undertaking or power to give, maintain, or protect collateral to secure payment;
1242. 125An authorization or power to the holder to confess judgment or realize on or dispose of collateral; or
1433. 144A waiver of the benefit of any law intended for the advantage or protection of an obligor.
161(2) 162The term “instrument” means a negotiable instrument.
169(3) 170An order that meets all requirements of subsection (1), except paragraph (a), and otherwise falls within the definition of “check” in subsection (6) is a negotiable instrument and a check.
200(4) 201A 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 chapter.
255(5) 256An 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.
300(6) 301The term “check” means a draft, other than a documentary draft, payable on demand and drawn on a bank or 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.”
348(7) 349The term “cashier’s check” means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
374(8) 375The term “teller’s check” means a draft drawn by a bank:386(a) 387On another bank; or
391(b) 392Payable at or through a bank.
398(9) 399The term “traveler’s check” means an instrument that:407(a) 408Is payable on demand;
412(b) 413Is drawn on or payable at or through a bank;
423(c) 424Is designated by the term “traveler’s check” or by a substantially similar term; and
438(d) 439Requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
457(10) 458The term “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.
505(11) 506A warrant of this state is not a negotiable instrument governed by this chapter.
