State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-03 > 70a-3-104

70A-3-104. Negotiable instrument.
(1) Except as provided in Subsections (3) and (4), "negotiable instrument" means anunconditional promise or order to pay a fixed amount of money, with or without interest or othercharges described in the promise or order, if it:
(a) is payable to bearer or to order at the time it is issued or first comes into possession ofa holder;
(b) is payable on demand or at a definite time; and
(c) does not state any other undertaking or instruction by the person promising or orderingpayment 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 disposeof collateral; or
(iii) a waiver of the benefit of any law intended for the advantage or protection of anobligor.
(2) "Instrument" means a negotiable instrument.
(3) An order that meets all of the requirements of Subsection (1), except Subsection(1)(a), and otherwise falls within the definition of "check" in Subsection (6) is a negotiableinstrument and a check.
(4) A promise or order other than a check is not an instrument if, at the time it is issued orfirst 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 thischapter.
(5) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If aninstrument falls within the definition of both "note" and "draft," a person entitled to enforce theinstrument may treat it as either.
(6) (a) "Check" means:
(i) a draft, other than a documentary draft, payable on demand and drawn on a bank;
(ii) a cashier's check or teller's check; or
(iii) a demand draft.
(b) An instrument may be a check even though it is described on its face by another term,such as "money order."
(7) "Cashier's check" means a draft with respect to which the drawer and drawee are thesame bank or branches of the same bank.
(8) "Teller's check" means a draft drawn by a bank either on another bank, or payable ator through a bank.
(9) "Traveler's check" means an instrument that:
(a) is payable on demand;
(b) is drawn on or payable at or through a bank;
(c) is designated by the term "traveler's check" or by a substantially similar term; and
(d) requires, as a condition to payment, a countersignature by a person whose specimensignature appears on the instrument.
(10) "Certificate of deposit" means an instrument containing an acknowledgment by abank that a sum of money has been received by the bank and a promise by the bank to repay thesum of money. A certificate of deposit is a note of the bank.
(11) (a) "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 thecustomer's account with a bank.
(b) A demand draft:
(i) shall contain the customer's account number;
(ii) may contain any or all of the following:
(A) the customer's printed or typewritten name;
(B) a notation that the customer authorized the draft; or
(C) the statement "No Signature Required" or words to that effect; and
(iii) may not include a check purportedly drawn by and bearing the signature of afiduciary, as defined in Section 70A-3-307.

Amended by Chapter 60, 1998 General Session