Mortgage Notes Are NOT NEGOTIABLE INSTRUMENTS – Foreclosing in a Hurricane
Repeat a lie long enough until it becomes the truth. That’s what’s occurring in the space of negotiable instruments and the Uniform Commercial Code. The bottom line is mortgage notes are NOT negotiable instruments. What is the definition of a negotiable instrument? Well, Florida Statutes gives us a very clear definition:
673.1041 Negotiable instrument.
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:
(a) Is payable to bearer or to order at the time it is issued or first comes into possession of a 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 ordering payment to do any act in addition to the payment of money.
So what is a negotiable instrument? Well, it’s real simple. A check is a negotiable instrument. It is simple, it is clear. It is, as they say,
“A passenger with no baggage.”
What it is not?
Find out here…
And be sure to check out the link at the bottom of Matt’s post, ForeclosinginaHurricane…