forms NEGOTIABLE INSTRUMENTS and other paper that is negotiable by mere
delivery (e.g., bearer checks, drafts, or notes; bearer bonds or bond
coupons) or by delivery and endorsement (e.g., order checks, drafts, or
notes; order bills of lading). Technically,
a negotiable instrument is one that calls for payment of money.
Since bills of lading and warehouse receipts call for delivery
of merchandise they cannot be considered negotiable instruments in the
technical sense, but still they may be negotiated if made order documents.
The doctrine of "bona fide purchaser" in the case of securities
is analogous to that of holder in due course in the case of negotiable
instruments, in that when a purchaser for value, in good faith, and without
notice of any adverse claim takes delivery of a security in bearer form
or in registered form issued to him or endorsed to him in blank, he acquires
the security free of any adverse claim in addition to acquiring the rights
of a purchaser (Secs. 8-301(a) and 8-302, Uniform Commercial Code).
documents is a term employed to designate all paper that may be negotiated,
whether a negotiable instrument or not.
principal negotiable instruments in the