Negotiable Documents

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)

All 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).

Negotiable documents is a term employed to designate all paper that may be negotiated, whether a negotiable instrument or not.

The principal negotiable instruments in the United States are checks, bills of exchange, promissory notes, and acceptances.

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