Friday, January 31, 2014
To Make An Indorser Liable On His Indorsement
The instrument must be commercial paper;
For the indorsement of a bond or single bill will not, per se, create a responsibility.
COMMERCIAL PAPER defined: Bills of exchange (i.e., drafts), promissory notes, bank-checks, and other negotiable instruments for the payment of money, which, by their form and on their face, purport to be such instruments. Short-term, unsecured promissory notes, generally issued by large, well-known corporations and finance companies. U.C.C. Article 3 is the general law governing commercial paper. See also Bearer instrument; Instrument; Negotiable instruments; Note; Trade acceptance. Securities law. Commercial paper is a "security" under the Glass-Steagall Act and therefore is subject to its proscriptions on commercial banks marketing "stocks, bonds, debentures, notes, or other securities." Securities Industry Association v. Board of Governors of the Federal Reserve System et aI., 468 U.S. 137, 104 S.Ct. 2979, 92 L.Ed.2d 107. Black’s Law Dictionary Sixth Edition (page 271)
COMMERCIAL USE defined: Term implies use in connection with or for furtherance of a profit-making enterprise. Roberts Enterprises, Inc. v. Secretary of Transp., 237 Kan. 276, 699 P.2d 479, 483. Black’s Law Dictionary Sixth Edition (page 271)
Posted by John MacHaffie at 4:51:00 PM