Tex. Bus. & Com. Code Section 3.104
Negotiable Instrument


(a)

Except as provided in Subsections (c) and (d), “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:

(1)

is payable to bearer or to order at the time it is issued or first comes into possession of a holder;

(2)

is payable on demand or at a definite time; and

(3)

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, but the promise or order may contain:

(A)

an undertaking or power to give, maintain, or protect collateral to secure payment;

(B)

an authorization or power to the holder to confess judgment or realize on or dispose of collateral; or

(C)

a waiver of the benefit of any law intended for the advantage or protection of an obligor.

(b)

“Instrument” means a negotiable instrument.

(c)

An order that meets all of the requirements of Subsection (a), except Subdivision (1), and otherwise falls within the definition of “check” in Subsection (f) is a negotiable instrument and a check.

(d)

A promise or order other than a check is not an instrument if, at the time it is issued or first 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 this chapter.

(e)

An instrument is a “note” if it is a promise and is a “draft” if it is an order. If an instrument falls within the definition of both “note” and “draft,” a person entitled to enforce the instrument may treat it as either.

(f)

“Check” means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier’s check or teller’s check. An instrument may be a check even though it is described on its face by another term, such as “money order.”

(g)

“Cashier’s check” means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.

(h)

“Teller’s check” means a draft drawn by a bank:

(1)

on another bank; or

(2)

payable at or through a bank.

(i)

“Traveler’s check” means an instrument that:

(1)

is payable on demand;

(2)

is drawn on or payable at or through a bank;

(3)

is designated by the term “traveler’s check” or by a substantially similar term; and

(4)

requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.

(j)

“Certificate of deposit” means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.

(k)

Repealed by Acts 2007, 80th Leg., R.S., Ch. 427, Sec. 4, eff. September 1, 2007.
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 131, Sec. 2, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 427 (S.B. 1541), Sec. 4, eff. September 1, 2007.

Source: Section 3.104 — Negotiable Instrument, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­3.­htm#3.­104 (accessed Mar. 23, 2024).

3.101
Short Title
3.102
Subject Matter
3.103
Definitions
3.104
Negotiable Instrument
3.105
Issue of Instrument
3.106
Unconditional Promise or Order
3.107
Instrument Payable in Foreign Money
3.108
Payable on Demand or at Definite Time
3.109
Payable to Bearer or to Order
3.110
Identification of Person to Whom Instrument Is Payable
3.111
Place of Payment
3.112
Interest
3.113
Date of Instrument
3.114
Contradictory Terms of Instrument
3.115
Incomplete Instrument
3.116
Joint and Several Liability
3.117
Other Agreements Affecting Instrument
3.118
Statute of Limitations
3.119
Notice of Right to Defend Action
3.201
Negotiation
3.202
Negotiation Subject to Rescission
3.203
Transfer of Instrument
3.204
Indorsement
3.205
Special Indorsement
3.206
Restrictive Indorsement
3.207
Reacquisition
3.301
Person Entitled to Enforce Instrument
3.302
Holder in Due Course
3.303
Value and Consideration
3.304
Overdue Instrument
3.305
Defenses and Claims in Recoupment
3.306
Claims to an Instrument
3.307
Notice of Breach of Fiduciary Duty
3.308
Proof of Signatures and Status as Holder in Due Course
3.309
Enforcement of Lost, Destroyed, or Stolen Instrument
3.310
Effect of Instrument on Obligation for Which Taken
3.311
Accord and Satisfaction by Use of Instrument
3.312
Lost, Destroyed, or Stolen Cashier’s Check, Teller’s Check, or Certified Check
3.401
Signature
3.402
Signature by Representative
3.403
Unauthorized Signature
3.404
Impostors
3.405
Employer’s Responsibility for Fraudulent Indorsement by Employee
3.406
Negligence Contributing to Forged Signature or Alteration of Instrument
3.407
Alteration
3.408
Drawee Not Liable on Unaccepted Draft
3.409
Acceptance of Draft
3.410
Acceptance Varying Draft
3.411
Refusal to Pay Cashier’s Checks, Teller’s Checks, and Certified Checks
3.412
Obligation of Issuer of Note or Cashier’s Check
3.413
Obligation of Acceptor
3.414
Obligation of Drawer
3.415
Obligation of Indorser
3.416
Transfer Warranties
3.417
Presentment Warranties
3.418
Payment or Acceptance by Mistake
3.419
Instruments Signed for Accommodation
3.420
Conversion of Instrument
3.501
Presentment
3.502
Dishonor
3.503
Notice of Dishonor
3.504
Excused Presentment and Notice of Dishonor
3.505
Evidence of Dishonor
3.506
Processing Fee by Holder of Payment Device
3.507
Delivery Notification Fee by Holder of Check or Similar Sight Order
3.601
Discharge and Effect of Discharge
3.602
Payment
3.603
Tender of Payment
3.604
Discharge by Cancellation or Renunciation
3.605
Discharge of Secondary Obligors

Accessed:
Mar. 23, 2024

§ 3.104’s source at texas​.gov