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Key Terms I

Learn how Article 3 describes the parties to a negotiable instrument as well as the definitions of possession, delivery, issue, and remitter.


Article 3 features many technical terms and phrases of art with specialized meanings. We’ll explore several of these terms in this and the next several lessons.

I. Parties

Let’s start by defining the parties to a negotiable instrument.

A. Parties to a Note

A note generally has two parties: the maker and the payee. Let’s say that a law student borrows money from a lender to pay her tuition. If the law student executes a promissory note, the law student is the maker of the note, and the lender is...