An instrument is not negotiable unless it is "payable to order or to bearer" at the time it is issued or first comes into the possession of a holder.

Question

Quizplus · Accepted Answer

For an instrument to be considered negotiable, it must be payable either to order or to bearer upon its issuance or when it first comes into possession of a holder, as per the requirements outlined in the Uniform Commercial Code (UCC). This characteristic allows the instrument to be easily transferred and ensures its negotiability.

An Instrument Is Not Negotiable Unless It Is "Payable to Order