An instrument can qualify as a negotiable instrument even if it includes a clause concerning giving,maintaining,or protecting collateral to secure payment.

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A negotiable instrument can have a collateral clause and still be considered negotiable as long as the clause does not impair the negotiability of the instrument. The collateral clause should be incidental to the primary obligation of the instrument and not make payment conditional upon the surrender of the collateral.

An Instrument Can Qualify as a Negotiable Instrument Even If