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Instruments
Practical Law Glossary Item 7-382-3548 (Approx. 2 pages)
Glossary
Instruments
Defined in the UCC as a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment. The term does not include:
- Writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.
An instrument is an asset type over which an entity can grant a security interest under Article 9 of the UCC. For more information on taking a security interest over instruments, see Practice Note, UCC Creation, Perfection, and Priority of Security Interests.