If a note or draft contains a conspicuous statement that the promise or order is not negotiable,it is not a negotiable instrument even if it meets the test for negotiability.

Question

Quizplus · Accepted Answer

A promise or order other than a check is not a negotiable instrument if at the time it is issued or first comes into the possession of a holder it contains a conspicuous statement that the promise or order is not negotiable or is not an instrument governed by Article 3 of the UCC.

If a Note or Draft Contains a Conspicuous Statement That