Negotiable paper

Negotiable \Ne*go"ti*a*ble\ (? or ?), a. [Cf. F. n['e]gotiable.
   See {Negotiate}.]
   Capable of being negotiated; transferable by assignment or
   indorsement to another person; as, a negotiable note or bill
   of exchange.
   [1913 Webster]

   {Negotiable paper}, any commercial paper transferable by sale
      or delivery and indorsement, as bills of exchange, drafts,
      checks, and promissory notes.
      [1913 Webster]
    

NEGOTIABLE PAPER, contracts. This term is applied to bills of exchange and 
promissory notes, which are assignable by indorsement or delivery. 
     2. The statute of 3 & 4 Anne (the principles of which have been 
generally adopted in this country, either formally, or in effect,) made 
promissory notes payable to a person, or to his order, or bearer, negotiable 
like inland bills, according to the custom of merchants. 
     3. This negotiable quality transfers the debt from the party to whom it 
was originally owing, to the holder, when the instrument is properly 
indorsed, so as to enable the latter to sue in his own name, both the maker 
of a promissory note, or the acceptor of a bill of exchange, and the other 
parties to such instruments, such as the drawer of a bill, and the indorser 
of a bill or note, unless the holder has been guilty of laches in giving the 
required notice of non-acceptance or non-payment. But in order to make paper 
negotiable, it is essential that it be payable in money only, at all events, 
and not out of a particular fund. 1 Cowen, 691; 6 Cowen, 108; 2 Whart. 233; 
1 Bibb, 490, 503; 1 Ham. 272; 3 J. J. Marsh, 174, 542; 3 Halst. 262; 4 
Blackf. 47; 6 J. J. Marsh, 170; 4 Mont. 124. See 1 W. C. C. R. 512; 1 Miles, 
294; 6 Munf. 3; 10 S. & R. 94; 4 Watts, 400; 4 Whart. R. 252; 9 John. 120; 
19 John. 144; 11 Vern. 268; 21 Pick. 140. Vide Promissory note. Vide 3 Kent. 
Com. Lecture 44; Com. Dig. Merchant, F 15, 16; 2 Hill, R. 59; 13 East, 509; 
3 B. & C. 47; 7 Bing. 284; 5 T. R. 683; 7 Taunt. 265, 278; 3 Burr. 1516 6 
Cowen, 151. 
     4. To render a bill or note negotiable, it must be payable to order, or 
to bearer. When it is payable "to A B only," it cannot be negotiated so as 
to give the indorsee a claim against any one but his indorser. Dougl. 615. 
An indorsement to A B, without adding "or order," is not restrictive to A B 
alone, he may, therefore, assign it to another; Str. 557; or he may indorse 
it in blank, when any attempt, afterwards, to restrain its negotiability 
will be unavailing. Esp. N. P. Cas. 180; 1 Bl. Rep. 295. Vide Blank 
Indorsement; Indorsement.