N.Y. Uniform Commercial Code 3-112 – Terms and Omissions Not Affecting Negotiability
Section 3–112. Terms and Omissions Not Affecting Negotiability.
Terms Used In N.Y. Uniform Commercial Code 3-112
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- order: is a direction to pay and must be more than an
authorization or request. See N.Y. Uniform Commercial Code 3-102 - promise: is a n undertaking to pay and must be more than an
acknowledgment of an obligation. See N.Y. Uniform Commercial Code 3-102
(1) The negotiability of an instrument is not affected by
(a) the omission of a statement of any consideration or of the
place where the instrument is drawn or payable; or
(b) a statement that collateral has been given to secure
obligations either on the instrument or otherwise of an
obligor on the instrument or that in the case of default on
those obligations the holder may realize on or dispose of the
collateral; or
(c) a promise or power to maintain or protect collateral or to
give additional collateral; or
(d) a term authorizing a confession of judgment on the instrument
if it is not paid when due; or
(e) a term purporting to waive the benefit of any law intended
for the advantage or protection of any obligor; or
(f) a term in a draft providing that the payee by indorsing or
cashing it acknowledges full satisfaction of an obligation of
the drawer; or
(g) a statement in a draft drawn in a set of parts (Section
3–801) to the effect that the order is effective only if no
other part has been honored.
(2) Nothing in this section shall validate any term which is otherwise illegal.