Sociology | Mercantile Law | International Law | International Relations

Negotiable Instrument Terms
Definitions of the Terms used in the Act (Section 3).

Accommodation Party
It means a person who has signed a negotiable instrument as a marker, drawer acceptor or endorser without receiving the value and for the purpose of lending his name to some other person.

Banker
Banker is a person transacting the business of accepting, for the purpose of lending or investment, of or deposits of money from the public, repayable on demand otherwise withdrawable by cheque, draft, order, or otherwise, and includes any Post Office Savings Bank.

Bearer
Bearer is a person who by negotiable comes into possession of a negotiable instrument, which is payable to bearer.

Delivery
It is transfer of possession actual or constructive, from one person to another.

Issue
Means the first delivery of a promissory notice, bill of exchange of cheque complete in form to a person’ who takes it as holder.

Material Alteration
In relation to a Promissory note, bill, of exchange or cheque includes an alteration of the date, the sum payable, the time of payment, the of payment, and, where any such instrument has been accepted generally, the addition of a place of payment without the acceptor’s assent.

Notary Public
It includes any person appointed by the Central Government to perform the functions of notary public under this Act and a notary appointed under the Notaries Ordinance, 1961.