What is Negotiable Document?
Definition of Negotiable Documents: Negotiable documents are the bills on which the written right is strictly bound to the promissory note, therefore the right can only be demanded and transferred with this document. Valuable documents are in the hands of the creditor or the right holder. It shows the promise of the debtor and the right of the creditor. It has important differences from ordinary promissory notes showing receivables. In order to understand these differences, it is necessary to know the properties of valuable documents.
Properties of Negotiable Documents:
– The right must be transferable to another person.
– The right should be evaluated in cash.
– There is a close connection between the right and the deed. The right without a deed cannot be claimed and transferred.
– The principle of abstraction is in effect. The basic debt relationship that caused the issuance of the bill cannot be understood from the negotiable documents.
– Valuable paper types are specified in a limited number of laws.
– Negotiable documents are subject to strict format requirements.
Transfer Forms of Negotiable Documents:
Registered Promissory Note: It is a deed on which the name of the first creditor is written and does not include its registration in his order (which gives others the right to transfer not only the deed and therefore the receivable written in the deed abstractly, but also the actual receivable that caused the deed to be written). Their transfer and the results of the transfer are subject to the assignment procedures.
Deed with Emre Written: It is the deed that bears the name of the first creditor of the deed, but also carries a record to his order (or in some cases, this record is assumed). In bills, policies and checks, this record is deemed to exist. Therefore, if it is not given any other form (name or bearer), it is legally accepted as a promissory note. Promissory notes can be transferred by endorsement and delivery.
Bearer Bills: It is the deed that the bearer (carrying, possessing, holding) is deemed to be the rightful owner. Therefore, there is no special form for transfer in such bills. It is sufficient for the bearer to deliver the bill in his hand to the person to whom he wishes to transfer the receivable. Bills and policies are not written to the bearer, but can be written to the check bearer.
Negotiable Document Types:
4.1. Bills of Exchange: Bills of exchange are valuable documents containing money receivables. The debtor of the bill of exchange undertakes to pay the bearer the amount written on the bill of exchange. Bills, bills of exchange and checks are accepted as bills of exchange. Bills of exchange have some characteristics.
The features of bills of exchange are as follows:
– Includes a right to claim.
– It has an international character.
– It is in the nature of establishing a debt relationship.
– The principle of independence of signatures and statements applies.
– Submission of the deed is required for payment.
– It must comply with the required form conditions.
– They are promissory notes.
– Even if they signed the bill as a guarantor, they are in the position of several debtors.