Q. Negotiable Instruments (part of Business Credit Principles)

As commerce and trade developed, people moved beyond the reliance on barter to the use of money. Gradually, there was a need to use substitutes for money, such as commercial paper. Commercial paper is a contract for the payment of money. It can serve as a substitute for money payable immediately, such as a check, or it can be used as a means of extending credit. Commercial paper, consisting of notes and drafts, reflects the needs of merchants, traders and importers. These groups were responsible for the development of the negotiable instrument and the eventual creation of a set of rules for settling disputes in the courts they established for that purpose. These instrument’s rules became known as the law of negotiable instruments. 

Gradually, the rules were codified and a uniform negotiable instruments act was passed by every state legislature. When the Uniform Commercial Code was drafted, Article 3 contained the statutory law that governs commercial paper. This Article (as enacted in different states) was in part superseded in 1987 when the U.S. Congress passed the Expedited Funds Availability Act, implemented by Availability Act Regulation CC of the Federal Reserve Board, which effectively superseded prior state laws. Article 3 of the UCC was then rewritten to comply with applicable federal laws and regulations and is now the principal source of law governing negotiable instruments.  

Speakers Bio:
Toni Drake brings over 30 years of oil and gas credit experience to the table. Toni holds a CCE, NACM’s most prestigious designation. After earning her CCE, she went on to attend and excel at NACM’s Graduate School of Credit and Financial Management to further her education in the field of credit. Toni continues to support the credit profession as a speaker and instructor at events like NACM’s annual Credit Congress.

Michael Williams is a graduate of Troy University with a Bachelor of Science in Business Administration.  Out of college, Michael served as a Captain for 7 years in the US Marines Corp, was a Marine pilot, an Aide to 2 commanding Generals, and is a proud Vietnam Veteran. He has served the NACM membership for over twenty years as Vice President of NACM Relations.  A familiar face within the NACM, Michael has partnered with NACM Members of all sizes to introduce creative solutions for third party efficiencies and system integrations. Michael is also a conference speaker, round table expert, and NACM certification curriculum contributor.