B. A document that represents the intangible right to payment, for example a check.
Listen to pronunciationNote - This very common term describes a certain kind of financial document or "commercial paper" that entitles someone to payment. The most common example is an ordinary check. The legal definition below describes the elements that make an instrument (document) negotiable.
Legal Definition -
A written instrument that 1) is signed by the maker or drawer, 2) includes an unconditional promise or order to pay a specified sum of money, 3) is payable on demand or at a definite time, and 4) is payable to order or to bearer. --Also termed negotiable paper; negotiable note. Among the various types of negotiable instruments are bills of exchange, promissory notes, bank checks, certificates of deposit, and other negotiable securities.
Black's Law Dictionary® Eighth Edition © 2004
Recent Usage -
As much as 50% of Muslims are expected to invest in Islamic banking in the next 8-10 years, paving the way for greater role for financial tools like Sukook, according to QNB, a leading regional player in the GCC syndications market.
To meet the customer’s complex funding requirements, more innovative products such as the Sukook can be expected in the market in the near future, QNB said in a seminar on ‘Islamic Banking and the Vision of the Islamic Banking Industry in Qatar’.
"It is therefore no surprise that 50% of Muslims are anticipated to invest in Islamic banking in the next 8-10 years," the seminar, presented by QNB Islamic head Musadag El Melik and QNB’s Head of Syndicated Loans Enrico Grino, for the Doha-chapter of the Institute of Chartered Accountants of India.
Sukook is a type of certificate that represents a proportionate interest in tangible assets and revenues and in many ways is similar to asset-backed bonds. It is a negotiable instrument that can be sold and purchased in the primary or secondary market, said QNB, the first one to introduce such an instrument in the region.
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Majority of Muslims seen going for Islamic banking Published: Tuesday, 8 August, 2006, 11:54 AM Doha Time