New York § 3-112 Terms and Omissions Not Affecting Negotiability

New York Statutes

§ 3-112 — Terms and Omissions Not Affecting Negotiability

New York § 3-112

Law UCCUniform Commercial Code

Part 1Short Title, Form and Interpretation

Art. 3Commercial Paper

This text of New York § 3-112 (Terms and Omissions Not Affecting Negotiability) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 3-112 (2026).

Text

Section 3--112. Terms and Omissions Not Affecting Negotiability.\n  (1) The negotiability of an instrument is not affected by\n       (a) the omission of a statement of any consideration or of the\n           place where the instrument is drawn or payable; or\n       (b) a statement that collateral has been given to secure\n           obligations either on the instrument or otherwise of an\n           obligor on the instrument or that in the case of default on\n           those obligations the holder may realize on or dispose of the\n           collateral; or\n       (c) a promise or power to maintain or protect collateral or to\n           give additional collateral; or\n       (d) a term authorizing a confession of judgment on the instrument\n           if it is not paid when due; or\n  

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Section 3--112. Terms and Omissions Not Affecting Negotiability.\n (1) The negotiability of an instrument is not affected by\n (a) the omission of a statement of any consideration or of the\n place where the instrument is drawn or payable; or\n (b) a statement that collateral has been given to secure\n obligations either on the instrument or otherwise of an\n obligor on the instrument or that in the case of default on\n those obligations the holder may realize on or dispose of the\n collateral; or\n (c) a promise or power to maintain or protect collateral or to\n give additional collateral; or\n (d) a term authorizing a confession of judgment on the instrument\n if it is not paid when due; or\n (e) a term purporting to waive the benefit of any law intended\n for the advantage or protection of any obligor; or\n (f) a term in a draft providing that the payee by indorsing or\n cashing it acknowledges full satisfaction of an obligation of\n the drawer; or\n * (g) a statement in a draft drawn in a set of parts (Section\n 3--801) to the effect that the order is effective only if no\n other part has been honored.\n * NB Effective until June 3, 2026\n * (g) a statement in a draft drawn in a set of parts (Section\n 3--801) to the effect that the order is effective only if no\n other part has been honored; or\n * NB Effective June 3, 2026\n * (h) a term that specifies the law that governs the promise or\n order; or\n * NB Effective June 3, 2026\n * (i) an undertaking to resolve in a specified forum a dispute\n concerning the promise or order.\n * NB Effective June 3, 2026\n (2) Nothing in this section shall validate any term which is otherwise\nillegal.\n