Legal Definitions - order instrument

An order instrument is a written or printed document that can be negotiated or transferred to another person. It can be a negotiable document or instrument that represents a debt, such as commercial documents or negotiable instruments.

Examples of order instruments include:

• Bearer paper: An instrument that is payable to the person who holds it, rather than to a specific person. It can be negotiated by simply delivering the instrument to a transferee.
• Order paper: An instrument that is payable to a specific payee or to any person that the payee designates.
• Commercial paper: An instrument, other than cash, for the payment of money. It can exist in the form of a draft or a note and is governed by Article 3 of the UCC.

These examples illustrate the definition of order instruments because they are all written or printed documents that can be transferred or negotiated to another person. They represent a debt or payment of money and can be used in commercial transactions.