Is a cash loan between two people a negotiable instrument?
No, a cash loan is not a negotiable instrument. A negotiable instrument is a piece of paper (check, money order, etc) that one can take to the bank and trade for cash. You may be thinking of a promissory note. When a cash loan is made, the parties should execute a promissary note outlining when the loan was made, how much the loan was, and the terms of repayment. When a check is given to someone as a loan, a notation can also be made on the check that the money is given for a loan. Ideally, a promissory note will also be executed.
