Is a line of credit an Article 3 instrument?
A line of credit is not an Article 3 instrument or a negotiable instrument as defined by the Article of the Uniform Commercial Code (UCC). Accoding to the UCC, a negotiable instrument is a written document presented for payment from one person to another. As a loan, a line of credit does not meet this definition; however, a check used to draw funds from a line of credit would qualify as an Article 3 or negotiable instrument.References:Cornell University: U.C.C.
