Non negotiable account payee only意思

"Non-negotiable account payee only" is a term often seen on checks or bank drafts, indicating the specific purpose and conditions under which the instrument can be cashed or deposited. Here's a breakdown of the term:

1. Non-negotiable: This means that the instrument cannot be transferred or sold to another party and does not have a value that can be traded in the secondary market. It is not a negotiable instrument as defined by the Uniform Commercial Code (UCC), which means it cannot be endorsed and transferred to someone else without the endorsement of the original payee.

2. Account Payee Only: This part of the term specifies that the check or draft is intended for a particular payee and is not to be cashed or deposited by anyone other than the named payee. It is a safeguard to prevent fraud or misuse of the instrument. The account payee is the person whose name is on the check or draft and whose bank account the funds are to be deposited into.

In summary, when a check or bank draft is marked as "non-negotiable account payee only," it means that the instrument is not transferable and can only be deposited or cashed by the person named as the payee on the document. It is not negotiable in the sense that it cannot be sold or traded for value, and it must be used for the specified purpose and by the specified individual.