negotiability. The capability of commercial paper to have its title transferred by indorsement and delivery, or by delivery alone, so that the transferee has a rightful claim on it. • Negotiability (which pertains to commercial paper) differs from assignability (which pertains to contracts in general) because an assignee traditionally takes title subject to all equities, and an assignment is not complete without notice to the debtor, whereas an indorsee takes free of all equities and without any notice to the debtor. [Cases: Bills and Notes 144–175. C.J.S. Bills and Notes; Letters of Credit §§ 3–4, 127–138, 143, 148, 155, 159.]

[Blacks Law 8th]