Which document is considered a negotiable instrument?

A mortgage note is considered a negotiable instrument because it represents a promise to pay a specified amount of money to the lender under agreed-upon terms. Negotiable instruments must meet certain criteria, including being in writing, signed by the maker, containing an unconditional promise to pay a fixed amount of money, and being payable on demand or at a definite time. Since a mortgage note fulfills these requirements, it can be easily transferred from one party to another, allowing the holder to enforce the promise to pay.

In contrast, a deed of trust serves as collateral for the loan but does not represent a direct promise to pay; rather, it establishes a security interest in the property until the debt is satisfied. A security agreement typically involves personal property and does not meet the conditions of a negotiable instrument because it often includes additional provisions and complexities. Lastly, a lease agreement outlines terms for renting a property and likewise does not represent a promise to pay money but rather the terms of use and occupancy. Therefore, only the mortgage note fits the definition of a negotiable instrument.