Commercial Paper Definition

noun

Negotiable instruments, as bills of exchange, used regularly in the course of business.

Webster's New World

Short-term promissory notes issued by large corporations and sold to investors either directly by the issuer or through dealers.

Webster's New World

A negotiable instrument evidencing a debt to be unconditionally paid on demand or at a specified time and payable to order or to the instrument’s bearer; includes such instruments as certificates of deposit, checks, drafts, and notes. The use of commercial paper is generally governed by the Uniform Commercial Code. Also called paper. See also accommodation paper and chattel (chattel paper).

Webster's New World Law