The premise of this paper is that the concept of negotiability of promissory notes, which derives in modem law from Article 3 of the Uniform Commercial Code, is not only useless but positively detrimental to the operation of the modem secondary mortgage market. Therefore, the concept ought to be eliminated from the law of mortgage notes.
This is not a new idea. More than a decade ago, Professor Ronald Mann made the point that negotiability is largely irrelevant in every field of consumer and commercial payment systems, including mortgages. But Mann’s article made no specific recommendations for change, and no change has occurred.