Negotiable instruments, primarily promissory notes, are the primary document used to establish the obligation to pay money. The instruments are also critical tools in structuring international transactions. In the context of an international transaction, the goal is to draft the negotiable instrument in such a way as to maximize the enforcement options.

Negotiable instruments can be drafted so that they are valid in both the United States and in Mexico. However, in order to be valid in both jurisdictions, one needs to be aware of certain differences, and take steps to harmonize those differences, so that the laws of both jurisdictions are satisfied.

Drafting an instrument is valid in both the U.S. and Mexico is just the beginning. A negotiable instrument is worthless unless there is someone to pay it. Therefore, before accepting an instrument, one needs to determine if the maker has sufficient assets to collect in the event that a payment is withheld, and if an acceptable court can obtain jurisdiction over that person and his assets.

The existence of collectable assets can be verified through a variety of means. In order to secure the desired jurisdiction, one should consider the use of a forum selection clause, rather than rely on obtaining jurisdiction through a long-arm statute. When all these factors are properly considered and investigated prior to drafting the negotiable instrument, a fully valid, enforceable, and collectible instrument will be the result.