No Protest - NP


DEFINITION of 'No Protest - NP'

When a bank receives instructions from another bank not to protest items in the event that a negotiable instrument is not paid or accepted. The collecting bank is not liable for nonpayment or non-acceptance when attempting to obtain payment according to the payment terms of the draft instrument.


When instructing a collecting bank to not protest items for nonpayment the sending bank will stamp "NP" on the draft. The collecting bank is allowed to send items stamped with NP back to the sending bank in the event of nonpayment.

  1. Depositary Receipt

    A negotiable financial instrument issued by a bank to represent ...
  2. Instrument

    1) A tradeable asset or negotiable item such as a security, commodity, ...
  3. Bank Endorsement

    An endorsement by a bank for a negotiable instrument, such as ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Negotiable

    1. Describing the price of a good or security that is not firmly ...
  6. Credit Union

    Member-owned financial co-operative. These institutions are created ...
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