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Negotiable Instruments Law (Continue)
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

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 Section 3-106.  Sum Certain.

(1)  The sum payable is a sum certain even though it is to be paid:

(a)     with stated interest or by stated installments; or

(b)     with stated different rates of interest before and after default or a specified date; or

(c)     with a stated discount or addition if paid before or after the date fixed for payment; or

(d)     with exchange or less exchange, whether at a fixed rate or at the current rate; or

(e)     with costs of collection or an attorney's fee or both upon default.

(2)  Nothing in this section shall validate any term which is otherwise illegal.

 Section 3-107.  Money.

(1)  An instrument is payable in money if the medium of exchange in which it is payable is money at the time the instrument is made.  An instrument payable in "currency" or "current funds" is payable in money.

(2)  A promise or order to pay a sum stated in a foreign currency is for a sum certain in money and, unless a different medium of payment is specified in the instrument, may be satisfied by payment of that number of dollars which the stated foreign currency will purchase at the buying sight rate for that currency on the day on which the instrument is payable or, if payable on demand, on the day of demand.  If such an instrument specifies a foreign currency as the medium of payment, the instrument is payable in that currency.

 Section 3-108.  Payable on demand.

(1)  An instrument is payable at a definite time if by its terms it is payable:

(a)     on or before a stated date or at a fixed period after a stated date; or

(b)     at a fixed period after sight; or

(c)     at a definite time subject to any acceleration; or

(a)     at a definite time subject to extension at the option of the holder, or to extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.

(2)  An instrument which by its terms is otherwise payable only upon an act or event uncertain as to time of occurrence is not payable at a definite time even though the act or event has occurred.

 Section 3-110.  Payable to Order.

(1)  An instrument is payable to order when by its terms it is with reasonable certainty, or to him or his order, or when it is conspicuously designed on its face as "exchange" or the like and names a payee.  It may be payable to the order of:

(a)     the maker or drawer; or

(b)     the drawer; or

(c)     a payee who is not maker, drawer or drawee; or

(d)     two or more payees together or in the alternative; or

(e)     an estate, trust or fund, in which case it is payable to the order of the representative of such estate, trust or fund or his successors; or

(f)       an office, or an officer by his title as such in which case it is payable to the principal, but the incumbent of the office or his successors may act as if he or they were the holder; or

(g)     a partnership or unincorporated association, in which case it is payable to the partnership or association and may be indorsed or transferred by any person thereto authorized.

(2)  An instrument not payable to order is not made so payable by such words as "payable upon return of this instrument properly indorse."

(3)  An instrument made payable both to order and to bearer is payable to order unless the bearer words are handwritten or typewritten.

Section 3-111.  Payable to Bearer.

An instrument is payable to bearer when by its terms it is payable to:

(a)     bearer or the order of bearer; or

(b)     a specified person or bearer; or

(c)     "cash" or the order of "cash," or any other indication which does not purport to designate a specific payee.

 Section 3-112.  Terms and Omissions Not Affecting Negotiability.

(1)  The negotiability of an instrument is not affected by:

(a)  the omission of a statement or any consideration or of the place where the instrument is drawn or payable; or

(b)  a statement that collateral has been given to secure obligations either on the instrument or otherwise of an obligor on the instrument or that in case of default on those obligations the holder may realize on or dispose of the collateral; or

(c)  a promise or power to maintain or protect collateral or to give additional collateral; or

(d)  a term authorizing a confession of judgment on the instrument if it is not paid when due; or

(e)  a term purporting to waive the benefit of any law intended for the advantage or protection of any obligor; or

(f)    a term in a draft providing that the payee by indorsing or cashing it acknowledges full satisfaction of an obligation of the drawer; or

(g)   a statement in a draft drawn in a set of parts (Section 3-801) to the effect that the order is effective only if no other part has been honored.

(2)  Nothing in this section shall validate any term which is otherwise illegal. 

 Continue to Section 3-113.  Seal.  


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