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Negotiable Instrument

Negotiable Instrument

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Published by melvin_baniel

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Categories:Types, Business/Law
Published by: melvin_baniel on Jan 27, 2011
Copyright:Attribution Non-commercial


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This web page contains the full text of Act No. 2031February 03, 1911THE NEGOTIABLE INSTRUMENTS LAW
Form of negotiable instruments. -
Aninstrument to be negotiable must conform to the followingrequirements:(a) It must be in writing and signed by the maker ordrawer;
(b) Must contain an unconditional promise or order topay a sum certain in money;
(c) Must be payable on demand, or at a fixed ordeterminable future time;
(d) Must be payable to order or to bearer; and
(e) Where the instrument is addressed to a drawee,he must be named or otherwise indicated therein withreasonable certainty.Sec. 2.
What constitutes certainty as to sum.
- The sumpayable is a sum certain within the meaning of this Act,although it is to be paid:(a) with interest; or
(b) by stated installments; or
(c) by stated installments, with a provision that, upondefault in payment of any installment or of interest,the whole shall become due; or
(d) with exchange, whether at a fixed rate or at thecurrent rate; or
(e) with costs of collection or an attorney's fee, incase payment shall not be made at maturity.Sec. 3.
When promise is unconditional. -
An unqualifiedorder or promise to pay is unconditional within themeaning of this Act though coupled with:(a) An indication of a particular fund out of whichreimbursement is to be made or a particular accountto be debited with the amount; or
(b) A statement of the transaction which gives rise tothe instrument.But an order or promise to pay out of a particular fund isnot unconditional.chan robles virtual law library Sec. 4.
Determinable future time; what constitutes.
- Aninstrument is payable at a determinable future time,within the meaning of this Act, which is expressed to bepayable:(a) At a fixed period after date or sight; or
(b) On or before a fixed or determinable future timespecified therein; or
(c) On or at a fixed period after the occurrence of aspecified event which is certain to happen, thoughthe time of happening be uncertain.An instrument payable upon a contingency is notnegotiable, and the happening of the event does not curethe defect.

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