« ‘THE LAW ON NEGOTIABLE INSTRUMENTS see.7 Where an instrument is issued, accepted, or indorsed when overdue, It Is, as regards the person ‘80 Issuing, accepting, or Indorsing It, payable on demand. When instrument payable on demand. Under the first paragraph, an instrument is payable on demand not only as between the immediate parties but also 1s to subsequent parties, On the other hand, the provision of the second paragraph refers only to immediate parties since between immediate parties there is no difference bet- ween a holder in due course and a person not a holder in due course. An instrument payable on demand is due and payable immediately after delivery. It is a present debt due at once. Instruments that are not payable on demand, called “time instruments,” are payable at a definite time. (see Sec. 4.) (1) Expressed to be payable on demand. EXAMPLES: ““[promise to pay to bearer on demand P10,000.” “1 promise to pay P or order P10,000 upon receipt by me cf my share from the estate of X or upon demand.” (Pay vs. ‘Vda, de Palanca, 57 SCRA 618 [1974].) In the second example, P may rely on the wording “upon demand.” (ibid.) Note that it is not payable at a fixed or determinable future time. (see Sec. 4.) Instead of “on demand,” the words “at sight” or “on presentation” or “on call” or “at any time called for,” may be used. The words “on demand” are ordinarily used in promissory notes while the words “at sight,” s of exchange. “At sight” means that the instrument is payable as soon as it is seen by the party primarily liable. An overdue instrument is necessarily a demand paper. A holder has an immediate right of payment for the mo- ney promised or ordered to be paid. ee NEGOTIABLE RS TRUMENTSIN GENERAL 2 (2)'No time for payment is expressed. EXAMPLE: “Pay to P or order P10,000," bmn dnt bas ee dean (3) Payable on demand as regards the maker EXAMPLE: iisuedon Angora (ehent eee eee (4) Payable on demand as regards the acceptor, EXAMPLE: en’ pera "August 20, 2016 is accepted by the (5) Payable on demand as regards the indorser, EXAMPLE: Annote payable “30 days” after August 1,2016 isi ‘on September 1, 2016, Pa sbe ot ‘The indorsement after maturity, in legal efiect, new instrument payable on demand, “ue cetera Sec. 8. When payable to order. — The instrument {s payable to order where it is drawn payable to the order of a specified person or to him or his order. It ‘may be drawn payable to the order of: (a) A payee who is not maker, drawer, or drawee; or t (b) The drawer or maker; or (c) The drawee; or (d) Two or more payees jointly; or