8 ‘THE LAW ON NEGOTIABLE INSTRUMENTS See.2 (4) Exchange not applicable to inland or domestic bill. — If the instrument is an inland or domestic bill, that is, both drawn and payable at the same place, there can be no exchange so that a stipulation for payment in exchange may be disregarded. Under R.A. No, 8183, every monetary igation must ransaction shall be settled in any other currency at ime of payment. Sum to be paid with costs of collection or an attorney's fee. ease in amount due effective after maturity. — nit ici by 8 provision not be made at maturity, there to the amount due on the note costs of collection or an attorney's fee. Such a stipulation does not affect the certainty of the amount payable at maturity since the increase in the even if uncertain takes place after maturity ses to be negotiable in the full it has ceased to perform the office of EXAMPLES: (a) M promises to pay P or bearer P10,000 on or before October 4, 2013 “with 15% attorney’s fee and costs of collection if not paid on maturity.” Negotiability is not affected by the clause. (b) A provision “to pay all costs, charges and expenses in- cluding attorney's fee incurred by the payee in any legal pro- ‘ceedings for the collection of the debt” renders the instrument non-negotiable. (Mussenfeld v. Smith [Conn.], 148 Atl. 388.) Here, it cannot be ascertained from the face of the instrument exactly how much money it represents. See.3 NEGOTIABLE INSTRUMENTS IN GENERAL » orm and Interpretation | lity for attorney's fee. — ‘The stipulation for attorney's fees may be reduced by the courts if found unconscionable or unreasonable. If the attorney's fee is not in a reasonable sum. after maturity. — A transfe- .) and consequently, strument subject to defenses, as if it were Sec. 3. When promise is unconditional. — An unqualified order or promise to pay is unconditional within the meaning of this Act though coupled with — (a) An indication of a particular fund out of which reimbursement is to be mad. articular account to be debited with the amount; or (b) A statement of the transaction which gives rise to the instrument. But an order or promise to pay out of a particular fund is not unconditional. When promissory note contains a promise to pay. Negotiable instruments are intended to flow easily through the commercial world. A prospective holder would not be eager to accept an instrument unless its payment can. be reasonably expected under every circumstance, (1) Implied promise to pay. — In ori that a promissory promise to pay. (Sec. the word “promise” should be used. Any words equivalent to a promise or assumption of responsibility for the pay- “M obliges himself to pay,” “ on the face of an instrument