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This document discusses ways to determine if an instrument is payable on demand or not. An instrument is payable on demand if it can be paid immediately upon presentation. If no time for payment is specified, it is presumed payable on demand. An instrument is not payable on demand if it states payment on a specified date or within a definite period of time. Some instruments include acceleration or extension clauses that affect the payment date.

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Xin Zhao
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117 views1 page

Nego PDF

This document discusses ways to determine if an instrument is payable on demand or not. An instrument is payable on demand if it can be paid immediately upon presentation. If no time for payment is specified, it is presumed payable on demand. An instrument is not payable on demand if it states payment on a specified date or within a definite period of time. Some instruments include acceleration or extension clauses that affect the payment date.

Uploaded by

Xin Zhao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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20191145854

Michael Velmonte

Ways in determining whether the instrument is


payable on demand or not

Payment On Demand
: An instrument is payable on demand, at sight, or upon presentment if
it is subject to payment immediately upon being presented to
the payor or drawee.

If the is no time for payment is specified, a negotiable instrument


is presumed to be payable on demand.

Not payable on demand or Payment in Definite time: If it states that it is


payable on a specified date, within a definite period of time, on a date
or at the time the promise or order is made.

Acceleration Clause: Permits a payee or other holder of a time


instrument to demand payment of the entire amount or balance
due, with interest, if a certain event occurs, such as default in the
payment of an installment when due.

Extension clause: It is a time instrument that permits the date to be


extended

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