NEGOTIABLE INSTRUMENTS 

IN  an attorney's fee, in case payment

GENERAL. shall not be made at maturity.

CHAPTER I. SEC. 3. When promise is

unconditional.—An unqualified
FORM  AND  INTERPRETATION. order or promise to pay is
unconditional within the meaning of
SECTION 1. Form of negotiable this Act, though coupled with—
instrument.—An instrument to be (a) An indication of a
negotiable must conform to the particular fund out of which
following requirements: reimbursement is to be made, or a
(a) It must be in writing and particular account to be debited with
signed by the maker or drawer; the amount; or
(b) Must contain an (b) A statement of the
unconditional promise or order to transaction which gives rise to the
pay a sum certain in money; instrument.
(c) Must be payable on But an order or promise to pay out of
demand, or at a fixed or a particular fund is not unconditional.
determinable future time;
(d) Must be payable to order SEC. 4. Determinable future time;
or to bearer; and what constitutes.—An instrument is
(e) Where the instrument is payable at a determinable future
addressed to a drawee, he must be time, within the meaning of this Act,
named or otherwise indicated therein which is expressed to be payable—
with reasonable certainty. (a) At a fixed period after date
or sight; or
SEC. 2. Certainly as to sum ; what (b) On or before a fixed or
constitutes.—The sum payable determinable future time specified
sum is a sum certain within the therein; or
meaning of this Act, although it is to (c) On or at a fixed period
be paid— after the occurrence of a specified
(a) With interest; or event, which is certain to happen,
(b)  By stated installments^ or though the time of happening be
(c)   By stated installments, uncertain.
with a provision that upon default in An instrument payable upon a
payment of any installment or of contingency is not negotiable, and
interest the whole shall become due; the happening of the event does not
or cure the defect.
(d)   With exchange, whether
at a fixed rate or at the current rate; SEC.   5. Additional provisions not
or affecting negotiability.— An
(e)   With costs of collection or instrument which contains an order
or promise to do any act in f addition requiring in certain cases the nature
to the payment of money is not of the consideration to be stated in
negotiable.   But the negotiable the instrument.
character of an instrument otherwise
negotiable is not affected by a SEC. 7. When payable on demand.
provision which— —An instrument is payable on
(a) Authorizes the sale of demand—
collateral securities in case the (a) Where it is expressed to
instrument be not paid at maturity; or be payable on demand, or at sight,
(b) Authorizes a confession of or on presentation; or
judgment if the instrument be not (b)  In which no time for
paid at maturity; or payment is expressed.
(c)   Waives the benefit of any
law intended for the advantage or Where an instrument is
protection of the obligor; or issued, accepted, or indorsed when
(d)   Gives the holder an overdue, it is, as regards the person
election to require something to be so issuing, accepting, or indorsing it,
done in lieu of payment of money. payable on demand.

But nothing in this section SEC. 8. When payable to order.—

shall validate any provision or The instrument is payable to order
stipulation otherwise illegal. where it is drawn payable to the
order of a specified person or to him
SEC. 6. Omissions; seal; or his order.   It may be drawn
particular money.—The validity and payable to the order of—
negotiable character of an (a)   A payee who is not
instrument are not affected by the maker, drawer, or drawee; or
fact that— (b)   The drawer or maker; or
(a)  It is not dated; or (c)   The drawee; or
(b) Does not specify the value (d)   Two or more payees
given, or that any value has been jointly; or
given therefor; or (e)   One or some of several
(c)   Does not specify the payees; or
place where it is drawn or the place (f)  The holder of an office for
where it is payable; or the time being.
(d)   Bears a seal; or Where the instrument is
(e)   Designates a particular payable to order the payee must be
kind of current money in which named or otherwise indicated therein
payment is to be made. with reasonable certainty.

But nothing in this section SEC. 9. When payable to bearer.—

shall alter or repeal any statute
The instrument is payable to bearer
—
(a) When it is expressed to be SEC. 13.  When date may be
so payable; or inserted.—Where an instrument
(b)  When it is payable to a expressed to be payable at a fixed
person named therein or bearer; or period after date is issued undated,
(c) When it is payable to the or where the acceptance of an
order of a fictitious or person, and instrument payable at a fixed period
such fact was known to the person after sight is undated, any holder
making it so payable; or may insert therein the true date of
(d)  When the name of the issue or acceptance, and the
payee does not purport to be the instrument shall be payable
name of any person; or accordingly.   The insertion of a
(e) When the only or last wrong date does not avoid the
indorsement is an indorsement in instrument in the hands of a
blank, sufficient terms. subsequent holder in due course;
but as to him, the date so inserted is
SEC. 10. Terms, when sufficient.— to be regarded as the true date.
The instrument need not follow the
language of this Act, but any terms SEC. 14. Blanks; when may be
are sufficient which clearly indicate filled.—Where the instrument is
an intention to conform to the wanting in any material particular,
requirements hereof. the person in possession thereof has
a prima facie authority to complete it
SEC. 11. Date, presumption as to. by filling up the blanks therein. And a
—Where the instrument or an signature on a blank paper delivered
acceptance or any indorsement by the person making the signature
thereon is dated, such date is in order that the paper may be
deemed prima facie to be the true converted into a negotiable
date of the making, drawing, instrument operates as a prima facie
acceptance, or indorsement, as the authority to fill it up as such for any
case may be. amount. In order, however, that any
such instrument when completed
SEC. 12. Antedated and may be enforced against any person
postdated.—The instrument is not who became a party thereto prior to
invalid for the reason only that it is its completion, it must be filled up
antedated or postdated, provided strictly in accordance with the
this is not done for an illegal or authority given and within a
fraudulent purpose.   The person to reasonable time.   But if any such
whom an instrument so dated is instrument, after completion, is
delivered acquires the title thereto as negotiated to a holder in due course,
of the date of delivery. it is valid  and effectual for all
purposes in his hands, and he may
enforce it as if it had been filled up
strictly in accordance with  the
authority given and within a
reasonable time.