Asked by Osayama Jackie on Jul 24, 2024
Verified
A provision in a promissory note payable one year from its date that the maker may extend the maturity date six months impairs the note's negotiability.
Promissory Note
A financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.
Maturity Date
The specified date on which the principal amount of a financial instrument, such as a bond, loan or fixed deposit, is due to be repaid.
Negotiability
The quality of being transferable by endorsement or delivery so as to enable the holder to pass title to a third party.
- Become acquainted with the criteria and prerequisites for the negotiability of instruments within the framework of the Uniform Commercial Code (UCC).
- Understand the specific requirements for a promise or order to be considered unconditional and payable at a definite time.
Verified Answer
VR
Victoria ReddyJul 26, 2024
Final Answer :
False
Explanation :
A provision allowing the maker to extend the maturity date does not impair the negotiability of a promissory note. Negotiability is concerned with the terms under which the note can be transferred, not with the specifics of the repayment schedule.
Learning Objectives
- Become acquainted with the criteria and prerequisites for the negotiability of instruments within the framework of the Uniform Commercial Code (UCC).
- Understand the specific requirements for a promise or order to be considered unconditional and payable at a definite time.