Asked by Jordan Prather on May 20, 2024
Verified
In order to satisfy the requirement of negotiability that payment be at a time certain or on demand, acceleration of payment is not allowable.
Acceleration
A provision in a contract that allows a lender to demand immediate payment of the entire outstanding balance if certain conditions are not met.
Payment
The transfer of money or its equivalent in exchange for goods, services, or to settle a debt.
Time Certain
A specific point in time agreed upon at which an event must occur or a condition must be met.
- Absorb the criteria necessary for deeming an instrument negotiable.
Verified Answer
BO
Besem ObenofundeMay 20, 2024
Final Answer :
False
Explanation :
Acceleration clauses in negotiable instruments allow the payee or holder to demand full payment before the original due date under specific conditions, such as default, without violating the requirement of payment being at a time certain or on demand.
Learning Objectives
- Absorb the criteria necessary for deeming an instrument negotiable.
Related questions
Analynd Issues a Note to Baliee Indicating a Specified Date ...
An Oral Negotiable Instrument Is Permitted Under the UCC with ...
A Negotiable Instrument Must Be a Conditional Order to Pay
Vivian Purchases a Certificate of Deposit for $10,000 at Right ...
Which of the Following Is Not Required for an Instrument ...