Under the Revised Article 3 of the UCC,variable interest rate notes are not negotiable.

The promise or order in an instrument must be to pay a fixed amount of money,with or without interest or other charges described in the promise.The requirement of a "fixed amount" applies only to principal;the amount of any interest payable is that described in the instrument.Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate.The negotiability of instruments that provide for variable interest rate has now been resolved in Revised Article 3 of the UCC.