Which of the following statements about the "payable on demand" requirement of negotiable instruments is true?
A)An instrument may be postdated,and normally an instrument "payable on demand" is not payable before the date of the instrument.
B)A promise or order is "payable on demand" only if it states it is payable on "sight."
C)A promise or order is "payable on demand" only if it states a time for payment.
D)A promise or order is "payable on demand" only if it states it is payable on "demand."

Question

Quizplus · Accepted Answer

A promise or order is "payable on demand" if (1)it states that it is payable on "demand" or "sight" (or otherwise at the will of the holder of the instrument)or (2)does not state any time for payment [3-108(a)].For example,if the maker forgets to state when a note is payable,it is payable immediately at the request of the holder of the note.An instrument may be antedated or postdated,and normally an instrument payable on demand is not payable before the date of the instrument [3-113(a)].However,Revised Article 3 makes an important exception for checks: a payor bank (a bank that is the drawee of a draft)may pay a postdated check before the stated date unless the drawer has notified the bank of postdating pursuant to a procedure set out in the Code [3-113(a);4-401(c)] that is similar to the process involved in stopping payment on a check.

Which of the Following Statements About the "Payable on Demand