An extension clause allows a payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a certain event occurs.

Name: An extension clause allows a payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a certain event occurs.
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Question

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An extension clause allows the maturity date of a time instrument to be extended, not to demand full payment.

An Extension Clause Allows a Payee or Other Holder of a Time