Opal signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." This note is
A) negotiable.
B) nonnegotiable, because it does not specify a rate of interest.
C) nonnegotiable, because it is a promissory note.
D) nonnegotiable, because it is payable only with interest.

Question

Quizplus · Accepted Answer

The note is negotiable because it meets all the requirements of a negotiable instrument, including the promise to pay a specific amount to a specific payee, the absence of any conditions for payment, and the promise to pay with interest (even if the specific rate is not specified).

Opal Signs a Promissory Note Payable to the Order of Payday